Dr. Hönle (HNL) Company Presentation summary

Market position and business overview

• Recognized as a leading supplier of industrial UV technology with approximately €93 million in sales and €5.5 million EBITDA, employing 600 people across more than 20 global locations.

• Operates three main business units: Adhesive Systems, Curing, and Disinfection, each with dedicated P&L, product management, and business development functions.

• Adhesive Systems serve electronics, medical, automotive, and optics sectors with UV/light curing adhesives and related equipment.

• Curing unit focuses on UV/LED curing equipment for packaging, 3D/2D coating, and industrial printing applications.

• Disinfection unit provides UV lamps and quartz glass products for water, air, and surface disinfection, targeting industries like ballast water and food.

Financial performance and business highlights

• 9M sales reached €69.8m (down 3% YoY), with Q3 sales of €22.6m below expectations due to weak adhesives demand; EBITDA for 9M at €3.6m (down 12% YoY).

• Curing business showed robust performance with EBITDA up 48% YoY, while disinfection advanced with 5% sales growth and 80% EBITDA increase.

• Adhesive Systems faced an 11% sales decline and a 52% EBITDA drop, mainly due to automotive sector weakness and shifting value chains in Asian electronics.

• Cost-cutting measures reduced SG&A by 8% and cost of goods sold ratio by 4% YoY; unprofitable sun simulation business discontinued.

• Positive operating cash flow of €3.7m, with net financial debt gradually decreasing and equity ratio at 52%.

Strategic initiatives and outlook

• Focus on cost management, business simplification, and a one-stop-shop strategy to improve customer access and operational efficiency.

• Emphasis on environmental impact: solvent-free adhesives, non-toxic disinfection, energy-efficient LED use, and durable products.

• New product launches include UV disinfection for ultra-pure water and high-precision UV measurement devices, with initial sales expected in FY 2024/25.

• Revenue guidance for FY 2024/25 set at €92–94m, with EBITDA expected between €5–6m.

• Shareholder structure is concentrated, with the largest holder owning 61.7% of shares.