Gigaset AG, an internationally operating company in the field of communication technology, informed the capital market today in the form of an ad hoc announcement that revenue expectations and free cash flow for 2021 have to be adjusted due to the inability of upstream suppliers to deliver - especially in the field of semiconductors.
Gigaset was able to compensate for the supply bottlenecks for preliminary products - especially semiconductors - for a long time. However, in the fourth quarter there was an increasing difference between orders and material availability. Furthermore, material prices have risen significantly.
"The situation is extremely challenging for us. Our order books are bulging at the annual level. The effects of the Corona pandemic on topics such as new work, home office and digitalisation have led to clearly positive developments on the demand side," says Thomas Schuchardt, CFO at Gigaset. "We could have made 2021 a bit of a record year."
In fact, the term "supply bottleneck" is no longer appropriate. All manufacturing industries are facing a massive crisis, the duration of which cannot currently be measured. According to the BDI, supply bottlenecks and material shortages are placing a greater burden on the production of German manufacturers than in other industrialised countries.
Gigaset is facing precisely the same problem that the BDI describes for numerous other industrial sectors. It says: "Many manufacturers cannot work off their order books as usual due to supply bottlenecks [...]. This is dampening production."
"The production backlogs caused by the semiconductor crisis can no longer be fully recovered," stresses Klaus Weßing, CEO of Gigaset AG. "The chip shortage has deprived Gigaset of a very good year. We are already working on adapting the supply chains for the future in such a way that a chip supply is ensured in the best possible way. For this, we rely on our long-standing partners and suppliers."
In view of this far-reaching, pan-industrial supply crisis and based on current information on the further course of business, the Executive Board of Gigaset has today accordingly come to the conclusion that the previous company forecast must be adjusted.
Previously, the company expected a slight increase in revenues compared to the previous year (EUR 214.2 million). Now, a turnover of at least EUR 210 million is expected, whereby the achievement of the original turnover assumption remains possible. The actual turnover to be achieved is largely dependent on the current and future ability of the company's upstream suppliers to deliver, especially in the semiconductor sector.
The expected positive free cash flow at pre-Corona level (2019: EUR 1.2 million) is now expected to range between EUR minus 20 and minus 5 million.
The development of EBITDA, on the other hand, is pleasing. Here, a good price-margin mix contributed to the fact that a significant increase of at least EUR 7.5 million compared to the previous year (EUR 1.9 million) is expected instead of a slight increase.