31/08/2021

31 August 2021
31 August 2021, Comments Comments Off on Knaus Tabbert aims to grow sales to €2 billion by 2025
Knaus Tabbert aims to grow sales to €2 billion by 2025

Knaus Tabbert is investing over €220 million into expanding its production to double its capacity to 50,000 units, with a target of growing sales to €2 billion by 2025.

Wolfgang Speck, CEO of Knaus Tabbert AG commented: “The investments are an important milestone for our Group and fit seamlessly into our strategy. This will not only secure our dynamic growth well beyond 2022, but also expand our market position in our core markets in the long term. Digitization, lightweight construction and e-mobility are the central strategic pillars. Diverse megatrends provide upwind for sustainable growth.”

The site in Nagyoroszi (Hungary) will be significantly upgraded in terms of capacity. In the medium term, more than 20,000 units are planned in Hungary (currently 10,000 units). Capacity will thus be at a similar level to that at the Knaus Tabbert headquarters in Jandelsbrunn (Germany). In parallel, at the headquarters of the market leader for luxury motorhomes of the Morelo brand in Schlüsselfeld, production or capacity growth of over 100% is aimed to take place, which will be accompanied by the introduction of a new product line from 2022.

To secure the supply chains and materials supply, the company will increasingly rely on a broader supplier structure for core components in the future. In the area of chassis supply in particular, brands and product segments will be even more strongly differentiated by different chassis manufacturers from as early as 2022. In order to add volume quotas, a multi-sourcing strategy will significantly support the growth course in the motorized vehicles segment from as early as next year.

“We are very pleased with the latest development. This expansion of capacities, which is important for us, enables us to exploit significant value creation potential for our shareholders,” added Marc Hundsdorf, CFO of Knaus Tabbert AG. “We will finance these expansion steps to a large extent from our operating cash flow, in addition to long-term credit lines.”

The debt ratio (net financial debt/EBITDA) is aimed to remain at a low level even after implementation of the investment program due to the continued high internal financing strength.The return on invested capital (ROIC) is also expected to improve continuously.

With the planned investments, Knaus Tabbert AG is aiming for average annual sales growth of over 20% (CAGR) to around two billion Euro by 2025. 2022 is expected to be considerably above the average growth rate due to the high order backlog of EUR 1.2 billion as of June 30, 2021.

With the increasing production volume and the resulting economies of scale and scope, Knaus Tabbert is aiming an operating profit margin in relation to adjusted EBITDA of around 10 % from 2023. Further increases are expected for the following years. In view of the company’s strong internal financing power, the dividend policy practiced to date (distribution of approx. 50 % of the net result) will be maintained.

The approval taken by the Supervisory Board on the multi-year plan and the investment offensive should form the basis for a continued attractive development of the company’s value in the coming years. “We are convinced that we are providing our shareholders with a very worthwhile and sustainable investment,” said Wolfgang Speck, CEO of Knaus Tabbert AG.