Friday, March 15, 2024

Vitesco Technologies Fiscal Year 2023: Profitability And Cash Flow Exceeded Expectations Expectations

* Sales increase to €9.23 billion in fiscal year 2023 (2022: €9.07 billion)

* Adjusted EBIT margin came in higher than the company’s own guidance at 3.7 percent (2022: 2.5 percent)

* Free cash flow above the company’s expectations at €84.9 million (2022: €123.2 million)

* Growth in electrification sales of around 21 percent to €1.3 billion (2022: €1.1 billion)

* Order intake of more than €12 billion, of which around 70 percent in the electrification business Order backlog as of December 31, 2023 stood at around

* €58 billion, with more than half electrification-related First dividend distribution planned Guidance for 2024: sales forecast between €8.3 billion and

* €8.8 billion, further improvement of adjusted EBIT margin between 4.5 percent and 5.0 percent, negative free cash flow of around €350 million expected

Vitesco Technologies, a leading international provider of modern drive technologies and electrification solutions for sustainable mobility, is publishing its consolidated financial statements for fiscal year 2023. The company had already published preliminary results on February 23, 2024, in which it fully achieved – and in some cases exceeded – its own forecast for all key financials.

CEO Andreas Wolf: “2023 was a challenging but successful year. Our company achieved further profitable growth, won important orders, and advanced its leading position in the electromobility market.”

Profitability and cash flow well above company and market expectations

In 2023, Vitesco Technologies increased its consolidated sales to €9.23 billion despite a persistently challenging market environment (2022: €9.07 billion). Adjusted for changes in the scope of consolidation and exchange-rate effects, sales increased by 4.4 percent.

Due to the further improvement in operating performance, the company’s adjusted EBIT margin of 3.7 percent (2022: 2.5 percent) was much higher than its forecast range of 2.9 percent to 3.4 percent. The adjusted EBIT thus amounted to €341.1 million (2022: €225.5 million).

Thanks to improved profitability and despite higher investments and the financial burden from the contract manufacturing business with Continental, free cash flow amounted to €84.9 million in fiscal year 2023 (2022: €123.2 million). This was higher than Vitesco Technologies’ own forecast of approximately €50 million and the market consensus of €71 million.

Capital expenditures1 on property, plant, and equipment and software amounted to €499.8 million (2022: €446.6 million). The ratio of capital expenditures to sales was therefore 5.4 percent (2022: 4.9 percent).

As of December 31, 2023, Vitesco Technologies’ equity ratio stood at 37.6 percent (December 31, 2022: 40.3 percent). The company reported net liquidity of €337.0 million as of December 31, 2023 (December 31, 2022: €333.4 million).

Vitesco Technologies generated sales of around €1.3 billion from electrification components in 2023 (2022: €1.1 billion). The reason for the less significant increase in sales was the softening of demand for electrification components in the market in the fourth quarter of 2023. The numerous project ramp-ups could not compensate for this effect.

In fiscal year 2023, total order intake came to more than €12 billion (2022: €14 billion). Roughly.

No comments:

Total Pageviews