Swiss firm Autoneum's consolidated revenue climbs 27.6% in 2023

Excluding the translation effects due to a strong Swiss franc, revenue in local currencies climbed by 34.8 per cent to CHF 2,431.7 million and thus was in line with the guidance. Based on provisional figures and thanks to the turnaround achieved in North America, Autoneum expects an EBIT margin excluding special effects for 2023 at the upper end of the guidance of 3.5 per cent to 4.5 per cent and a free cash flow of well over CHF 100 million excluding acquisition-related net cash outflows, which exceeds the guidance.

The automobile industry picked up again in the 2023 financial year. According to market forecasts, there was a significant rise in production volumes worldwide, with 90.1 million vehicles produced globally (2022: 82.4 million vehicles) and growth of 9.4 per cent, driven by the Europe, North America and Asia regions. In this market environment, Autoneum achieved acquisition-related growth in local currencies of 27.6 per cent. Organic growth was 7.2 per cent, resulting in total revenue growth of 34.8 per cent in local currencies. Excluding the negative foreign currency translation effects due to a strong Swiss franc of CHF 129.4 million, revenue was CHF 2,431.7 million and thus within the guidance. In absolute terms, Autoneum increased revenue at the group level consolidated in Swiss francs by CHF 497.8 million to CHF 2,302.3 million (2022: CHF 1,804.5 million), the company said in a press release.

In Europe and North America, the significant rise in revenue compared to the previous year was mainly due to the acquisition of Borgers Automotive as well as to higher market volumes and price adjustments. Business Group Europe’s revenue consolidated in Swiss francs was up sharply, climbing by 74.2 per cent over the previous year. As a result of the newly acquired Borgers units, acquisition-related growth was 69.3 per cent. In local currencies, organic growth was 9.3 per cent. Business Group North America significantly boosted revenue consolidated in Swiss francs by 12.7 per cent compared to the previous year, with acquisition-related growth of 10.2 per cent and organic growth of 7.2 per cent.

Business Group Asia’s revenue consolidated in Swiss francs decreased by 11.1 per cent, mainly because of negative foreign currency effects. Excluding these translation effects, revenue was at about the same level as the previous year. Acquisition-related growth was 3.3 per cent, while organic revenue in local currencies declined by 4.2 per cent. Business Group SAMEA recorded revenue growth in local currencies of 22.1 per cent, which was primarily due to inflation-related price increases. Persistent sharp declines in the value of various local currencies in this region led to a decrease in revenue consolidated in Swiss francs of 9.6 per cent.

Based on provisional figures and thanks to the turnaround achieved in North America, Autoneum expects an EBIT margin excluding special effects for 2023 at the upper end of the guidance of 3.5 per cent to 4.5 per cent. The EBIT margin including special effects will be slightly higher than the EBIT margin excluding special effects, as further restructuring measures were decided in Europe in the second half of the year to increase competitiveness. Autoneum expects a free cash flow of well over CHF 100 million excluding acquisition-related net cash outflows and thus exceeds the guidance.

Fibre2Fashion News Desk (RR)