HELLA forecasts improved profitability for 2023

International automotive supplier predicting good year.

Hella in 2023

HELLA has announced its preliminary results for the short fiscal year 2022 (1 June to 31 December 2022) and the outlook for 2023.

The company generated sales of €4.4 billion (£3.9bn) in the short fiscal year 2022. The adjusted earnings before interest and taxes (adjusted EBIT) amount to €222 million (£197m), the adjusted EBIT margin is 5.0 percent (fiscal year 2021/2022: 4.4 percent). Adjusted free cash flow from operating activities amounts to €83m (£73.7m). HELLA reports results for a short fiscal year after the fiscal year was changed to the calendar year with effect as of 1 January 2023. 

HELLA CEO Michel Favre commented: “In the short fiscal year 2022, we delivered a solid business performance and again won numerous high-technology, large-volume customer projects with an order intake of around €7bn (£6.2bn).

“As expected, profitability, and cash flow have also improved. We were able to successfully mitigate the continued high-costs for materials, energy and logistics by passing on price increases, as well as manage our cost base efficiently.” 

Company outlook forecasts record sales

For the fiscal year 2023 (1 January to 31 December 2023), HELLA expects to generate currency and portfolio-adjusted sales in the region of €8.0 to 8.5bn (£7.1 to £7.6bn). The operating income margin* is forecasted to be in the range of 5.5 to 7.0 percent.  For net cash flow in relation to sales HELLA expects a target value of approximately 2 percent. This outlook is based on HELLA’s expectation that global automotive production will be around 82m vehicles. 

Favre continued: “We expect the market environment to continue to be volatile. However, thanks to our solid order book, we remain optimistic about the future. Therefore, we expect to achieve record sales in 2023 and to exceed €8n in sales for the first time.

“This shows our strong outperformance of the market in our key regions, and we expect to deliver a solid improvement of our operating income and net cash flow,” Favre continued. “In terms of the forecasted operating income margin and net cash flow in relation to sales, we expect an initially lower value in the first half of the fiscal year. However, we will increase these KPIs in the further course of the fiscal year.” 

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