Vitesco Technologies: A solid third quarter 2023 with strong profitability

• Quarterly sales of around €2.20 billion (Q3 2022: €2.30 billion)
• Adjusted EBIT for Q3 2023: €76.4 million (Q3 2022: €44.7 million) with an adjusted EBIT margin of 3.5 percent (Q3 2022: 2.0 percent)
• Free cash flow in Q3 2023: €73.4 million
• Solid order intake in Q3 2023: €2.5 billion, with electrification products accounting for around €1.5 billion
• Total order intake of almost €7 billion in the electrification business in the first nine months of 2023
• Vitesco Technologies confirms guidance for 2023

Regensburg, November 14, 2023. Vitesco Technologies, a leading international provider of modern drive technologies and electrification solutions for sustainable mobility, published its results for the third quarter of 2023 today.

Group sales amounted to €2.20 billion in the third quarter of 2023 (Q3 2022: €2.30 billion). The decrease in sales in the quarter was mainly due to the planned ramp down of non-core business. Adjusted for changes in the scope of consolidation and exchange-rate effects, organic sales growth was at 1.1 percent.

Sales in the electrification business amounted to €324 million in the third quarter of this year, an increase of around 30 percent compared to the same quarter of 2022.

Adjusted EBIT increased year on year to €76.4 million (Q3 2022: €44.7 million), which corresponds to an adjusted EBIT margin of 3.5 percent (Q3 2022: 2.0 percent). The main reason for the increase were operational improvements in the core business.

Net income came in at €30.3 million (Q3 2022: net loss of €13.8 million), which corresponds to earnings per share of €0.76 (Q3 2022: loss per share of €0.34).

Despite higher capital expenditures ahead of new project launches, free cash flow improved to €73.4 million in the third quarter of 2023 thanks to increased profitability (Q3 2022: minus €16.3 million). Vitesco Technologies had a solid balance sheet as of September 30, 2023, with an equity ratio of 40.6 percent (September 30, 2022: 40.7 percent).
 

Volume of electrification orders remains robust
Order intake in the third quarter amounted to €2.5 billion, of which approximately 60 percent (around €1.5 billion) related to electrification products. In the first nine months of the year, order intake for electrification products thus increased to almost €7 billion.

“I can confidently say that we are well on track to reach our order intake targets this year and to achieve similarly good results in the electrification business to those reported last year,” said CEO Andreas Wolf. “We have received orders in all our key regions and across our entire electrification portfolio."

Wolf adds: “More than 75 product launches this year and in 2024 confirm our attractive electrification portfolio and contribute to the enormous growth in electromobility."

Divisional results for Vitesco Technologies

The Powertrain Solutions division generated sales of €1.41 billion in the third quarter of 2023 (Q3 2022: €1.63 billion), which equates to an organic decrease of 8.2 percent. In the same period, adjusted EBIT improved to €98.1 million (Q3 2022: €73.9 million). The adjusted EBIT margin therefore stood at 6.9 percent (Q3 2022: 4.6 percent). The planned reduction in sales in the non-core business and ongoing cost containment measures had a positive impact on the division’s earnings.
The Electrification Solutions division achieved a further increase in sales due to a persistently high demand, especially in Asia and Germany. The division generated sales of €799.7 million in the third quarter (Q3 2022: €687.1 million), which equates to organic growth of 21.8 percent. Despite ramp-up costs for new electrification projects, adjusted EBIT improved to a loss of €14.3 million (Q3 2022: loss of €23.6 million), which equates to an adjusted EBIT margin of minus 1.8 percent (Q3 2022: minus 3.4 percent).
CEO Andreas Wolf: “We forged ahead with a rapid transformation, maintaining a clear focus on the future. This is clearly reflected in our continuously improving results. With an adjusted EBIT margin of 3.5 percent in the third quarter, we are even above the forecast range for 2023."

Guidance for 2023 confirmed
Vitesco Technologies is confirming its outlook for 2023. The company continues to anticipate sales of €9.2 billion to €9.7 billion. Vitesco Technologies is also expecting the adjusted EBIT margin for 2023 to be in a range of 2.9 percent to 3.4 percent and free cash flow to be around €50 million.

OVERVIEW OF KEY FIGURES

1) Adjusted for changes in the scope of consolidation.

2) Adjusted for amortization of intangible assets from purchase price allocation (PPA), changes in the scope of consolidation, and special effects.

Vitesco Technologies is a leading international developer and manufacturer of cutting-edge drive systems for sustainable mobility. With intelligent system solutions and components for electric, hybrid, and internal combustion drive systems, Vitesco Technologies is making mobility clean, efficient, and affordable. The product portfolio includes electric drives, electronic controls, sensors and actuators, and exhaust gas treatment solutions. In 2022, Vitesco Technologies generated sales of around €9.07 billion and employs a workforce of around 38,000 employees at 50 locations. Vitesco Technologies is headquartered in Regensburg, Germany.

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