Vitesco Technologies publishes its preliminary results for 2022.
“We look back on a successful year, despite the historic challenges such as Russia’s war of aggression in Ukraine and ongoing disruption to supply chains,” says Chief Executive Officer Andreas Wolf.
Profitability at the upper end of the forecast range
In 2022, Vitesco Technologies increased its sales to €9.07 billion (2021: €8.35 billion; market consensus: €9.08 billion). The company published its guidance ranging between €9.0 billion to €9.2 billion. Adjusted for changes in the scope of consolidation and exchange rate effects, sales rose by 4.0 percent. Vitesco Technologies’ core business achieved an organic growth of 9.2 percent, compared with an overall market growth of 6.2 percent.
Vitesco Technologies generated sales of around €1.1 billion from electrification components in 2022. The core business of all three business units contributed to this result, whereby the Electrification Technology business unit registered the strongest percentage growth in sales of 17.9 percent from €587.1 million in 2021 to €691.9 million in fiscal year 2022.
Adjusted EBIT rose to €222.9 million (2021: €148.5 million; market consensus: €213 million). The company’s adjusted EBIT margin of 2.5 percent (2021: 1.8 percent) was at the upper end of its forecast range of 2.3 percent to 2.5 percent and exceeded expectations (market consensus: 2.3 percent).
Due to reporting date related effects, the free cash flow for the fiscal year 2022 came to €123.2 million (2021: €113.3 million). This was higher both than Vitesco Technologies’ own forecast of more than €75 million and the market consensus of €68 million.
Free cash flow included a cash outflow of €446.6 million (2021: €441.3 million) for capital expenditure on property, plant, and equipment and software (without consideration for right-of-use-assets in accordance with IFRS 16). As a percentage of sales, the capital expenditures ratio is at 4.9 percent (2021: 5.3 percent).
In 2022, Vitesco Technologies received new orders totaling around €14 billion (2021: €11.2 billion). Roughly €10.4 billion of the order intake was attributable to components for electrified vehicles (2021: €5.1 billion). “This means around 75 percent of our orders were related to e-mobility. That is a record for the company,” says Chief Executive Officer Andreas Wolf. “The volume of new orders we received around the world shows once again that the OEM’s have now fully embraced the electrification trend.”
With an equity ratio of 40.3 percent as of December 31, 2022 (December 31, 2021: 36.3 percent), Vitesco Technologies’ balance sheet remains exceptionally solid. The company reported net liquidity of €333.4 million as of December 31, 2022 (December 31, 2021: €345.1 million).
Chief Financial Officer Werner Volz expresses his satisfaction in view of the difficult market conditions with this performance: “Despite the headwinds we were able to fully meet our forecast for 2022 in all key financial indicators, and even exceed it in some areas. This gives us a further boost in our transformation toward e-mobility.”
Vitesco Technologies will publish a comprehensive overview of the company’s performance in 2022 as well as an outlook for 2023 at the Annual Press Conference on March 23, 2023.
