Vitesco Technologies starts with solid quarterly results into fiscal year 2024

• Quarterly sales of around €1.99 billion (Q1 2023: €2.31 billion)
• Adjusted EBIT: €33.0 million (Q1 2023: €30.8 million) with an adjusted EBIT margin of 1.7 percent (Q1 2023: 1.4 percent)
• Order intake of €708 million, of which around 40 percent in the electrification business
• Vitesco Technologies confirms outlook for fiscal year 2024

Regensburg, May 8, 2024. Vitesco Technologies, a leading international provider of modern drive technologies and electrification solutions for sustainable mobility, published its first quarter 2024 results today.

“Given the persistently challenging market environment, Vitesco Technologies’ first quarter was solid,” says CEO Andreas Wolf. “In particular, the planned decline in non-core technologies resulted in lower sales at the beginning of the year.”

Transformation progress: non-core business declines as planned

Group sales in the first quarter came in at €1.99 billion (Q1 2023: €2.31 billion), which equates to a year-on-year decline of 13.9 percent. Adjusted for changes in the scope of consolidation and exchange-rate effects, sales were 7.5 percent lower.

The core business contributed €1.57 billion (Q1 2023: €1.60 billion) to total sales, whereas the non-core business generated sales of €423.0 million (Q1 2023: €713.1 million). The decline in sales at the start of the year was mainly attributable to the planned reduction in Contract Manufacturing for Continental.

Adjusted EBIT was at €33.0 million (Q1 2023: €30.8 million), which equates to an adjusted EBIT margin of 1.7 percent (Q1 2023: 1.4 percent). Consolidated net income for the period amounted to €22.7 million (Q1 2023: -€50.7 million) and earnings per share to €0.57 (Q1 2023: -€1.27).

Free cash flow stood at -€90.6 million (Q1 2023: -€41.1 million). The main reasons for this are the planned settlements of advance payment by Continental and the mutual decline in Contract Manufacturing combined with the contractually agreed adjustment of payment terms.
Capital expenditures  on property, plant, equipment, and software amounted to €84.4 million (Q1 2023: €98.0 million). The ratio of capital expenditures to sales was therefore 4.2 percent (Q1 2023: 4.2 percent).

Vitesco Technologies had a solid balance sheet as of March 31, 2024 with an equity ratio of 37.8 percent (March 31, 2023: 39.1 percent).

“All in all, we can be satisfied with the first quarter of 2024. We are confident that we will achieve our targets for the year based on our cost discipline and operational improvements,” says CFO Sabine Nitzsche.

In the first quarter of 2024, Vitesco Technologies’ order intake came in at €708 million, with electrification components accounting for €282 million.

Andreas Wolf: “We are active in project acquisition in all major regions and across our entire portfolio. I can therefore confidently say that our order intake in the electrification business this year will reach the level of 2023.”

The business activities of the two divisions

The Powertrain Solutions division generated sales of €1.27 billion in the first quarter of 2024 (Q1 2023: €1.61 billion). In the same period, the division’s adjusted EBIT rose to €113.8 million (Q1 2023: €109.2 million), which equates to an improved adjusted EBIT margin of 8.9 percent (Q1 2023: 7.3 percent).

The planned reduction in Contract Manufacturing for Continental as well as discontinued activities, particularly in the non-core business, contributed to the division’s decline in sales but improvement in earnings.

Sales generated by the Electrification Solutions division increased year on year to €732.2 million in the first quarter of 2024 (Q1 2023: €716.8 million). This equates to sales growth of 2.1 percent.

With ramp-up costs for electrification products remaining at a high level, the division’s adjusted EBIT came in at -€71.7 million (Q1 2023:  -€71.6 million), which corresponds to an adjusted EBIT margin of -9.8 percent (Q1 2023: -10.0 percent).

Outlook: second quarter and full-year 2024

Vitesco Technologies expects the market environment to remain challenging in the second quarter of 2024. Despite expected improvements in the electromobility market, there is still the potential of geopolitical uncertainty to cause shifts in demand and disruption in supply chains.
The market outlook and the Group’s full year forecast for 2024 are unchanged compared with the expectations published at the 2024 annual press conference. As with the outlook in relation to global vehicle production, all assumptions continue to entail a high level of uncertainty.
 

Vitesco Technologies is a leading international developer and manufacturer of state-of-the-art powertrain technologies for sustainable mobility. With smart system solutions and components for electric, hybrid and internal combustion drivetrains, Vitesco Technologies makes mobility clean, efficient, and affordable. The product range includes electrified drivetrain systems, electronic control units, sensors and actuators, and exhaust-gas aftertreatment solutions. In 2023, Vitesco Technologies recorded sales of €9.23 billion and employs around 35,500 people at around 50 locations worldwide. Vitesco Technologies is headquartered in Regensburg, Germany.

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