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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.
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).
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.
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