FACC : records strong revenue growth in the first quarter of 2023
May 03, 2023 at 01:21 am EDT
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Revenue of EUR 162.7 million - increase of +27.6% compared to Q1/2022
Challenging environment due to inflationary cost increases and disruptions within supply chains
The ongoing recovery of air traffic led to a significant revenue increase in the first quarter: FACC AG closed the first quarter of 2023 with revenue growth of 27.6% compared to the previous year. This is due to the significantly improved market environment which is, however, still affected by disruptions in international supply chains and persistently high inflation. This is also reflected in the operating result at the end of the first quarter of 2023.
International supply chains are expected to ease in the full year 2023. As is customary in the industry, inflation-driven cost increases will be passed on to the market with a time lag of up to one year. Higher demand for new aircraft can be confirmed from today's perspective; this will result in further rate increases for all major aircraft models. With the exception of China, passenger numbers on short- and medium-haul flights (continental travel) have meanwhile returned to pre-pandemic levels. This growth trend is set to continue, and passenger numbers are also on the rise again in China following the relaxation of the strict COVID rules. Only international travel has not returned to its pre-crisis level. The prediction made by FACC's management in 2020, according to which the aviation industry will fully recover by the end of 2024, has proved to be accurate.
Focus on industrial growth, research and expansion of the workforce
The main priority is to further increase revenue in the company's core business and to expand manufacturing capacities. In the financial year 2023, approximately EUR 34.8 million will be invested in FACC's planned growth. This includes tripling the area of the FACC plant in Croatia, which went into operation in 2022. FACC is conducting intensive research into technologies and materials that are set to make a significant contribution to achieving carbon-free mobility in the aviation industry. This includes, in particular, the establishment of a sustainable materials cycle management; FACC lightweight construction and product solutions will thus play a major role in meeting the aviation industry's goal of carbon-neutral flying. The personnel expansion, which was initiated in 2022 with the onboarding of around 400 new colleagues, will continue. Within the next 14 months, the workforce will be further expanded by 400-600 employees throughout the company due to the excellent demand situation.
Outlook
For the year as a whole, the management of FACC AG continues to expect an increase in revenue in the high single-digit percentage range as well as a gradual improvement in earnings.
Note: Robert Machtlinger (CEO) and Ales Starek (CFO) will be available for questions today (Wednesday, 03.05. 2023) at 09.00 CET after a short virtual presentation.
The entry is possible via the following link: https://montegaconnect.de/event/h8pjbjh381t7bxwzsw9zv5v2exon4mlb
FACC AG published this content on 03 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2023 05:20:02 UTC.
FACC AG is an Austria-based company engaged in the aerospace and defense industry. The Company specializes in the manufacture of aircraft parts and components. It divides its business into three divisions: Aerostructures, Engines & Nacelles, and Interior. The Aerostructures division covers control surfaces, fairings and wing components. The Engines & Nacelles division provides engine and nacelles components. The Interior division offers interior design services for commercial aircraft, business jets/private jets, freighters and helicopters. The Companyâs services range from on-site support with field engineering, spares service, and repairs to assembly training of customer staff for components and systems delivered by the Company. The Companyâs products are manufactured at four production sites in Austria.