Stabilus preparation

Stabilus FY 22/23 final revenues EUR 1.2x bn (preliminary EUR 1.22)

Stabilus FY 22/23 Reported EBIT final EUR 158.xm (preliminary 158.4)

Stabilus FY 22/23 final reported EBIT margin 13.x% (preliminary 13)

Stabilus FY 22/23 Net final Eur 103.xm (preliminary 103.3)

Forecast 23/24 from November 10

*STABILUS EXPECTS REVENUES OF EUR 1.4-1.5BN FOR FY 23/24 (PROG 1.32)

*STABILUS TARGETS EBIT MARGIN OF 13-14% FOR FY 23/24

ROUNDUP: Stabilus confident for 2024 - Borse criticizes pace of growth

KOBLENZ (dpa-AFX) - The automotive and industrial supplier Stabilus grew in all regions in the past fiscal year. However, the company had to accept losses in profitability, and the final quarter was also weak. Group CEO Michael Büchsner spoke of a challenging environment, according to a statement on Friday. He nevertheless expressed optimism for the new financial year, which started at the beginning of October: the recent acquisition of the US company Destaco, among others, is expected to ensure further growth. On the stock market, however, Stabilus initially fell sharply.

Shortly after the start of trading, the MDax-listed stock slipped to a three-week low with a discount of a good five percent. The price correction from the interim high reached at the beginning of November thus continued. With a discount of 3.4 percent to 58.10 euros, the share was also down for the year - by almost eight percent.

The US bank JPMorgan stated that the annual figures of the automotive and industrial supplier were in line with expectations. However, the growth drivers are likely to be questioned as these appear to be weakening in the automotive business, wrote analyst Akshat Kacker.

According to the preliminary figures, Stabilus was able to increase its revenue by almost 9 percent year-on-year to a good 1.2 billion euros in the past fiscal year. In the last quarter of the year, however, the group suffered a four percent drop in sales. A year earlier, the company had made an extraordinarily strong final spurt thanks to price increases and achieved a record quarter.

Among other things, Stabilus offers gas springs for trunk lids. However, the strongest growth was in electric drives, which are used to automatically open luggage compartments. Last year, the Group benefited in particular from demand in Europe and Asia. However, JPM analyst Kacker pointed out that business with the so-called Powerise drives declined in the final quarter. According to the expert, there appears to be a normalization in the product mix.

Adjusted for special effects, the Stabilus Group's earnings before interest and taxes rose slightly to EUR 158.4 million, but the corresponding margin fell by one percentage point to 13 percent. At the bottom line, profit fell by one million euros to 103.3 million euros.

Group CEO Michael Büchsner continues to expect "growth above the comparative economic indicators for the new year, even if the macro-economic and geopolitical environment calls for a certain degree of caution", as he said in the press release. "Strategically, we have provided important impetus for the future development of the company with a future concept for the Koblenz site, the increase in our stake in the Cultraro Group and the agreement to acquire Destaco to strengthen our industrial business."

The management expects sales to increase to between EUR 1.4 and 1.5 billion in the new financial year. The Group is counting on a slight increase in global vehicle production of around one percent, according to a company presentation published at the time of the presentation of the figures. At 13 to 14 percent, the Group management expects the adjusted operating margin to be roughly on a par with the previous two years. According to the information provided, the forecast also includes effects from the consolidation of Destaco, including anticipated costs for the integration of the American company.

The supplier had already increased its stake in its partner Cultraro to 60 percent in July, with the brand now operating under its own name under the Stabilus umbrella. In mid-October, Stabilus then announced the acquisition of the US company Destaco, which specializes in industrial automation, for 680 million dollars to strengthen its own industrial business. The deal is expected to be completed in the first half of the year. The Group is also investing around ten million euros in modernization and automation at its main plant in Koblenz. According to earlier information, around 150 jobs are to be cut by 2025, primarily in production./tav/men/jha/