LIPPSTADT, Germany — HELLA, the automotive supplier operating under the FORVIA umbrella brand, accelerated its sales growth and significantly increased profitability in the first half of the fiscal year 2023 (Jan. 1st to June 30, 2023).
Sales increased by 17.3 percent year-on-year to €4.0 billion (H1 calendar year 2022: €3.4 billion); after adjustments for currency effects, sales amounted to €4.1 billion outperforming the global light vehicle production by 6 percentage points, which grew by an estimated 11 percent over the same period.
Profitability also strongly improved: Operating income increased to €245 million in the first half of 2023 (H1 calendar year 2022: €139 million), an improvement of 76.2 percent in value.
The operating income margin thus increased to 6.1 percent (H1 calendar year 2022: 4.1 percent). Net cash flow to sales ratio also increased to 2.2 percent (H1 calendar year 2022: -0.2 percent).
“We had a very successful first half of the year: Our sales strongly developed and again outperformed automotive production. After a low prior-year figure due to inflation and the pandemic, we have significantly improved profitability. On the one hand, we were benefiting from higher business volumes and, on the other, we were able to successfully manage price increases and pass them to our customers,” said HELLA CEO Michel Favre.
“With regard to our further business development, it is crucial that we continued to acquire significant high-volume customer projects with high technology content in the first half of the year. These included, for example, an extensive international headlamp business, as well as orders for 77 GHz radar sensors and battery electronics. Without the outstanding commitment of our employees these successes would not be possible. I would therefore like to thank the teams around the world for their excellent work.”
High demand for solutions for automated driving and electromobility
Sales of the Electronics Business Group increased by 13.8 percent year-on-year to €1.7 billion (H1 calendar year 2022: €1.5 billion). Main drivers were the high demand for products for automated driving and electromobility, for example radar sensors and high-voltage battery management systems. Operating income increased to €109 million
(H1 calendar year 2022: €87 million). This corresponds to an operating income margin of 6.5 percent (H1 calendar year 2022: 5.9 percent).
Company outlook for the fiscal year 2023 confirmed
“We are currently on track to achieve our annual targets and confirm our corporate outlook. In a persistently volatile market environment that continues to be characterized by inflationary pressure, we now have more visibility regarding the further market development and assume a global market volume of around 86 million vehicles in 2023,” says HELLA CEO Michel Favre.
For the full fiscal year (Jan. 1st to Dec. 31, 2023), HELLA still expects to generate currency and portfolio-adjusted Group sales of around €8.0 to 8.5 billion. The forecast for the operating income margin remains at around 5.5 to 7.0 percent. Both the adjusted sales and the operating income margin are expected to be around the midpoint of the respective forecast range. In relation to sales, the Company still forecasts a net cash flow of approximately 2 percent.
