HELLA increases sales and earnings in 2023, expects further improvement in 2024

HELLA today presented the preliminary results for the fiscal year 2023 and the company outlook for 2024. Thus, the company has increased sales and earnings in 2023 as forecasted, and it expects further improvements for the current fiscal year.

On a preliminary basis, HELLA increased its currency and portfolio-adjusted sales by 11.7 percent to € 8.1 billion in fiscal year 2023 (1 January to 31 December 2023); taking exchange rate effects into account, reported Group sales improved by 10.3 percent to € 8.0 billion (calendar year 2022: € 7.2 billion). Operating income increases by around 65 percent to € 486 million (calendar year 2022: € 295 million¹), in relation to a low prior-year figure, and the operating income margin thus rises to 6.1 percent (calendar year 2022: 4.1 percent¹). The net cash flow in relation to sales amounts to 2.6 percent (calendar year 2022: 3.0 percent¹).

Bernard Schäferbarthold, CEO at FORVIA HELLA: “In 2023, we were able to increase our sales and generated over € 8 billion for the first time in the company’s history. We also achieved satisfactory financial results thanks to higher business volumes, successful cost control and the pass-through of inflation costs. Based on our preliminary business figures, we have therefore achieved all the targets we set for the fiscal year 2023.”

In fiscal year 2023, the Lighting Business Group increased its sales by 13.0 percent to € 3.9 billion (calendar year 2022: € 3.4 billion). The main growth drivers were higher business volumes in all regions, also as a result of new production launches. Operating income improves significantly to € 132 million (calendar year 2022: € 16 million), while the operating income margin rises to 3.4 percent (calendar year 2022: 0.5 percent).

The Electronics Business Group increased sales by 7.9 percent compared to the prior year to € 3.4 billion (calendar year 2022: € 3.1 billion). The main sales drivers were the business with high-voltage battery management systems, voltage converters, radar sensors and body electronics. Operating income amounts to € 232 million (calendar year 2022: € 179 million) and the operating income margin therefore increases to 6.9 percent (calendar year 2022: 5.7 percent).

The Lifecycle Solutions Business Group also achieved an increase in sales of 7.9 percent and generated sales of € 1.1 billion (calendar year 2022: € 1.0 billion). The main drivers were the strong spare parts business, particularly in Europe and the Americas, the further roll-out of the newly launched particle counter for diesel vehicles and the business for trucks and buses as well as agricultural and construction machinery. Operating income in the Lifecycle Solutions Business Group amounts to € 128 million (calendar year 2022: € 106 million), resulting in an increase in the operating income margin to 11.9 percent (calendar year 2022: 10.7 percent).

For fiscal year 2024 (1 January to 31 December 2024), FORVIA HELLA expects to generate currency and portfolio-adjusted Group sales of between around € 8.1 and 8.6 billion. The operating income margin is forecasted to be between around 6.0 and 7.0 percent. For net cash flow in relation to sales, FORVIA HELLA is forecasting a figure of approximately 3 percent.

“For 2024, we are forecasting slight improvements as we expect the market recovery to weaken especially in Europe this year and global car production to remain at a level of around 90 million vehicles for the full year,” says CEO Bernard Schäferbarthold. “As a Company, we have always been characterized by our ability to adapt at an early stage to changing market conditions. Although we are still strategically well positioned, we are now taking targeted measures to strengthen our competitiveness, particularly in Europe.”