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25.04.2024 18:20:22 - dpa-AFX: EQS-News: FRIWO achieves guidance in the 2023 financial year - return to profitability in 2024 and clearly positive momentum expected for subsequent years (english)
FRIWO achieves guidance in the 2023 financial year - return to profitability
in 2024 and clearly positive momentum expected for subsequent years
EQS-News: FRIWO AG / Key word(s): Annual Report/Annual Results
FRIWO achieves guidance in the 2023 financial year - return to profitability
in 2024 and clearly positive momentum expected for subsequent years
25.04.2024 / 18:20 CET/CEST
The issuer is solely responsible for the content of this announcement.
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FRIWO achieves guidance in the 2023 financial year - return to profitability
in 2024 and clearly positive momentum expected for subsequent years
Ostbevern, April 25, 2024 - FRIWO - an international manufacturer of
technically leading chargers and e-drive solutions - achieved the targets
adjusted in October last year in the 2023 financial year. Group revenue of
111.1 million euros was achieved, slightly above the forecast of 110 million
euros, but significantly below the previous year (184.9 million euros) due
to persistently weak demand and order cancellations in Europe in the
e-mobility, industrial and tools segments. Only the medical segment was able
to report an increase in revenue of more than 16%. The significant decline
in sales, start-up costs for the Indian joint venture, one-off expenses for
the adjustment of production structures and negative currency effects were
only partially offset by improved cost efficiency and significant personnel
adjustments in Vietnam. As a result, earnings before interest and taxes
(EBIT) amounted to -7.4 million euros in 2023, compared to a profit of 4.3
million euros in the 2022 financial year. The target for full-year EBIT had
been a loss in the mid-single-digit million euro range. After taxes, there
was a loss of 11.1 million euros, following a slight plus of 0.5 million
euros in the same period of the previous year.
'The 2023 financial year was a very difficult one for FRIWO, which was
characterized by a massive drop in demand as well as order cancellations in
the core European market. We reacted immediately, significantly reduced
costs and staff and massively streamlined our production structures. As a
result, we got off lightly and, against the backdrop of a market recovery
expected in the second half of the year and the first positive earnings
contributions from our Indian joint venture, we expect to return to
profitability in the course of 2024,' comments Rolf Schwirz, CEO of FRIWO
AG, on the development.
Cost flexibility increased and headcount reduced by around a third
Despite initial signs of stabilization at the start of 2024, the market
saturation for electric bikes in Europe continues to shape developments.
Both the order intake of 80.7 million euros (end of 2022: 156.2 million
euros) and the order backlog of 49.6 million euros (end of 2022: 83.6
million euros) as at December 31, 2023 were clearly down on the previous
year. FRIWO has responded to the market weakness and adjusted the number of
employees in the last 12 months from 2,501 to 1,701 as at December 31, 2023.
More than 80% of employees work at the production facilities in Vietnam.
FRIWO has made extensive adjustments to its production activities since the
beginning of 2024. With effect from March 1, 2024, the production activities
remaining at the Ostbevern site were sold to an associated company. In
addition, assets and materials for component production near Saigon have
just been acquired by a Hong Kong company. Both acquirers will act as
suppliers for the products and system solutions manufactured by FRIWO in the
future. Overall, these transactions will lead to a further reduction of more
than 500 employees.
Balance sheet structure characterized by weak demand
The decline in business development also led to a significant reduction in
total assets from 105.0 million euros at the end of 2022 to 74.3 million
euros. The equity ratio fell from 23.7% to 17.1% and working capital to 28.9
million euros. Thanks to the extension of the existing syndicated loan and
shareholder loans at the end of 2023, FRIWO is solidly financed until the
end of 2025.
Outlook for 2024: Upturn expected in the second half of the year and first
earnings contributions from the e-mobility joint venture in India
The Executive Board is cautiously optimistic for the 2024 financial year
despite a persistently difficult and volatile environment. It is difficult
to predict how demand will develop in the first half of the year due to the
recessionary trends in key sales markets. However, FRIWO believes there is a
good chance of a significant recovery in demand in the second half of the
year. In addition to the aforementioned cost efficiency measures, the easing
of material prices and energy costs should also have a positive impact.
Against this backdrop, the Executive Board is forecasting Group revenue of
100 to 120 million euros and a break-even Group EBIT for the 2024 financial
year, with the operating break-even point to be reached again over the
course of the year. This includes further up-front costs for the
establishment of the joint venture in India, in which FRIWO holds a 49.9%
stake. This activity is expected to contribute to earnings for the first
time in the 2024 financial year, which will have a positive impact on the
financial result. The ramp-up of production at the site near New Delhi,
which is operated jointly with the Indian UNO MINDA Group, is proceeding
according to plan, meaning that incoming orders and letters of intent in the
mid-triple-digit million euro range for e-drive solutions are expected to be
processed over the next few years. In addition, FRIWO is still in the
process of opening up further markets in Southeast Asia for e-mobility
system solutions.
Further information on the company can be found on FRIWO's investor
relations pages at: https://www.friwo.com/en/about/investor-relations/
Contact investor relations and media
FRIWO AG
Ina Klassen
+49 (0) 2532 81 869
ir@friwo.com
Peter Dietz
+49 (0) 69 97 12 47 33
dietz@gfd-finanzkommunikation.de
About FRIWO:
FRIWO AG, listed in the General Standard of the Frankfurt Stock Exchange and
headquartered in Ostbevern/Westphalia, is an international manufacturer of
technically leading chargers and e-drive solutions. FRIWO offers a whole
range of applications with customized systems from a single source. Founded
in 1971, the company has evolved from a supplier of power supply products to
a full-range provider of sophisticated and customized solutions for
electromobility. Today, the product portfolio includes not only high-quality
power supply solutions, but also battery charging solutions for a wide range
of applications. In addition, all components of a modern electric drive
solution are also available: from the display to the motor control and drive
unit to the control software. With modern development centres, production
facilities and sales locations in Europe, Asia and the USA, FRIWO is present
in all the world's major markets. FRIWO's most important customers are
leading brands in their respective markets and rely on FRIWO products to
provide their customers with the highest quality. The main shareholder of
FRIWO AG is a subsidiary of VTC GmbH & Co. KG, Munich. For more information,
please visit our website at https://www.friwo.com
FRIWO Group at a Glance
Profit before tax (PBT) -11.1 1.8
Earnings after taxes -11.1 0.5
Earnings per share in euros -1.29 0.06
Capital expenditure 4.0 5.9
Employees (as at reporting date) 1,701 2,501
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25.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1889957 25.04.2024 CET/CEST
in 2024 and clearly positive momentum expected for subsequent years
EQS-News: FRIWO AG / Key word(s): Annual Report/Annual Results
FRIWO achieves guidance in the 2023 financial year - return to profitability
in 2024 and clearly positive momentum expected for subsequent years
25.04.2024 / 18:20 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
FRIWO achieves guidance in the 2023 financial year - return to profitability
in 2024 and clearly positive momentum expected for subsequent years
* Group revenue falls to 111.1 million euros in the 2023 financial year,
slightly above forecast
* EBIT in line with expectations at -7.4 million euros, impacted by
decline in sales, structural adjustments, start-up costs for Indian
joint venture and negative currency effects
* Market recovery in core regions expected in the second half of 2024,
first earnings contribution from e-mobility joint venture in India
* Outlook for 2024: Group revenue expected to be in the range of 100 to
120 million euros, balanced EBIT forecast
* Subsequent years should benefit from the unbroken trend towards more
e-mobility and strong growth in Asia
Ostbevern, April 25, 2024 - FRIWO - an international manufacturer of
technically leading chargers and e-drive solutions - achieved the targets
adjusted in October last year in the 2023 financial year. Group revenue of
111.1 million euros was achieved, slightly above the forecast of 110 million
euros, but significantly below the previous year (184.9 million euros) due
to persistently weak demand and order cancellations in Europe in the
e-mobility, industrial and tools segments. Only the medical segment was able
to report an increase in revenue of more than 16%. The significant decline
in sales, start-up costs for the Indian joint venture, one-off expenses for
the adjustment of production structures and negative currency effects were
only partially offset by improved cost efficiency and significant personnel
adjustments in Vietnam. As a result, earnings before interest and taxes
(EBIT) amounted to -7.4 million euros in 2023, compared to a profit of 4.3
million euros in the 2022 financial year. The target for full-year EBIT had
been a loss in the mid-single-digit million euro range. After taxes, there
was a loss of 11.1 million euros, following a slight plus of 0.5 million
euros in the same period of the previous year.
'The 2023 financial year was a very difficult one for FRIWO, which was
characterized by a massive drop in demand as well as order cancellations in
the core European market. We reacted immediately, significantly reduced
costs and staff and massively streamlined our production structures. As a
result, we got off lightly and, against the backdrop of a market recovery
expected in the second half of the year and the first positive earnings
contributions from our Indian joint venture, we expect to return to
profitability in the course of 2024,' comments Rolf Schwirz, CEO of FRIWO
AG, on the development.
Cost flexibility increased and headcount reduced by around a third
Despite initial signs of stabilization at the start of 2024, the market
saturation for electric bikes in Europe continues to shape developments.
Both the order intake of 80.7 million euros (end of 2022: 156.2 million
euros) and the order backlog of 49.6 million euros (end of 2022: 83.6
million euros) as at December 31, 2023 were clearly down on the previous
year. FRIWO has responded to the market weakness and adjusted the number of
employees in the last 12 months from 2,501 to 1,701 as at December 31, 2023.
More than 80% of employees work at the production facilities in Vietnam.
FRIWO has made extensive adjustments to its production activities since the
beginning of 2024. With effect from March 1, 2024, the production activities
remaining at the Ostbevern site were sold to an associated company. In
addition, assets and materials for component production near Saigon have
just been acquired by a Hong Kong company. Both acquirers will act as
suppliers for the products and system solutions manufactured by FRIWO in the
future. Overall, these transactions will lead to a further reduction of more
than 500 employees.
Balance sheet structure characterized by weak demand
The decline in business development also led to a significant reduction in
total assets from 105.0 million euros at the end of 2022 to 74.3 million
euros. The equity ratio fell from 23.7% to 17.1% and working capital to 28.9
million euros. Thanks to the extension of the existing syndicated loan and
shareholder loans at the end of 2023, FRIWO is solidly financed until the
end of 2025.
Outlook for 2024: Upturn expected in the second half of the year and first
earnings contributions from the e-mobility joint venture in India
The Executive Board is cautiously optimistic for the 2024 financial year
despite a persistently difficult and volatile environment. It is difficult
to predict how demand will develop in the first half of the year due to the
recessionary trends in key sales markets. However, FRIWO believes there is a
good chance of a significant recovery in demand in the second half of the
year. In addition to the aforementioned cost efficiency measures, the easing
of material prices and energy costs should also have a positive impact.
Against this backdrop, the Executive Board is forecasting Group revenue of
100 to 120 million euros and a break-even Group EBIT for the 2024 financial
year, with the operating break-even point to be reached again over the
course of the year. This includes further up-front costs for the
establishment of the joint venture in India, in which FRIWO holds a 49.9%
stake. This activity is expected to contribute to earnings for the first
time in the 2024 financial year, which will have a positive impact on the
financial result. The ramp-up of production at the site near New Delhi,
which is operated jointly with the Indian UNO MINDA Group, is proceeding
according to plan, meaning that incoming orders and letters of intent in the
mid-triple-digit million euro range for e-drive solutions are expected to be
processed over the next few years. In addition, FRIWO is still in the
process of opening up further markets in Southeast Asia for e-mobility
system solutions.
Further information on the company can be found on FRIWO's investor
relations pages at: https://www.friwo.com/en/about/investor-relations/
Contact investor relations and media
FRIWO AG
Ina Klassen
+49 (0) 2532 81 869
ir@friwo.com
Peter Dietz
+49 (0) 69 97 12 47 33
dietz@gfd-finanzkommunikation.de
About FRIWO:
FRIWO AG, listed in the General Standard of the Frankfurt Stock Exchange and
headquartered in Ostbevern/Westphalia, is an international manufacturer of
technically leading chargers and e-drive solutions. FRIWO offers a whole
range of applications with customized systems from a single source. Founded
in 1971, the company has evolved from a supplier of power supply products to
a full-range provider of sophisticated and customized solutions for
electromobility. Today, the product portfolio includes not only high-quality
power supply solutions, but also battery charging solutions for a wide range
of applications. In addition, all components of a modern electric drive
solution are also available: from the display to the motor control and drive
unit to the control software. With modern development centres, production
facilities and sales locations in Europe, Asia and the USA, FRIWO is present
in all the world's major markets. FRIWO's most important customers are
leading brands in their respective markets and rely on FRIWO products to
provide their customers with the highest quality. The main shareholder of
FRIWO AG is a subsidiary of VTC GmbH & Co. KG, Munich. For more information,
please visit our website at https://www.friwo.com
FRIWO Group at a Glance
in million euros 2023 2022
Revenue 111.1 184.9
Earnings before interest and taxes (EBIT) -7.4 4.3
EBIT margin in percent -6.6 2.3
Profit before tax (PBT) -11.1 1.8
Earnings after taxes -11.1 0.5
Earnings per share in euros -1.29 0.06
Capital expenditure 4.0 5.9
12/31/2023 12/31/2022
Balance sheet total 74.3 105.0
Equity 12.7 24.9
Equity ratio in percent 17.1 23.7
Employees (as at reporting date) 1,701 2,501
---------------------------------------------------------------------------
25.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: FRIWO AG
Von-Liebig-Straße 11
48346 Ostbevern
Germany
Phone: +49 (0)2532 81-0
Fax: +49 (0)2532 81-129
E-mail: ir@friwo.com
Internet: www.friwo.com/de/about/investor-relations/
ISIN: DE0006201106
WKN: 620110
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt
(General Standard); Regulated Unofficial Market in
Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1889957
End of News EQS News Service
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1889957 25.04.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
FRIWO AG O.N. | 620110 | Xetra | 29,400 | 21.06.24 17:36:08 | +0,200 | +0,68% | 0,000 | 0,000 | 29,600 | 29,400 |
