EQS-Adhoc: SAF-HOLLAND SE has strong start to the year: Sales and adjusted EBIT in the first quarter of 2023 above market expectations, full-year guidance specified
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SAF-HOLLAND SE has strong start to the year: Sales and adjusted EBIT in the first quarter of 2023 above market expectations, full-year guidance specified
Bessenbach (Germany), May 4, 2023 +++ SAF-HOLLAND started the 2023 financial year better than expected and, based on preliminary figures, generated sales of EUR 480.4 million (previous year: EUR 369.7 million) in the first quarter – 29.9% above the previous year's level and significantly above market expectations (Vara consensus EUR 436.5 million). Haldex AB was consolidated for the first time as of February 21, 2023. Organic revenue growth amounted to 10.8%. Main contributors to organic sales growth were the Americas and APAC regions.
Solid organic growth combined with efficiency improvements in production-related areas and cost savings in administrative functions led to an increase in adjusted EBIT of 84.6%. Preliminary adjusted EBIT was EUR 43.4 million (previous year: EUR 23.5 million), also significantly above market expectations (Vara consensus EUR 35.6 million). The adjusted EBIT margin was 9.0% (previous year: 6.4%), exceeding the forecast range of 7.5% to 8.5% for full-year 2023. The development of the North America and APAC regions was above average.
The preliminary result before income tax increased to EUR 28.6 million (previous year: EUR 18.2 million) and was also above market expectations (EUR 25.2 million). This figure already takes into account the finance result of EUR -10.2 million (previous year: EUR -2.8 million), which was lower as a result of the financing costs for the Haldex acquisition and the trend towards higher interest rates. Based on an income tax rate of 31.8% (previous year: 28.3%), SAF-HOLLAND generated a result for the period of EUR 19.5 million (previous year: EUR 13.1 million) in the first quarter of 2023, according to preliminary figures, corresponding to an increase of 49.0%. The market expectation for the result for the period was lower at EUR 17.1 million.
Outlook for 2023 specified – Sales expectations now tending around the upper end of the range
In view of the business development in the first quarter of 2023, SAF-HOLLAND substantiated its forecast as follows: Based on current estimates, the Company is assuming Group sales for full-year 2023 tending around the upper end of the previously planned sales range of EUR 1,800 million to EUR 1,950 million. The acquired Haldex Group is included in the scope of consolidation of the SAF-HOLLAND Group as of February 21, 2023. The Group's adjusted EBIT margin for full-year 2023 is still expected in the range of 7.5% to 8.5%.
The cyber attack previously reported on March 27, 2023, led to a temporary loss of sales of around EUR 40 million, of which around EUR 15 million was attributable to the first quarter 2023, with a greater effect occurring in the second quarter 2023. SAF-HOLLAND continues to expect to be able to recover the majority of lost revenue in the course of the second and third quarters of 2023. As a result of the cyber attack, one-time extraordinary expenses for IT security and consulting services in the low single-digit million euro range are expected, most of which will be incurred in the second quarter of 2023.
SAF-HOLLAND will publish the full quarterly statement for the first quarter of 2023 on May 26, 2023.
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