EQS-News: SAF-HOLLAND SE exceeds repeatedly raised sales target in the 2022 financial year – Adjusted EBIT margin at the upper end of the target range
SAF-HOLLAND SE exceeds repeatedly raised sales target in the 2022 financial year –
Adjusted EBIT margin at the upper end of the target range
- Group sales reach new record level of EUR 1,565.1 million in the 2022 financial year (previous year: EUR 1,246.6 million) despite challenging environment
- Solid customer demand continues in fourth quarter; Q4 sales up 21.0% to EUR 389.5 million (previous year: EUR 321.8 million)
- Adjusted EBIT margin improved to 8.0% in 2022 (previous year: 7.5%); reaches upper end of the target range of 7.0% to 8.0% last raised in July 2022
Bessenbach (Germany), February 15, 2023 +++ SAF-HOLLAND SE ("SAF-HOLLAND"), one of the world's leading suppliers of trailer and truck components, today published preliminary unaudited financial figures for the 2022 financial year.
Raised sales forecast exceeded once again
As a result of the continued solid production figures for trucks and especially trailers in the core markets of North America and Europe and the above-market sales performance of SAF-HOLLAND products, Group sales in the fourth quarter of 2022 increased by 21.0% to EUR 389.5 million (previous year: EUR 321.8 million). Adjusted for exchange rate and acquisition effects, organic growth was strong at 13.0%.
For full-year 2022, SAF-HOLLAND was able to expand Group sales by 25.6% (organic: 17.9%) to a new record level of EUR 1,565.1 million (previous year: EUR 1,246.6 million). This resulted in Group sales exceeding the forecast, which had already been raised several times during the year, with the latest sales forecast around the upper end of the range of EUR 1.4 billion to EUR 1.5 billion.
Strong growth in the Americas (+47.0%) and APAC (+44.5%) regions was the main contributor to the Group’s performance. As the regional market leader in the increasingly important Indian transport market, the Company
benefitted from the ongoing government expansion program for transport infrastructure, as well as from the more demanding regulatory requirements for braking systems for trucks and trailers. In the EMEA region, the Group achieved sales growth of 11.0%, despite the particularly challenging macroeconomic and supply chain situations in the 2022 financial year.
The Original Equipment (OE) business benefitted from both market share gains and catch-up effects in customer demand following the restrained investment of fleet operators and carriers during the COVID-19 pandemic and supply chain issues. OE business with the truck and trailer manufacturers grew 27.6% in 2022. The Group generated EUR 1,144.0 million (previous year: EUR 896.8 million) in sales in this customer segment. In the cyclically resilient spare parts business, sales also rose sharply, supported by the growing population of SAF-HOLLAND axle and suspension systems in the market. At EUR 421.1 million (previous year: EUR 349.8 million), the Aftermarket business contributed 20.4% more to Group sales than in the previous year. The integration of the Swedish braking systems specialist Haldex AB, which generates around half of its business in the aftermarket, will significantly increase the share of this business in the sales of the combined Company.
Alexander Geis, CEO of SAF-HOLLAND SE comments: "Despite a thoroughly challenging environment, we were able to significantly exceed the targets we set ourselves for 2022. With our product offering, we benefitted to an extraordinary extent from the solid demand from truck and trailer manufacturers and gained market share. Internally, we have further optimized our processes, reduced costs and positioned ourselves technologically for the future through our acquisition of Haldex. We expect the transaction to close in the coming weeks."
Adjusted EBIT margin rises to 8.0 %
The Company passed on the sharp rise in steel, freight and energy costs either through price adjustments or by offsetting them through standardization and better efficiency in production-related areas, supplemented by cost savings in administrative functions. As a result, adjusted EBIT increased 33.8%, outpacing Group sales growth in percentage terms, and amounted to EUR 124.6 million (previous year: EUR 93.1 million). The adjusted EBIT margin, also supported by a favorable product mix, reached 8.0%, compared to 7.5% in the previous year, placing it at the upper end of the target range of 7.0% to 8.0%, reflecting the most recent upward revision in July 2022. Among the segments, the development in the APAC region stood out in particular, driven by the strong sales performance in India and Australia and successful cost reductions in the China business, which does not yet contribute to profits. The adjusted EBIT margin in the APAC region improved overall to 10.1% (previous year: 1.7%).
Result before income tax rises more rapidly than sales
The finance result reflects the increase in interest rates and the higher finance expenses resulting from the financing of the Haldex shares acquisition and amounted to EUR –13.0 million, compared to EUR –9.5 million in the previous financial year. The result before income tax increased by 41.2 % to EUR 88.5 million (previous year: EUR 62.7 million).
SAF-HOLLAND will publish the full audited consolidated figures for the 2022 financial year and its forecast for the 2023 financial year on March 30, 2023.
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SAF-HOLLAND SE is a leading international manufacturer of chassis-related assemblies and components for trailers, trucks and buses. The product range includes, among other things, axle and suspension systems for trailers as well as fifth wheels for trucks and coupling systems for trucks, trailers and semi-trailers. In addition, SAF-HOLLAND develops innovative products to increase the efficiency, safety and environmental friendliness of commercial vehicles. The focus here is on the digitalization and networking of trailers as well as the electrification of axles. The products and solutions are marketed under the brands SAF, Holland, Haldex, V.Orlandi, TrailerMaster, Neway, KLL and York. SAF-HOLLAND supplies original equipment to vehicle manufacturers on six continents. In the aftermarket business, the company supplies spare parts to the manufacturers' service networks as well as to wholesalers and, through an extensive global distribution network, to end customers and service centers. Around 3,700 dedicated employees worldwide are already working on the future of the transport industry. SAF-HOLLAND shares have been listed in the Prime Standard of the German Stock Exchange since 2007 and are part of the SDAX selection index. For further information, please visit: www.safholland.com.
This press release contains forward-looking statements based on assumptions and estimates made by the Management Board of SAFHOLLAND SE. These statements can be identified by wording such as "expect", "want", "anticipate", "intend", "plan", "believe", "strive", "estimate", and "will" or similar terms. Although we assume that the expectations contained in these forward-looking statements are realistic, we cannot guarantee that they will prove to be correct. These assumptions may contain risks and uncertainties that could cause the actual figures to differ considerably from the forward-looking statements. Factors that can cause such discrepancies include changes in the macroeconomic and business environment, changes in exchange rates and interest rates, the introduction of products that compete with our own products, a lack of acceptance of new products or services, and changes in corporate strategy. SAF-HOLLAND does not intend to update these forward-looking statements, nor does it assume any responsibility to do so. This press release includes supplementary financial indicators that either are or may be so-called alternative performance indicators that are not clearly defined in the relevant financial reporting framework. In assessing the financial position and performance of SAF-HOLLAND, these supplementary financial indicators should not be used in isolation or as an alternative to those presented in the consolidated financial statements and determined in accordance with the relevant financial reporting framework. Other companies that present or report alternative performance indicators with similar names may calculate them differently. Explanations of the key financial figures used are available in the Annual Report of SAF-HOLLAND SE.
Due to rounding, some of the figures presented in this press release as well as in other reports may not add up exactly to the stated totals and percentages presented may not accurately reflect the absolute values to which they relate.