Varta AG

Latest Results (23.05.2024):

Revenue Growth in Q3 2023

Varta AG reported a significant increase in revenue for Q3 2023, totaling €215.1 million, up from €193.9 million in Q3 2022. This growth is attributed to a broad product portfolio and a seasonal increase in demand, alongside successful restructuring measures and reduced costs for raw materials and energy.

Adjusted EBITDA Improvement

For Q3 2023, Varta AG's adjusted EBITDA showed a remarkable improvement, reaching €29.4 million compared to a negative €1.9 million in Q3 2022. This positive shift reflects the company's effective cost management and the reimbursement of €12.5 million in ramp-up costs for large-format lithium-ion cells.

Cost Reductions

Varta AG has successfully decreased its personnel and material costs in 2023. Personnel costs in Q3 2023 were under €60 million, the lowest since Q1 2022, achieving a year-to-date reduction of €7.8 million. Material costs also decreased by €23.1 million compared to the first nine months of 2022, contributing to overall financial health.

Full-Year 2023 Guidance

Varta AG remains confident in its full-year outlook for 2023, expecting revenue to be around €820 million and adjusted EBITDA to range between €40 million and €60 million. This guidance takes into account various adjustments including shared-based payments and restructuring costs.

Inventory and Operating Expense Management

The company has effectively managed its inventory levels and operating expenses, with inventory levels decreasing by 18.6% to €213.7 million as of September 30, 2023, from €262.5 million a year earlier. Other operating expenses were reduced by 19.8% year-over-year, significantly contributing to the financial results of Q3 2023.