From GlobeNewswire:

In 2023, Forvia saw its sales grow organically by 14%, with a 430 basis point outperformance and a 100 basis point improvement in operating margin at 5.3% of sales. They also saw a net cash flow of 649 million euros, 2.4% of sales. Their net debt / adjusted EBITDA ratio saw a significant decrease to 2.1x at the end of the year, compared to 3.1x the year before (after the acquisition of HELLA). The global automotive production increased by 9.7% in 2023, with sales at constant scope and exchange rates increasing by 10.9% or 14.0% in actual terms. The operational result increased by 35.7% and EBITDA also increased by 14.4%, with an adjusted rate of 12.2% of sales. The cash flow also increased by 34.3% and adjusted net debt / EBITDA decreased to 2.1x from 2.7x.

Forvia had cumulative net cost synergies of 190 million euros at the end of 2023, exceeding their target. They also announced an increase in their target for cumulative net cost synergies to over 350 million euros by the end of 2025. They accelerated their debt reduction, reducing their net debt by nearly 1 billion euros in 2023 with a program Manage by Cash and the completion of a one billion euros divestment program launched in Q2 2022 and accelerated with a second one billion euros divestment program launched in Q4 2023.

Forvia also had selective orders of 31 billion euros in 2023, in line with their Power25 objectives, along with reduced pre-launch costs. Their guidance for 2024 is in line with their Power25 ambition, with a revenue between 27.5 and 28.5 billion, operational margin between 5.6% and 6.4%, net cash flow greater than or equal to 2023 in value, and a net debt/adjusted EBITDA ratio of less than or equal to 1.9x by the end of 2024. They have also set ambitious targets for 2025, including a revenue of around 30 billion euros, an operational margin greater than 7%, net cash flow at 4% of revenue, and a net debt/adjusted EBITDA ratio of less than 1.5x by the end of 2025.

Forvia announced today its intention to launch “EU-FORWARD,” a five-year project aimed at strengthening the competitiveness and agility of their operations in Europe. The project aims to adapt the Group’s production and R&D activities to a rapidly changing European environment. The project would allow Forvia to significantly improve profitability to over 7% of sales in the EMEA zone, rebalancing the Group’s regional mix with EMEA accounting for around 40% of sales in 2028 (compared to 46% in 2023) and about 35% of operational profit (compared to 22% in 2023), thereby reducing reliance on China while continuing to grow in that region.

Forvia’s CEO, Patrick Koller, expressed his satisfaction with Forvia’s performance in 2023, noting their profitable growth, improved operational margin, and success in their debt reduction priorities. He also highlighted progress in improving the profitability of various business units, advancing sustainable goals, and achieving strong and selective order intake. He announced Forvia’s intention to continue their growth through sustainable and profitable means, accelerate debt reduction, and take measures to adapt to market changes. He also emphasized the launch of “EU-FORWARD” and the Group’s commitment to building a stronger, more adaptable business.

Forvia approved its 2023 consolidated financial statements, which had been audited, detailing the completion of their first one billion euros divestment program in Q3 of 2023 and the launch of a second one billion euros divestment program to accelerate debt reduction.



Read more: RESULTATS ANNUELS 2023 / Coquille p.23