From GlobeNewswire:

In 2023, Forvia’s sales grew organically by 14% exceeding the target of debt reduction while also improving its operational margin. The company’s net cash flow was 649 million euros, 2.4% of sales, with net debt/adjusted EBITDA ratio decreasing to 2.1x. Automotive production worldwide increased by 9.7% in 2023, totaling 90,321 units.

The company’s synergy with HELLA is ahead of schedule, achieving cost synergies of 190 million euros by the end of 2023. Their net debt was reduced by nearly 1 billion euros in 2023. They also launched a five-year project called “EU-FORWARD” aiming to strengthen the group’s competitiveness and agility in Europe, projecting a net profitability of over 7% in the EMEA zone by 2028.

Forvia announced its guidance for 2024, with projected revenues between 27.5 and 28.5 billion euros, an operational margin between 5.6% and 6.4% of turnover, and a net cash flow greater than or equal to 2023 in value. The adjusted net debt/EBITDA ratio is expected to be less than or equal to 1.9x by the end of 2024.

Forvia’s CEO, Patrick Koller, expressed optimism, stating that 2023 was marked by both favorable and unfavorable factors. He highlighted reaching key milestones and a strong performance in revenue growth and profit margins during the year. The company reduced its net debt by nearly a billion euros and launched the EU-FORWARD project aimed at improving profitability and reducing regional dependence. The consolidated financial statements for 2023 have been approved by the Board of Directors, and all financial terms have been audited and explained.

The company successfully completed its first billion-euro divestment program by the third quarter of 2023, contributing to a significant reduction in net debt. A second program has been launched to further accelerate debt reduction, with significant cash inflows from divestments during 2022 and 2023, totaling approximately 700 million euros. This concluded the full divestment program in less than 15 months, substantially aiding the company’s financial position.



Read more: FORVIA : RESULTATS ANNUELS 2023