DGAP-News: VARTA AG: VARTA AG with another record year - further increase in dynamic revenue and earnings growthEQS
Im Artikel erwähnte Wertpapiere: Varta
DGAP-News: VARTA AG
/ Key word(s): Preliminary Results
Corporate News on the preliminary, unaudited figures 2019
VARTA AG with another record year - further increase in dynamic revenue and earnings growth
Ellwangen, February 17, 2020. VARTA AG is today announcing its preliminary, unaudited figures for fiscal year 2019. The Group can look back on yet another successful fiscal year. The strong revenue and earnings growth was once again accelerated, exceeding the most recent guidance from October.
Herbert Schein, Chief Executive Officer (CEO) of VARTA AG: "In the previous fiscal year, we have once again exceeded our guidance, which had already been raised several times during 2019. By massively expanding our production capacities, growth in the area of lithium-ion batteries will again be significantly accelerated. As innovation leaders, we will also increase the energy densities of our lithium-ion batteries by around 30%. As a result, we will further extend our technological edge considerably."
Steffen Munz, Chief Financial Officer (CFO) of VARTA AG, adds: "We have further accelerated the high pace of growth in the previous fiscal year and again recorded a step-change improvement in profitability. We are looking ahead to 2020 with great optimism. A very high order backlog will allow us to further accelerate the high revenue and earnings growth in 2020."
Group revenue rose by approximately 34% to around € 364m during fiscal year 2019. By scaling the business model, growth in operating earnings outpaced that of revenue. Adjusted EBITDA increased by around 95% to approximately € 98m. The adjusted EBITDA margin improved by roughly 8.4PP to around 26.9%.
Highly dynamic growth in revenue, equating to an increase of around 38% to roughly € 302m, was recorded in the "Microbatteries" segment. By far the strongest revenue growth is again being recorded for rechargeable lithium-ion batteries for high-tech consumer products, particularly premium true wireless headsets (hearables). This is a consequence of continued high customer demand in a market that is growing by around 30% annually. As leaders in technology and innovation, VARTA AG is growing significantly faster than the market and has established a very successful business model.
Our global market-leading position for hearing aid batteries was further expanded in a market that is backed by underlying structural growth. The Group is currently benefiting from the trend toward rechargeable hearing aids in addition to the new business with a leading US retail chain that was ramped-up during the prior fiscal year.
Strong growth of approximately 100% to around € 95m was posted for adjusted EBITDA. A step-change improvement was recorded in the adjusted EBITDA margin, which rose by around 9.7PP to roughly 31.3% of revenue.
"Power & Energy" segment makes further positive contribution to growth
Dynamic revenue growth was recorded in the Power & Energy segment, rising by around 20% to
Outlook: Revenue and earnings growth further accelerated - strong demand for lithium-ion batteries - first-time consolidation of VARTA Consumer
VARTA AG is looking ahead to fiscal year 2020 with great optimism. The Group expects to further accelerate organic revenue and earnings growth in the current fiscal year. Demand for rechargeable lithium-ion batteries for high-tech consumer products, particularly for hearables, remains very high. As leaders in technology and innovation, VARTA is benefiting from the trend toward ever smaller and more powerful coin-shaped lithium-ion batteries. Production capacities are therefore to be significantly expanded again. Moreover, this will take place faster than originally planned: production capacities will be expanded to 200 million cells per year.
The next innovation step is also imminent: this year, VARTA AG will launch a lithium-ion cell with an approximately 30% higher energy density along with an improved cycle stability. VARTA will therefore again set the industry standard and increase its innovative edge over the competition. VARTA has a very successful business model for its lithium-ion batteries. In addition to a reputation as leaders of technology and innovation, VARTA also stands out on account of its proprietary mechanical engineering and tool manufacturing facility and its highly automated mass production. As a result, VARTA offers customers exemplary quality standards. Moreover, the business model is protected by a comprehensive patent portfolio.
In the current fiscal year, the first-time consolidation of the VARTA Consumer business, which was acquired on January 2, 2020, will generate even stronger growth in Group revenue and earnings. VARTA Consumer's attractive cashflow profile will make a significant medium-term contribution to the financing of the additional expansion of the rapidly growing lithium-ion production.
The audited financial statements for fiscal year 2019 will be released on March 31, 2020 (including guidance for fiscal year 2020).
The preliminary results on the website:
About VARTA AG
17.02.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||976839|
|End of News||DGAP News Service|