• FY 2023 revenue remained stable at EUR 518.5 million (FY 2022: EUR 519.3 million)
• Normalized FY 2023 EBITDA declined by 7% to EUR 53.1 million (FY 2022: EUR 57.4 million)
• Q4 2023 revenue decreased by 7% to EUR 120.3 million (Q4 2022: EUR 129.6 million)
• Q4 2023 normalized EBITDA came in at EUR 10.3 million, down 14% (Q4 2022: EUR 12.0 million)
• Net debt reduction of EUR 15.2 million in Q4 2023 resulting in a leverage ratio of 2.7 (Q4 2022: 2.4)
• Production of three new Automotive E projects commenced in Q4 2023
• Automotive E secured EUR 230 million in new business nominations in 2023
• Successfully agreed extension of EUR 102.5 million Revolving Credit Facility for one year to April 2027
• Proposed dividend of EUR 0.45 per share; pay-out ratio 50% of normalized full-year net profit before amortization (2022: EUR 0.72 per share)
Joep van Beurden, Kendrion CEO:
"2023 was an eventful year in which we demonstrated our resilience. In an economic environment of prolonged geopolitical unrest and slowly receding inflation, our company delivered a solid performance. We managed to keep our revenues stable, raised prices in Automotive, reduced our costs, and reduced our net debt in Q4 by EUR 15.2 million, bringing our leverage ratio from 2.9 at the end of Q3 to 2.7 at year-end. I am proud of our performance and the steps we have taken toward achieving our ambitious financial objectives for 2025.
The split of the Automotive Group into Core and E proved to be successful, helping us to implement sales price increases and to improve R&D efficiency. We already initiated the mass production of three out of the nine new projects in Automotive, supporting our revenue growth in this Business Group. In addition, our pipeline for Automotive E developed positively, with an additional EUR 230 million in new business nominations over 2023. On the industrial side of our business, Industrial Actuators and Controls had a strong year. Within IAC, our 2021 acquisition 3T did particularly well, significantly growing its business. Industrial Brakes faced a challenging second half of the year with a sudden and unexpected steep fall in demand. In response, we have taken a range of actions to ensure that IB remains prepared for higher revenue levels in the longer term while reducing the cost base in line with lower activity today. The measures include introducing Kurzarbeit in Germany and reviewing our business processes to identify potential efficiency gains.
Looking ahead, we anticipate the prevailing economic conditions to persist through the first six months of 2024, with prospects for improvement in the second half of the year. Based on this outlook, we are optimistic about our performance in 2024, anticipating revenue growth in Automotive, a return to healthy profitability at IB, and continued reliable performance at IAC. This confidence is also reflected in our dividend proposal, which at 50% of our normalized net profit is at the maximum of our policy range for the fourth consecutive year. In the longer term, we remain confident in the growth opportunities presented by the global push towards electrification and clean energy, which underpins our ambitions.
Assuming no negative surprises from external developments, we believe we can achieve our 2025 financial targets of 5% organic growth between 2019 and 2025, an EBITDA of at least 15% in 2025, and an ROI of at least 25% in 2025."
About Kendrion N.V.
Kendrion designs, manufactures and delivers intelligent actuators that help advance the global push towards electrification and sustainable energy. Today, these compact and connected actuators are used in wind power, robots, factory automation, electric vehicles, energy distribution and industrial heating processes, supporting our OEM customers around the world in transitioning to safer and cleaner forms of energy.
As a technology pioneer and innovator, building on a foundation of over one hundred years of experience, we are driven by a desire to explore creative solutions for the engineering challenges of tomorrow. We take broad responsibility for how we source, manufacture, and conduct business. Sustainable business practices are integrated in our processes and embedded in our culture. Rooted in Germany, headquartered in the Netherlands, and listed on the Amsterdam stock exchange, our footprint extends across Europe to the Americas and Asia.
Amsterdam, 28 February 2024
The Executive Board
For more information, please contact:
Kendrion N.V.
Mr. Joep van Beurden
Chief Executive Officer
Tel:+31 6 82 56 85 65
Email: IR@kendrion.com
Press release:
https://www.kendrion.com/fileadmin/user_upload/Downloads/Press_releases/PR_2024/Press_release-_Q4FY_results_2023.pdf
• Normalized FY 2023 EBITDA declined by 7% to EUR 53.1 million (FY 2022: EUR 57.4 million)
• Q4 2023 revenue decreased by 7% to EUR 120.3 million (Q4 2022: EUR 129.6 million)
• Q4 2023 normalized EBITDA came in at EUR 10.3 million, down 14% (Q4 2022: EUR 12.0 million)
• Net debt reduction of EUR 15.2 million in Q4 2023 resulting in a leverage ratio of 2.7 (Q4 2022: 2.4)
• Production of three new Automotive E projects commenced in Q4 2023
• Automotive E secured EUR 230 million in new business nominations in 2023
• Successfully agreed extension of EUR 102.5 million Revolving Credit Facility for one year to April 2027
• Proposed dividend of EUR 0.45 per share; pay-out ratio 50% of normalized full-year net profit before amortization (2022: EUR 0.72 per share)
Joep van Beurden, Kendrion CEO:
"2023 was an eventful year in which we demonstrated our resilience. In an economic environment of prolonged geopolitical unrest and slowly receding inflation, our company delivered a solid performance. We managed to keep our revenues stable, raised prices in Automotive, reduced our costs, and reduced our net debt in Q4 by EUR 15.2 million, bringing our leverage ratio from 2.9 at the end of Q3 to 2.7 at year-end. I am proud of our performance and the steps we have taken toward achieving our ambitious financial objectives for 2025.
The split of the Automotive Group into Core and E proved to be successful, helping us to implement sales price increases and to improve R&D efficiency. We already initiated the mass production of three out of the nine new projects in Automotive, supporting our revenue growth in this Business Group. In addition, our pipeline for Automotive E developed positively, with an additional EUR 230 million in new business nominations over 2023. On the industrial side of our business, Industrial Actuators and Controls had a strong year. Within IAC, our 2021 acquisition 3T did particularly well, significantly growing its business. Industrial Brakes faced a challenging second half of the year with a sudden and unexpected steep fall in demand. In response, we have taken a range of actions to ensure that IB remains prepared for higher revenue levels in the longer term while reducing the cost base in line with lower activity today. The measures include introducing Kurzarbeit in Germany and reviewing our business processes to identify potential efficiency gains.
Looking ahead, we anticipate the prevailing economic conditions to persist through the first six months of 2024, with prospects for improvement in the second half of the year. Based on this outlook, we are optimistic about our performance in 2024, anticipating revenue growth in Automotive, a return to healthy profitability at IB, and continued reliable performance at IAC. This confidence is also reflected in our dividend proposal, which at 50% of our normalized net profit is at the maximum of our policy range for the fourth consecutive year. In the longer term, we remain confident in the growth opportunities presented by the global push towards electrification and clean energy, which underpins our ambitions.
Assuming no negative surprises from external developments, we believe we can achieve our 2025 financial targets of 5% organic growth between 2019 and 2025, an EBITDA of at least 15% in 2025, and an ROI of at least 25% in 2025."
About Kendrion N.V.
Kendrion designs, manufactures and delivers intelligent actuators that help advance the global push towards electrification and sustainable energy. Today, these compact and connected actuators are used in wind power, robots, factory automation, electric vehicles, energy distribution and industrial heating processes, supporting our OEM customers around the world in transitioning to safer and cleaner forms of energy.
As a technology pioneer and innovator, building on a foundation of over one hundred years of experience, we are driven by a desire to explore creative solutions for the engineering challenges of tomorrow. We take broad responsibility for how we source, manufacture, and conduct business. Sustainable business practices are integrated in our processes and embedded in our culture. Rooted in Germany, headquartered in the Netherlands, and listed on the Amsterdam stock exchange, our footprint extends across Europe to the Americas and Asia.
Amsterdam, 28 February 2024
The Executive Board
For more information, please contact:
Kendrion N.V.
Mr. Joep van Beurden
Chief Executive Officer
Tel:+31 6 82 56 85 65
Email: IR@kendrion.com
Press release:
https://www.kendrion.com/fileadmin/user_upload/Downloads/Press_releases/PR_2024/Press_release-_Q4FY_results_2023.pdf
