Zurich, March 14, 2023: Kongsberg Automotive ASA (“Kongsberg Automotive”) has published its results for the fourth quarter and full year 2022. The results are in line with the most recent guidance and show resilience in the face of another year with difficult market conditions. For the fourth quarter, revenues and EBIT increased compared to the same quarter last year, despite challenges such as higher costs due to rising global inflation, supply-chain issues, and a slower recovery in China due to the prolonged effects of the lockdowns related to the COVID pandemic. All the financial information in this press release refers to the continuing operations of the company, as recent divestments are accounted for separately as discontinued operations.
Comment from the CEO:
2022 marked another challenging year for our industry. I’m therefore both glad and proud of our team that we managed to deliver on our full year revenue and EBIT guidance. In particular with our Interior divestment in 2022, the transition process towards the higher margin parts of our industry and business remains at full speed.
This year, KA and the Board of Directors has decided to launch a strategic review of the company in order to unlock the full value potential. I truly believe that such a process will be in the best interest of our company, employees, and shareholders.
Operations;
- Revenues for the fourth quarter came in at MEUR 215.3 in Q4 2022, an increase of MEUR 9.6 (+4.7%) from the same period last year.
- The growth in Q4 2022 was mainly driven by KA’s outperformance of the commercial vehicle markets in all regions, and the passenger car market in Europe. However, sales were partially offset by a significant decline in the Chinese passenger car market. Additionally, this quarter’s revenues did not include the divested business as a consequence of the completed sale transaction to BRP.
- Adjusted EBIT amounted to MEUR 11.0, exceeding Q4 2021 by MEUR 2.8. Adjusted EBIT is still impacted by high material and energy costs. Price increases to customers achieved in addition to one-time reimbursements are increasingly mitigating these negative effects.
- Lifetime business wins revenues in the fourth quarter 2022 amounted to MEUR 224.3 (MEUR 73.1 in annualized revenue) compared to MEUR 61.1 (MEUR 28.2 in annualized revenue) in Q4 2021.
- The performance for the full year 2022 was in line with the updated guidance with revenues of MEUR 905.6 and adjusted EBIT of MEUR 35.6.
Financial position;
- The adjusted gearing ratio (NIBD/adj. EBITDA) on LTM basis for continuing operations improved to 0.8 in Q4 2022 compared to 4.2 in Q4 2021. This is mainly due to the proceeds received from all divestures completed in 2022 amounting to MEUR 289.8.
- The equity ratio increased to 35.2 % as of December 31, 2022, from 27.1% as of the end of the fourth quarter of 2021. This resulted from the profitable divestitures completed in 2022 as well as the redemption of bond notes at MEUR 75.0 and repayment of the RCF at MEUR 20.0.
- The cash position was MEUR 212.9 at the end of the quarter. The liquidity reserve amounted to MEUR 287.4 (excluding the restricted cash of MEUR 0.5) at the end of the fourth quarter, compared to MEUR 140.9 as of December 31, 2021. The unutilized RCF amounted to MEUR 50.0 as of December 31, 2022. The unutilized securitization facility was MEUR 25.0.
Outlook;
- Despite the continued global macroeconomic challenges, Kongsberg Automotive guides for both higher revenues and EBIT for 2023, adjusted for divestments made in 2022. Revenues are expected to MEUR 880-900 and adjusted EBIT to MEUR 25-30.
- Overall, the targets are based on internal modelling, the latest automotive industry production forecasts, and are highly dependent on the market developing as predicted.
SOURCE: Kongsberg Automotive
