Automotive supplier Preh GmbH generated sales of around € 1.69 billion in the 2023 financial year. Despite the difficult market environment, Preh thus remained at the previous year’s level of around € 1.67 billion. However, the sales target of around € 1.84 billion was clearly missed. The specialist for driver control systems (HMI) and e-mobility components generated EBIT of € 115 million in 2023, which was also below the target figure of € 122 million. Accordingly, the balance sheet profit (net profit) also fell short of expectations. In view of the massive slump in e-vehicle sales figures, the company expects 2024 to be a difficult year.
Preh CEO Zhengxin “Charlie” Cai explained at the presentation of the 2024 balance sheet figures in Bad Neustadt: “The year 2023 presented us with major challenges. The German automotive industry is facing very difficult market conditions due to supply chain bottlenecks, high energy costs and the withdrawal of state subsidies for electric cars, among other things. Nevertheless, we managed to maintain our sales at the previous year’s level. It must be clearly stated: The competitiveness of our production in Germany has come under pressure compared to other locations.”
The number of employees in the Preh Group increased by around 60 to 7,415 in 2023. At the end of the year, 1,745 employees worked for Preh in Bad Neustadt (2022: 1,725 employees).
The start to the 2024 financial year has fallen short of expectations: In the first quarter, turnover was 23% below plan. The main reason for this is the weak development of the market for electric vehicles. With the end of the e-car subsidy in December 2023, new registrations plummeted, and in March 2024, according to the Kraftfahrt-Bundesamt they were 29% lower than in the same month of the previous year.
However, Cai also acknowledged the long-term growth prospects of e-mobility: “Even though we see currently a slowdown in the e-mobility market, we expect attractive growth in this segment in the medium to long term.” Moreover, he pointed out the importance of the driver control systems (HMI) business for the stability of Preh Group, as this segment currently accounts for the majority of total sales.
In conclusion, Cai emphasized: “We cannot simply sit out this historically poor economic situation in Germany, as there are currently no signs of improvement in the economy. We are actively working on being one step ahead of market developments. Cutting costs is a necessity to strengthen our competitiveness in the long run.”
SOURCE: Preh
