Valeo released its H1 2023 financial results, noting these highlights from Christophe Périllat, chief executive officer:
•Sales of 11.2 billion euros, up by 19%
-Valeo’s leadership position consolidated in both areas of innovation: ADAS (up 26% LFL(1)) and powertrain electrification (up 108% LFL);
-Original equipment sales up 19 % LFL on an adjusted basis(2) (up 26% in Q2);
-Outperformance versus automotive production of 8 pts LFL on an adjusted basis (10 pts in Q2);
-Strong growth in aftermarket sales, up 5% LFL on an adjusted basis
•Operating margin of 3.2%, up 200 basis points compared with first-half 2022 as adjusted, a further step forward in improving our margins, as set out in our Move Up strategic plan
•Inflation-related negotiations with customers mostly complete
• Time lag of 260 million euro inflow resulting from these negotiations – amount recorded at end-June with cash impact in Q3 – leading to free cash flow of -156 million euros
• Strong business momentum: order intake of 18.8 billion euros, with profitability levels up versus 2022, when profitability was already above the levels set out in the Move Up plan. More than half of these orders are linked to innovations in driving assistance, driven by strong worldwide demand for software defined vehicles and Valeo’s strong position in this market.
• Financial performance to improve in H2, leading us to reaffirm our 2023 objectives.
(1) Like for like.
(2) Adjusted data: data for first-half 2022 has been adjusted as though the high-voltage electrification business (formerly Valeo Siemens eAutomotive) had been consolidated in the Group’s financial statements as of January 1, 2022.
