DGAP-News: VARTA AG
/ Key word(s): Annual Results
Corporate News Financial Figures 2021
Ellwangen, 31st March 2022. VARTA AG continues to increase revenue and profitability. Group revenue increased by 3.8 % to € 902.9 million in the 2021 financial year. Adjusted EBITDA increased by around 17 % to € 282.9 million. Group result reached € 126 million, an increase of 31.9 %. For the year 2022, the technology company from Ellwangen (Baden-Württemberg/Germany) expects revenue of between € 950 million and one billion and assumes an adjusted EBITDA of between € 260 and € 280 million. The ongoing consequences of the COVID-19 pandemic and the effects of the Ukraine war on the global production and supply chains of some customers, as well as the rising commodity prices as a result of these crises are having a negative impact on the outlook.
Herbert Schein, CEO of VARTA AG: "We have another very good year behind us, in which we were not only able to further increase our revenue, but also achieved historic results in terms of profitability. For future growth in small lithium-ion cells, we are in an excellent position. In addition, we have already started the next growth offensive. Our large-format lithium-ion high-performance round cells have great potential. We have been supplying cells from pilot production for one customer since the end of 2021. Our batteries make a difference. That is why there is a very high demand."
Rainer Hald, CTO of VARTA AG: "In the production of the large-format lithium-ion round cells, we benefit from our experience in setting up highly efficient mass production. We can therefore use synergies."
Armin Hessenberger, Chief Financial Officer (CFO) of VARTA AG: "The current global situation due to the ongoing consequences of COVID-19 and the Ukraine war are affecting raw material prices and the availability of components at our customers. We can therefore not rule out an impact on our business. Nevertheless, with the cash flow from ongoing business and the high equity ratio of 42.6 %, VARTA AG is in a solid position to finance future investments and distribute a dividend of EUR 2.48."
Revenues in the Lithium-Ion Solutions & Microbatteries segment reached € 514.4 million and are thus 1.2 % above the same period of the previous year. New customer projects with rechargeable lithium-ion cells for high-tech consumer products started with a delay in the third quarter and therefore affected revenue and earnings to a lesser extent in the year under review. In addition, price increases for raw materials had a negative effect, which could not be fully compensated for by increases in efficiency and could only be partially passed on to customers. The global market position for hearing aid batteries remains good. The Group is currently benefiting from its very robust business model and from the significant increase in demand for rechargeable lithium-ion cells. In the lithium-ion battery pack business, the very high growth continues.
Household Batteries segment makes a very positive contribution to growth and earnings
By focusing on the brand business, VARTA Consumer Batteries has significantly improved its profitability compared to the same quarter of the previous year. The business with energy storage solutions grew very dynamically in the fiscal year and doubled compared to the same quarter of the previous year, thereby gaining further market share.
The pilot production of ultra-high-performance lithium-ion round cells at the Ellwangen site is running as planned. Further negotiations with new customers are currently underway. In general, there is a great demand for these cell types.
Annual report at:
About VARTA AG
VARTA AG produces and markets a comprehensive battery portfolio from microbatteries, household batteries, energy storage systems to customer-specific battery solutions for a variety of applications and, as a technology leader, sets industry standards in important areas. As the parent company of the group, it operates in the business segments "Lithium-Ion Solutions & Microbatteries" and "Household Batteries".
31.03.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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