(AOF) – Akwel, an equipment and system supplier for the automotive and heavy goods vehicle industry, recorded consolidated sales of 739.2 million euros in the first nine months of 2022, up by 5.7% compared to the same period in 2021. It recorded consolidated revenue of 251.1 million euros in the third quarter of 2022, up 18.7% as reported compared to the financial year previous year, and 22.3% at constant scope and exchange rates. In a still difficult market context, the group confirms the gradual recovery of its activity.
But still remains down -3.3% compared to the third quarter of 2019, before the health crisis.
Over the first nine months of the financial year, sales at constant scope and exchange rates increased by 10.2%.
Over this period, revenue from Products and Functions increased by +6.2% to €714.4 million, and all product lines showed growth, with performance driven in particular by Cooling (+13.4%), Washing (+8.5%) and Air (+6.9%) activities. Turnover for Tools reached 15.4 million euros over the period.
Free cash flow generation was 6.6 million euros in the third quarter, allowing the group to have 112.6 million euros in net cash (excluding debts on rental obligations), an increase of 14. 3 million euros over the first nine months of the financial year.
Given the performance recorded in the third quarter, Akwel confirms its expectation of a moderate growth in its turnover for the whole of the 2022 financial year. Regarding profitability, the still present supply difficulties and inflation recorded on all operating costs, which is difficult to pass on in the short term, will lead, as announced, to a significant drop in the group’s annual current operating profit.
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Negotiations with builders
On average, equipment manufacturers represent between 60 and 85% of the manufacturing cost of a vehicle. According to the Federation of Vehicle Equipment Industries (Fiev), negotiations are very tense with manufacturers regarding the passing on of increased costs. The price increases concern both electronic components, raw materials, such as steel, nickel, lithium or palladium, energy and transport. Equipment manufacturers mainly negotiate with Stellantis and Renault to set up indices to pass on increases. They are also betting on innovation, differentiation, upgrading and internationalization.