Valeo Q1 2024 Sales - First-quarter sales of 5.4 billion euros, up
2% like for like
PARISApril 25, 2024
First-quarter sales of 5.4 billion
euros, up 2% like for like2024 and 2025 objectives
reaffirmed
-
Sales of 5.4 billion euros, up 2% on a like-for-like basis
(LFL)
- Original equipment sales up
1% LFL
-
Outperformance of 2 percentage points versus automotive
production, after a slightly unfavorable geographic mix
- 7
percentage point outperformance for ADAS, 6 percentage point
outperformance for the Visibility Systems Business Group, 4
percentage point outperformance for the Thermal Systems Business
Group
- 9
percentage point outperformance for the traditional Powertrain
activities, partially offsetting the low level of activity in
high-voltage electrification. 5 percentage point underperformance
for the Powertrain Systems Business Group.
-
Aftermarket sales up 1% LFL
- New organization based on
three divisions, leading to a change in reporting from publication
of first-half 2024 results
- 2024 and 2025 objectives
reaffirmed, with margins and free cash flow generation in the
second half of 2024 expected to be higher than in the first
half
“Our first-quarter sales of 5.4 billion euros
reflect a solid start to 2024, thanks to the growth of all our
businesses, excluding high-voltage electrification.
The traditional Powertrain activities benefited
from the ramp-up in production in Europe, North America and China,
partially offsetting the low level of activity in high-voltage
electrification, which was penalized by an unfavorable basis for
comparison and a decline on certain platforms. The high-voltage
electrification activity should see improved business levels in the
second quarter.
Overall, the Group outperformed automotive
production by 2 percentage points, despite a slightly unfavorable
geographic mix over the quarter.
In addition, the merger of the Thermal Systems
and Powertrain Systems activities into a single division called
“Valeo Power” has been implemented. The Comfort & Driving
Assistance Systems and Visibility Systems Business Groups have been
renamed “Valeo Brain” and “Valeo Light”.
Finally, taking into account the prudent
production assumptions adopted as part of our Move Up plan, our
operating efficiency action plan, and our cost reduction measures
which are on track, we are reaffirming our 2024 and 2025
objectives.”
Christophe Périllat, Valeo’s Chief
Executive Officer
Sales of 5,427 million euros in
first-quarter 2024, up 2% like-for-like
|
Sales(in millions of euros) |
As a % of Q1 2024 sales |
|
Q1 2024 |
|
Q1 2023 |
Change |
FX |
Scope |
LFL* change |
|
Original equipment |
84 % |
|
4,554 |
|
4,637 |
-2 % |
-2 % |
-1 % |
+1 % |
|
Aftermarket |
11 % |
|
597 |
|
615 |
-3 % |
-4 % |
-1 % |
+1 % |
|
Miscellaneous |
5 % |
|
276 |
|
230 |
+20 % |
-2 % |
-2 % |
+24 % |
|
Total |
100 % |
|
5,427 |
|
5,482 |
-1
% |
-2
% |
-1
% |
+2
% |
* Like for like.
Automotive production contracted by 1% compared
to the same period in 2023, amid :
- a 4% rise in production in China,
due to a favorable basis for comparison linked to weak demand
following the easing of a strict zero-COVID policy at the end of
2022;
- a 2% fall in production in Europe,
due to an unfavorable basis for comparison linked to a low level of
new vehicle inventories and an increase in production volumes at
the start of 2023.
Total sales for first-quarter
2024 came in at 5,427 million euros, down 1 % compared with the
same period in 2023.
Changes in exchange rates had a negative 2.4%
impact, primarily due to the appreciation of the euro against the
Chinese yuan, the Japanese yen and the South Korean won.
Changes in Group structure had a negative 0.6 %
impact, mainly linked to the sale of the Ichikoh Mirror business in
Japan on August 1, 2023.
On a like-for-like basis, sales rose by 2 %.
Original equipment sales were
up 1 % on a like-for-like basis, driven by all of the Group's
businesses, excluding high-voltage electrification: Comfort &
Driving Assistance Systems Business Group up 4% (of which ADAS up
6%), Visibility Systems Business Group up 5% and Thermal Systems
Business Group up 3%. In the Powertrain Systems Business Group,
original equipment sales for the traditional businesses posted
growth of 8%. This partially offset the downturn in high-voltage
electrification on certain electric vehicle platforms, particularly
in Europe, and the unfavorable basis for comparison linked to
automakers building up inventories on these platforms in the first
half of 2023.
Aftermarket sales rose by 1 %
on a like-for-like basis compared with the prior-year period,
fueled by the increased number and age of vehicles on the road, a
more attractive offering with a shift towards more value-added
products (for example, transmissions systems kits).
“Miscellaneous” sales (tooling and customer contributions to
R&D) increased by 24 % like for like.
2 percentage point outperformance in
first-quarter 2024 vs global automotive production after a slightly
unfavorable geographic mix
|
Original equipment sales***(in millions of
euros) |
As a % of sales |
|
Q1 2024 |
|
Q1 2023 |
Change |
LFL* change |
Perf. ** |
|
Europe & Africa |
49 % |
|
2,215 |
|
2,293 |
-3 % |
-3 % |
-1 pt |
|
Asia, Middle East & Oceania |
29 % |
|
1,343 |
|
1,409 |
-5 % |
+4 % |
+5 pts |
| o/w Asia
(excluding China) |
15 % |
|
717 |
|
777 |
-8 % |
+2 % |
+8 pts |
|
o/w China |
14 % |
|
626 |
|
632 |
-1 % |
+6
% |
+2 pts |
|
North America |
20 % |
|
912 |
|
847 |
+8 % |
+9 % |
+8 pts |
|
South America |
2 % |
|
84 |
|
88 |
-5 % |
-7 % |
-1 pt |
|
Total |
100 % |
|
4,554 |
|
4,637 |
-2 % |
+1 % |
+2 pts |
* Like for like. ** Based on S&P Global
Mobility automotive production estimates released on April 16,
2024.*** Original equipment sales by destination region.
In first-quarter 2024, like-for-like growth in original
equipment sales outperformed the market by 2 percentage points,
taking into account a slightly unfavorable geographic mix.
- in Europe and
Africa, the Group underperformed global automotive
production by -1 percentage point: the Comfort & Driving
Assistance Systems Business Group reported strong growth in its
ADAS business (particularly front cameras and computer-vision
cameras) with a premium German automaker. The Powertrain Systems
Business Group was impacted by (i) a downturn on certain electric
vehicle platforms, particularly in Europe, and (ii) automakers
building up inventories on these platforms in the first half of
2023. The impact of the decline in the high-voltage electric
powertrain business was partially offset by growth in the
Powertrain Systems Business Group's traditional businesses, such as
transmission systems and 48V, linked to the ramp-up in production
for European automakers. The Thermal Systems Business Group's
performance was driven by the ramp-up in new cabin thermal
management systems contracts put into production for German
automakers, and the Visibility Systems Business Group was lifted by
production launches for several European automakers;
-
in Asia, the Group outperformed global automotive
production by 5 percentage points :
- in China, the Group outperformed
automotive production by 2 percentage points. Valeo is
repositioning its customer portfolio (more than 50% of 2023 orders
were with automakers in China, excluding JVs). The Thermal Systems
Business Group's performance was powered by the ramp-up in
production of electric vehicles for Chinese automakers. The
Visibility Systems Business Group is fully benefiting from recent
production launches for a North American automaker and several
Chinese automakers for electrification projects;
- in Asia, excluding China, Valeo
outperformed automotive production by 8 percentage points thanks to
the strong momentum of (i) the Comfort & Driving Assistance
Systems Business Group in ADAS with a South Korean automaker and
several Japanese automakers, and (ii) the Powertrain Systems
Business Group in traditional technologies for a South Korean
automaker;
- in North America,
Valeo outperformed automotive production by 8 percentage points.
The Powertrain Systems Business Group was lifted by the ramp-up in
production for a leading Japanese customer. The Thermal Systems
Business Group saw its activity boosted by the ramp-up in
production for cabin thermal management systems, notably for North
American customers. The Visibility Systems Business Group enjoyed
the full effects of the ramp-up in production of a new contract in
electrification for a North American automaker;
-
in South America, the Group underperformed
automotive production by 1 percentage point.
Segment reporting: further strong
momentum in all Group businesses, with the exception of the
high-voltage electrification business, which was affected by a
downturn on certain electric vehicle platforms, particularly in
Europe
|
Sales by Business Group(in millions of
euros) |
Q1 2024 |
|
Q1 2023 |
Change in sales |
Change in OE sales* |
Perf. ** |
|
Comfort & Driving Assistance Systems |
1,229 |
|
1,159 |
+6 % |
+4 % |
+5 pts |
|
Powertrain Systems |
1,635 |
|
1,741 |
-6 % |
-6 % |
-5 pts |
|
Thermal Systems |
1,150 |
|
1,145 |
— % |
+3 % |
+4 pts |
|
Visibility Systems |
1,415 |
|
1,376 |
+3 % |
+5 % |
+6 pts |
|
Other |
-2 |
|
61 |
N/A |
N/A |
N/A |
|
Group |
5,427 |
|
5,482 |
-1 % |
+1 % |
+2 pts |
* Like for like.** Based on S&P Global
Mobility automotive production estimates released on April 16,
2024. (Q1 2024 global production growth: -1%)
The sales performance for the Business Groups
reflects the specific product, geographic and customer mix and the
relative weighting of the aftermarket in their activity as a
whole.
The Comfort & Driving Assistance
Systems Business Group recorded an outperformance of 5
percentage points, thanks to strong growth – notably in Europe with
a premium German automaker and in Asia, excluding China (South
Korea and Japan) – for ADAS, particularly front cameras and
computer-vision cameras, strengthening its position as world
leader. Like-for-like original equipment sales were up by 6% for
ADAS and by 0% for the Reinvention of the Interior Experience
segment.
The traditional Powertrain activities
(transmission systems and 48V) delivered 8% like-for-like growth,
outperforming automotive production by 9 percentage points,
benefiting from the ramp-up in production for European automakers
in Europe, for a leading Japanese customer in North America, and in
China. This helped to mitigate the impact of the decline in the
high-voltage electric powertrain business (199 million euros in the
first quarter of 2024, compared with 362 million euros for the same
period in 2023), which was penalized by the decline on certain
electric vehicle platforms, notably in Europe, and by the
unfavorable basis for comparison linked to automakers building up
inventories on these platforms in 2023. The high-voltage
electrification activity should see improved business levels in the
second quarter. Overall, the Powertrain Systems Business
Group underperformed automotive production by 5 percentage
points over the quarter.
The Thermal Systems Business
Group outperformed automotive production by 4 percentage
points. In Europe, the Business Group's sales were buoyed by the
ramp-up in new contracts put into production for German automakers.
In North America, the Thermal Systems Business Group saw a good
level of activity with a North American customer. In China, the
Business Group's performance was driven by the ramp-up in
production in the area of electric vehicles for several Chinese
automakers.
The Visibility Systems Business
Group outperformed automotive production by 6 percentage
points. In Europe, the Business Group benefited from production
launches for lighting projects for several European automakers. In
China and North America, the Visibility Systems Business Group's
sales were driven by the recent production launch for a North
American automaker in the field of electrification. In China,
activity was boosted by the ramp-up in production for several
Chinese automakers in the area of electrification.
2024 and 2025 objectives reaffirmed
|
|
2023 (as reported) |
2024 guidance (a) (b) |
2025 objectives (b) |
Previous 2025 objectives(based on automotive
production of 98.5 million vehicles) |
|
Sales (in billions of euros) |
22.0 |
22.5 to 23.5 |
24.5 to 25.5 |
~ 27.5 |
|
EBITDA (as a % of sales) |
12.0% |
12.1 % to 13.1 % |
13.5 % to 14.5 % |
~ 14.5% |
|
Operating margin (as a % of sales) |
3.8% |
4.0 % to 5.0 % |
5.5 % to 6.5 % |
~ 6.5% |
|
Free cash flow before one-time exceptional cost
reduction measures
(in millions of euros) (c) |
_ |
~ 500 |
~ 800 |
_ |
|
Free cash flow after one-time exceptional cost
reduction
measures
(in millions of euros) (c) |
379 |
~ 350 |
~ 650 |
~ 800 - 1,000 |
(a) Second-half margins and free cash flow
generation higher than in the first half, thanks to higher
production volumes and efficiency gains.(b) For greater comfort,
figures are based on (i) light vehicle production 3% below the
S&P Global Mobility scenario released on February 16, 2024, and
(ii) stable sales in high-voltage electrification over the period
2023-2025.(c) Includes, but is not limited to, potential
restructuring measures.
Upcoming events
First-half 2024 results: July 25, 2024
Highlights
ESG
On January 2, Christophe
Perillat, CEO of Valeo, nominated Édouard de Pirey as Chief
Financial Officer. He takes over from Robert Charvier who, after 24
years with the Group, will retire. Click here
On March 27, Valeo informed its
shareholders that its Combined (ordinary and extraordinary) General
Shareholders' Meeting will be held on May 23, 2024. Click here
On April 3, Valeo announced
that it had published its 2023 Universal Registration Document.
Click here
On April 22, Valeo took a new
step towards electric mobility and announced its new Valeo Power
division. Click here
Industrial partnerships
Valeo took part in CES 2024 from January
8 to 12, during which it announced several
partnerships:
- On January 4,
Valeo and Teledyne FLIR announced that they had signed an agreement
and first contract for thermal imaging for automotive safety
systems. Click here
- On January 4,
Valeo and Sennheiser presented ImagIn: an immersive sound and light
experience in your car. Click here
- On January 4,
Valeo and Applied Intuition announced their partnership to provide
digital twin technology for ADAS simulation. Click here
- On January 8,
ZutaCore® and Valeo announced their first contract for innovative
data center cooling. Click here
On February 8, Dawex, Schneider
Electric, Valeo, CEA and Prosyst joined forces to create
Data4Industry-X, the trusted data exchange solution for industry.
Click here
Products/technologies and patents
On January 4, Valeo announced
expanded software capabilities in North America to support
increased demand. Click here
On January 8, Valeo announced
its acceleration in artificial intelligence thanks to Google Cloud
tools. Click here
From January 8 to 12, Valeo
took part in CES 2024, where it presented groundbreaking
innovations from its booth and from its live demonstration area
paving the way for affordable, greener, safer and more connected
mobility:
- On January 4,
Valeo presented the latest update of its Valeo Cyclee™ Mid-Drive
Unit solution with a new HMI and reduced noise and vibration at CES
2024. Click here
- On January 4, Valeo presented Ineez™ Air
Charging, its solution for wireless charging for electric vehicles.
Click here
On January 10, Valeo's Vsevolod
Vovkushevsky was named a MotorTrend Software Defined Vehicle
Innovator Awards Winner. Click here
On January 18, Mister-Auto integrated the Valeo
Canopy low-carbon-footprint wiper blade range. Click here
On January 23, Valeo was once
again ranked first among French patent applicants worldwide. Click
here
On January 25, Smart #3
equipped with Valeo Smart Safety 360 received 5 stars at Euro NCAP.
Click here
On February 1, Valeo was
certified ISO/SAE21434, the benchmark for automotive cybersecurity,
by UTAC. Click here
On February 21, Valeo announced
its participation in SXSW 2024. Click here
On February 26, Valeo announced
its participation at the Taipei Cycle Show 2024. Click here
On March 4, Valeo presented
Valeo Racer, a new extended reality in-car gaming experience
developed with Unity, at South by Southwest 2024. Click here
On March 6, Valeo announced
that it is Launch Partner for SDVerse, a new Automotive Software
Marketplace Click here
On March 28, Valeo announced
that it is taking the driver's seat on generative AI with Google
Cloud. Click here
On March 29, Valeo announced
the opening of a new plant in Daegu (South Korea) for the
production of Advanced Driver Assistance Systems. Click here
On April 17, Valeo announced it
was celebrating 30 years in China and showcasing its latest
technologies at Auto China – Beijing 2024. Click here
Financing activities and financial ratings
On March 11, Valeo announced
the implementation of its share buy-back program. Click here
On March 22, Moody's affirmed
Valeo’s “Baa3” long-term issuer rating, negative outlook, and “P3”
short-term issuer rating. Click here
On April 3, Standard &
Poor’s affirmed Valeo’s “BB+” long-term issuer rating, revising its
outlook from “stable” to “negative”. Click here
On April 4, Valeo announced a
green bond issue for an amount of 850 million euros with maturity
April 2030. Click here
Financial glossary
Operating margin including share in net
earnings of equity-accounted companies corresponds to
operating income before other income and expenses.
EBITDA corresponds to (i)
operating margin before depreciation, amortization and impairment
losses (included in the operating margin) and the impact of
government subsidies and grants on non-current assets, and (ii) net
dividends from equity-accounted companies.
Free cash flow corresponds to
net cash from operating activities (excluding changes in
non-recurring sales of receivables and net payments for the
principal portion of lease liabilities) after taking into account
acquisitions and disposals of property, plant and equipment and
intangible assets.
Safe Harbor Statement
Statements contained in this document which,
when they are not historical fact, constitute “forward-looking
statements”. These statements include projections and estimates and
their underlying assumptions, statements regarding projects,
objectives, intentions and expectations with respect to future
financial results, events, operations, services, and product
development and potential and future performance. Even though
Valeo’s Management feels that the forward-looking statements are
reasonable as at the date of this document, investors are put on
notice that the forward-looking statements are subject to numerous
factors, risks and uncertainties that are difficult to predict and
generally beyond Valeo’s control, which could cause actual results
and events to differ materially from those expressed or projected
in the forward-looking statements. Such factors include, among
others, the Company’s ability to generate cost savings or
manufacturing efficiencies to offset negotiated or imposed price
reductions. The risks and uncertainties to which Valeo is exposed
mainly comprise the risks resulting from the investigations
currently being carried out by the antitrust authorities as
identified in the Universal Registration Document, risks related to
the automotive equipment industry and to the development and launch
of new products and risks due to certain global and regional
economic conditions, environmental and industrial risks as well as
risks and uncertainties described or identified in the public
documents submitted by Valeo to the French financial markets
authority (Autorité des marchés financiers – AMF), including those
set out in the “Risk Factors” section of the 2023 Universal
Registration Document registered with the AMF on March 29, 2024
(under number D.24-0218).
In addition, other risks which are currently
unidentified or considered to be non-material by the Group, could
have the same adverse impact and investors could lose all or part
of their investment. Forward-looking statements are given only as
at the date of this document and Valeo does not undertake to update
the forward-looking statements to reflect events or circumstances
which occur subsequent to the publication of this document. Valeo
assumes no responsibility for any analyses issued by analysts and
any other information prepared by third parties which may be used
in this document. Valeo neither intends to review, nor will it
confirm, any estimates issued by analysts.
About ValeoAs a technology company and partner to all automakers
and new mobility players, Valeo is innovating to make mobility
cleaner, safer and smarter. Valeo enjoys technological and
industrial leadership in electrification, driving assistance
systems, reinvention of the interior experience and lighting
everywhere. These four areas, vital to the transformation of
mobility, are the Group's growth drivers.Valeo in figures: 22
billion euros in sales in 2023 | 112,700 employees at December 31,
2023 | 29 countries, 175 plants, 66 research and development
centers, 20 distribution platforms.Valeo is listed on the Paris
Stock Exchange.
Media RelationsDora Khosrof | +33 7 61
52 82 75Caroline De Gezelle | + 33 7 62 44 17
85press-contact.mailbox@valeo.com
Investor Relations+33 1 40 55 37
93valeo.corporateaccess.mailbox@valeo.com
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