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Revenue: Above EUR8 billion, a 1.3% increase at constant exchange rates.
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Net Income: EUR371 million, a 40% increase compared to 2023.
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Operating Income: 5.6% of sales.
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Net Cash Flow: EUR189 million, comparable to the previous year excluding factoring.
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Dividend Proposal: EUR106 million, EUR0.95 per share, representing 30% of net profit.
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Lighting Segment Sales Growth: 3.3% increase.
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Electronics Segment Sales: Decreased by 1.2%.
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Lifecycle Segment Sales: Decreased by 3.6%.
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Gross Margin: 23%, down from 23.7% last year.
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EBIT: 5.9%, slightly up from 5.8% last year.
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CapEx: EUR440 million, a 2% decrease from last year.
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Headcount Reduction: Reduced by around 2000 year-on-year.
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R&D Ratio: Reduced to 10% from 10.2% last year.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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HELLA GmbH & Co KGaA (HLKHF) achieved sales above EUR8 billion for the first time, outperforming the market by 240 basis points.
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Net income increased by 40% compared to 2023, reaching EUR371 million.
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The company proposes a continuation of its established dividend policy, with a dividend of EUR0.95 per share.
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HELLA GmbH & Co KGaA improved its sustainability ratings, achieving an A rating with CDP and targeting significant CO2 reductions.
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The company has been successful in winning new business in Asia and the Americas, with 74% of new business outside of Europe.
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The Electronics segment experienced a sales decline of 1.2%, affected by slow ramp-ups in the electrical market and negative product mix in China.
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Lifecycle Solutions showed a sales decline of 3.6%, impacted by low demand in Construction and Agricultural business.
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Operating income margin decreased slightly to 5.6% from 5.8% last year.
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The company faced higher R&D expenses in the Lighting segment due to new program launches.
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HELLA GmbH & Co KGaA’s cash flow decreased to EUR189 million from EUR205 million, partially due to higher tax payments.
Q: How has the Q1 trading been, considering the trends in Electronics and Lighting, and the workforce reduction? A: Bernard Schaferbarthold, CEO and CFO, stated that Electronics showed positive momentum, while Lighting experienced negative growth due to ramp-downs. Overall, Q1 sales were negative year-on-year, but operating income was within the guidance range, between the lower range and midpoint.
Q: Are there any implications for HELLA regarding potential disposals announced by the parent company? A: Bernard Schaferbarthold clarified that HELLA is not working on substantial portfolio changes. The focus remains on key products and strategic areas without questioning sizable business groups.
Q: Can you provide insights on HELLA’s position in China, particularly with local OEMs and product portfolio strengths? A: Bernard Schaferbarthold mentioned that 40% of sales are with Chinese OEMs, expected to increase. HELLA’s Lighting and Electronics products, especially in HD and display technologies, are in high demand among Chinese OEMs.
Q: Has the volatility in customer call-offs improved, and how is the CO2 regulation in Europe affecting customer behavior? A: Bernard Schaferbarthold noted that volatility remains high, with some delays in Europe. However, there is no significant change in customer behavior due to CO2 regulations as they are not yet law.
Q: How is HELLA handling potential tariffs between Mexico and the US, and what is the exposure from Europe to the US? A: Bernard Schaferbarthold explained that HELLA is mostly USMCA compliant, minimizing tariff impacts. For Europe to the US, potential tariffs on materials like copper are not significant, and the impact on cars is uncertain.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.