Valeo achieves its 2022 objectives and accelerates in electrification and ADAS
- Sales of 20,037 million euros, up by 16%
- Acceleration in ADAS (up 29% LFL) and electrification (up 32 % LFL)
- Outperformance of original equipment sales in all production regions: 3 percentage points worldwide
- Strong growth in sales for the aftermarket, up 9% LFL
- EBITDA and EBIT margins at 12.0% and 3.2 % of sales, respectively
- Free cash flow of 388 million euros
- Strong business momentum (order intake up 48% to 32.6 billion euros), confirming Valeo’s growth prospects in electrification and ADAS
- Reduction in greenhouse gas emissions in line with the “CAP 50” carbon neutrality roadmap
- 2022 dividend of €0.38 per share to be proposed to shareholders at the next Shareholders’ Meeting
- Strong growth expected in 2023, with an improved operating margin in line with the Move Up strategic plan
“Owing to the remarkable commitment of our teams, whom I would like to thank, we have achieved all of the financial objectives we set at the beginning of 2022 in a challenging environment marked by high inflation, the electronic components shortage, lockdown measures in China and the conflict in Ukraine.
Growth in our original equipment sales outperformed automotive production in all regions, our EBIT and EBITDA margins, at 3.2 % and 12.0% of sales, respectively, are in line with the guidance published in February 2022, and our free cash flow generation of 388 million euros is above expectations. We are particularly pleased with our order intake, up 48% compared to 2021, including several particularly strategic orders in electrification and ADAS.
This performance attests to the successful first-year implementation of our Move Up strategic plan, and confirms our strong growth prospects in electrification and ADAS.
Leveraging the acceleration in these two sustainable mobility megatrends, we are targeting strong year-on-year sales growth in 2023. We will also aim to curb the impact of inflation through the combined effect of our productivity and cost reduction measures and the price increases passed on to our customers. Against this backdrop, we are targeting sales of between 22 and 23 billion euros, an improved operating margin of between 3.2 and 4.0% and a free cash flow generation of over 320 million euros, with a significant improvement in our financial performance in the second half of the year.”
Christophe Périllat, Valeo’s Chief Executive Officer