Because of the corona consequences
Battery company Varta lowers sales forecast
For 2021, Varta expects sales to increase by 3.5 percent to 900 million instead of 940 million euros. Photo: Marijan Murat / dpa
© dpa-infocom GmbH
The business with wireless devices such as headphones has given Varta momentum. But the company also wants to grow in other areas and is initially investing a lot of money.
The battery company Varta is lowering its annual outlook due to restrictions as a result of the pandemic. Some customers are affected by delays in the delivery of raw materials or semiconductors, said Varta.
Some would have also interrupted their production due to lockdowns in Asia. In addition, the delayed start of new customer projects had a negative impact. Against this background, the nine-month figures are below market expectations.
For 2021, Varta expects sales to increase by 3.5 percent to 900 million instead of 940 million euros. Around 30 percent of sales are expected to remain in the form of adjusted operating earnings (Ebitda), which corresponds to around 275 million euros. More details on the outlook should be available when the figures for the third quarter are presented on November 11th.
Varta is particularly strong when it comes to lithium-ion button cells for wireless headphones and hearing aids. However, the group has also had the household batteries with the brand name Varta in-house since the beginning of 2020. Varta also produces wall boxes and other energy storage devices. For some time now, the company has also been anticipating growing opportunities with battery cells for electric cars.
With a view to the e-mobility business, the MDax group wants to invest first. “In the 2022 and 2023 financial years, the company is preparing for a major growth offensive with the newly developed, ultra-high-performance V4Drive cell and entry into the e-mobility business,” the statement said. To this end, a lot is invested in employee qualification, the hiring of personnel and in production facilities. The first sales and earnings contributions from this business area are expected from 2024.
Against this background, the adjusted operating profit will likely grow more slowly than sales in the next two years, it said. In terms of sales, management expects an increase of around 100 million euros each for 2022 and 2023. Varta could therefore crack the billion in sales in 2022. However, analysts’ estimates for the next two years were higher.