In This Article:
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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.
Positive Points
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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.
Negative Points
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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 & A Highlights
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.