AKWEL Reports €989M in Revenue Amidst Industry Challenges
AKWEL's Financial Performance in 2024
AKWEL, a prominent manufacturer of components and systems for the automotive and heavy-vehicle sectors, has reported a consolidated revenue of €989.0 million for the fiscal year. This figure marks a decrease of 7.3% compared to the previous year's earnings. The company specializes in fluid management and is at the forefront of producing mechanisms and structural parts for electric vehicles, which is crucial as the automotive industry transitions towards sustainability.
Quarterly Breakdown of Revenue
The quarterly revenues showcase a continuing trend in 2024, with each quarter reflecting decreased sales figures. Here’s how the revenue looked throughout the year:
First Quarter Results
During the first quarter, AKWEL achieved €263.5 million in revenue, down from €274.6 million in 2023, representing a decline of 4.0%. This drop set a concerning tone early in the year.
Second Quarter Results
In the second quarter, revenue fell to €265.3 million, slightly down from €271.2 million in 2023, marking a decrease of 2.2%. This ongoing trend raised questions about market conditions and product demand.
Third Quarter Results
The third quarter saw a notable decline, with revenue falling to €228.9 million from €253.1 million in the same period the previous year, a significant decrease of 9.6%. This was indicative of the broader industry challenges faced during this period.
Fourth Quarter Results
Finally, the fourth quarter confirmed the persistent downturn, with revenue reported at €231.2 million. Compared to the previous year's €267.4 million, this reflected a sharp decrease of 13.5%. This culminated in the overall annual decline of 7.3% for AKWEL.
Impact of Market Dynamics
Throughout 2024, revenue evolution at constant scope and exchange rates revealed a 7.0% drop, although a positive foreign exchange impact of €2.2 million was noted. The disparity in market performance was particularly significant in France, where growth lagged behind global trends.
Product Line Performance Overview
The performance of AKWEL’s various product lines presented a mixed picture. While overall activity decreased, certain categories performed closely to expectations. Cooling and Air product lines reported minimal declines of 1.3% and 2.6% respectively, whereas Decontamination experienced a more profound decline of 24.4%. This drop was primarily due to the winding down of production on SCR tanks, scheduled to halt in 2025.
Financial Position and Future Outlook
AKWEL’s consolidated net cash position, excluding lease liabilities, was recorded at €145.0 million as of December 31, 2024. This marks an increase of €4.5 million since September 30, supported by €10.8 million in investments made in the last quarter. Despite these positive indicators, the declining activity trend accelerated in the latter half of the year, which is anticipated to affect the current operating margin for the group.
If current conditions persist in the global automotive market, which is facing economic uncertainties and evolving manufacturer strategies regarding electric versus internal combustion engines, AKWEL expects another year of decreased activity in 2025, mirroring the challenges seen in 2024.
About AKWEL
Founded as an independent family business, AKWEL operates on Euronext Paris and is widely recognized as a leader in the production of automotive and heavy-vehicle components. With expertise in fluid management and electric vehicle technology, AKWEL leverages superior industrial know-how across materials including plastic, rubber, and metal, alongside mechatronic integration.
Operating in 20 countries across five continents, AKWEL boasts a workforce of approximately 9,600 employees, making it a vital player in the global automotive landscape.
Frequently Asked Questions
What is AKWEL's revenue for 2024?
AKWEL reported a consolidated revenue of €989.0 million for the year 2024.
How did AKWEL's revenue compare to 2023?
The revenue for 2024 decreased by 7.3% compared to 2023.
What challenges is AKWEL facing currently?
AKWEL is facing challenges due to a weakened global automotive market and uncertainty regarding shifts between electric and internal combustion engines.
What is the future outlook for AKWEL?
AKWEL anticipates a continuation of decreasing activity comparable to 2024's performance into 2025.
Where does AKWEL operate?
AKWEL operates in 20 countries across five continents, employing around 9,600 people worldwide.
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