Akwel Anticipates Minor Sales Drop For Current Fiscal Year

KUALA LUMPUR, Sept 23 (Bernama) -- AKWEL, the automotive and heavy goods vehicle (HGV) components manufacturer, has posted a net income of 20.2 million euros, giving a net margin of 3.8 per cent for the first half of 2024. (1 euro = RM4.68)

Meanwhile, revenue for the first half decreased 3.1 per cent to 528.8 million euros from 533.2 million euros, same period a year ago, after a positive currency impact of 2.0 million euros, according to a statement.

The group's sales declined more sharply in France by 13.5 per cent, and Europe excluding France (1.6 per cent), but remained more buoyant in North America (4.4 per cent) and Asia (0.5 per cent).

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While the upward pressure on energy and raw materials costs is less severe than in 2023, the ability to pass on increases to customers proved more complex in the first half whereby pressure on labour costs remains very high and is weighing on the group's operating profitability.

Against this backdrop, EBITDA fell by 1.3 per cent to 49.2 million euros, while operating income recurring declined by 21.6 per cent to 24.4 million euros, giving an operating margin on sales of 4.6 per cent.

Capital expenditure for the half-year was 23.8 million euros, compared with 22.9 million euros in the same period last year, and working capital remained stable.

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In view of the first-half performance, the declining outlook for the global market and over-stocking by certain automakers, AKWEL anticipates a slight decline in sales for the current financial year.

In a changing automotive market, the major investments made by the group in recent years have given AKWEL an agile industrial base with enhanced technical capabilities, able to adapt effectively to the uncertain evolution between electric and hybrid powertrains, and internal combustion engines.

-- BERNAMA