EQS-News

FRIWO AG: FRIWO adjusts annual outlook based on declining demand – Joint venture in India on track following start of production

EQS-News: FRIWO AG / Key word(s): Forecast/Change in Forecast FRIWO AG: FRIWO adjusts annual outlook based on declining demand – Joint venture in India on track following start of production 07.07.2023 / 08:45 CET/CEST The issuer is solely responsible for the content of this announcement. FRIWO adjusts annual outlook based on declining demand – Joint venture in India on track following start of production

• Considerable decline in demand in Europe, especially in the e-mobility segment after boom year 2022
• Turnover and earnings in the second quarter noticeably below previous year's level
• Additional negative impact due to start-up costs for India joint venture and adverse currency effects
• Outlook 2023 adjusted: Group revenue of 120 - 130 million euros and balanced EBIT expected
• E-mobility joint venture in India on track after start of production, high order backlog promises great earnings potential from 2024 onwards

Ostbevern, 7 July 2023 – FRIWO - an international manufacturer of leading technical charging devices and e-drive solutions - has to adjust its full-year forecast for 2023 against the backdrop of a noticeable drop in demand in Europe, especially from the e-mobility segment. After the booming year of 2022, the company had already anticipated a significantly more subdued development and at the end of March 2023 published a revenue forecast corresponding to 140 - 160 million euros (2022: 185 million euros) with a slight increase in profitability. Following a significantly lower development in the second quarter compared to the previous year, the company's Executive Board has now reduced the annual targets for this financial year to 120 - 130 million euros revenue and a balanced EBIT (earnings before interest and taxes). This includes substantial costs for the start-up of the India joint venture and adverse currency effects.
 

General trend towards more e-mobility solutions continues

Based on a solid order backlog, FRIWO expects the development of demand from the e-mobility sector to pick up slightly in the second half of the year compared to the first half. In view of a continuing positive trend towards e-mobility drive solutions, FRIWO also expects a return to sustainable profitable growth from 2024. The Tools and Industrial segments are also affected by the poor economic development in Europe in 2023. Only the Medical segment is developing in line with the plans. In the medium term, however, the Executive Board believes that the growth trends in all segments of the Group are intact.