Saying full yr outcomes for 2020, steel elements provider Gestamp stated it had decreased its web debt by EUR271m to EUR2,058m, including it was “proving its resilience, means to react quick and the energy of its enterprise mannequin”.
In an announcement, the corporate described 2020 as “a yr of two halves” because it applied COVID emergency associated measures within the first half and executed value management measures within the second “even with a pick-up in quantity”.
“The group will proceed to give attention to FCF and the execution of the transformation plan, with the goal of reaching the 13% EBITDA margin goal by 2022,” Gestamp added.
Full yr group income fell 17.8% yr on yr to EUR7,546m, down 13.6% adjusted for foreign money trade results.
“This represents a 7.8 [percentage point] outperformance versus the worldwide auto manufacturing market,” Gestamp claimed.
It stated the group had outpaced the market in all its markets final yr.
EBITDA was all the way down to EUR757m from EUR1,027m.
The provider booked a web lack of EUR71m final yr versus a EUR212m revenue in 2019.
“The market has skilled two totally different dynamics: the Chinese language with a lot of the influence going down in February however with a powerful restoration in H2 and the European and US one with robust quantity decreases throughout April on account of widespread plant closures after which a slower quantity restoration throughout H2.”
Throughout H2 2020, the group reached an EBITDA margin of 12.3% versus 12.1% in H2 2019. The implementation of value discount measures and debt management, together with strict capex discount and give attention to working capital administration, led to a EUR271m web debt discount to EUR2,058m in 2020 versus EUR2,329m.
Regardless of experiencing a troublesome yr, Gestamp managed to attain its full yr 2020 steerage targets introduced in July 2020 and up to date final October. Web debt was effectively under 2019 ranges, EBITDA margin above the high quality of 9-10% (excluding restructuring prices) and capex was round.
2021 steerage
Throughout 2021, Gestamp expects income to outperform the worldwide auto manufacturing market by a “mid-single digit”.
“The continued give attention to executing the transformation plan will enable the Group to succeed in an EBITDA margin above 12% by the tip of 2021. Capex for 2021 is predicted to be at [circa] 7% of income and web debt to be under EUR2bn.
“All efforts might be consistent with the target of reaching a 13% EBITDA margin goal by 2022, which might be pushed by enchancment of volumes just like 2019 ranges, discount of mounted value construction, operational stabilisation and contribution from business 4.0 initiatives.
Chairman Francisco Riberas stated: “In an unprecedented market setting we’ve got moved quick and demonstrated our resilient enterprise mannequin by preserving our stability sheet and producing constructive FCF, as we already did within the 2008-2009 disaster.
“Gestamp will proceed to develop with the give attention to FCF technology by benefiting from its invested capital and new applied sciences, supporting the wants of our clients of their street in direction of electrification,” Riberas added.
