- Continued strong sales momentum with sales up 54% to €171.2
million
- Heavy Vehicles: another year of strong growth at €145.4
million, +65% vs. 2022
- Light vehicles: sales up to €25.8 million, +11% vs. 2022
- Diversification of customer portfolio with the signing of
new worldwide customers and extension of geographical coverage to
new markets (Japan, Australia)
- Significant profitability improvement: Adjusted EBITDA1 up
+48% to €-6.8 million vs. €-13.0 million in 2022
- Outlook 2024: focus on profitability
- Breakeven: Adjusted EBITDA1 at break-even point
- Annual sales target of between €180 and €200 million
- Launch of the production at the North American site at the end
of the 1st half of 2024
Regulatory News:
Forsee Power (FR0014005SB3 - FORSEE - the "Company")
(Paris:FORSEE), expert in smart battery systems for sustainable
electromobility, today announces its financial results for 2023,
approved by the Board of Directors on April 23, 2024.
Christophe Gurtner, Founder & CEO of Forsee Power
states: "Forsee Power succeeded in maintaining strong sales growth
throughout 2023, benefiting from the excellent momentum in the
heavy vehicles segment. With annual sales of over €170 million, we
not only outperformed our €160 million target but also expanded our
customer portfolio through strategic partnerships, notably in Japan
and Australia. This diversification will begin to generate volume
in early 2025. Another reason for satisfaction is the improvement
in the Company's profitability profile, with Adjusted EBITDA1 in
2023 rising sharply.
At the same timel with sales development, the Company's main
focus will be to continue to keep costs under control to reach
break-even by 2024. Finally, the North American site will start
production by the end of June, in line with the Company's
industrial roadmap. Profitable by 2024, and strengthened by market
restructuring, Forsee Power continues to consolidate its position
as a key player in the battery systems market.”
Annual results 2023
Adjustment of Forsee Power's key performance
indicators
In some specific cases, the Group is contractually obligated to
take responsibility for the collection and recycling of batteries
at the end of the warranty period. A provision is set aside to
cover the estimated costs of future recycling of battery systems
sold. This provision is calculated based on the number of systems
sold covered by the take-back requirement and valued according to
the external costs of recycling different types of batteries. Its
calculation is therefore theoretical and its future impact is
uncertain and uncontrollable due to market and technological
developments. What's more, a second-life market is opening up,
making it possible to turn an estimated potential cost into
additional revenue for the Group.
Accordingly, the Group has changed its definition of Adjusted
EBITDA2 in 2023 by reclassifying the non-cash recycling provision
to the current operating income. As a result, Adjusted EBITDA2 now
corresponds to the current operating income, restated:
- amortization and depreciation of intangible assets,
amortization of rights of use on property, plant and
equipment;
- depreciation and amortization of property, plant, and
equipment, and net impairment of inventories and receivables;
- cost of share-based payments and related employer
contributions;
- provision for battery recycling.
Simplified consolidated income statement
The audit procedures on the consolidated financial statements
have been completed, and the certification report will be issued
once the verification of the management report and the due
diligence relating to the electronic ESEF format of the 2023
financial statements have been finalized.
En €m
2023
2022
Change (%)
Sales figures
171.2
111.0
+54%
Heavy vehicles
145.4
87.8
+65%
Light vehicles
25.8
23.2
+11%
Adjusted EBITDA2
(6.8)
(13.0)
+48%
Adjusted EBITDA margin2
(4)%
(12)%
+8 pts
Current operating income
(23.2)
(30.1)
+23%
Financial result
(4.7)
(1.7)
-171%
Consolidated net income
(28.0)
(32.6)
+14%
Forsee Power reported 2023 sales of €171.2 million, up 54% from
2022. This good sales performance is the result of sustained
overall demand, particularly in the heavy vehicles segment (+65%
vs. 2022). Sales in the light vehicle segment are up by +11% vs.
2022.
The Group's Adjusted EBITDA2 is also up sharply, from (13,0)
million euros in 2022 to (6,8) million euros in 2023. Against this
backdrop, the Adjusted EBITDA2 margin fell from (12)% in 2022 to
(4)% in 2023. This improvement is mainly due to :
- improved productivity due to both higher margins and higher
sales volumes (+54%);
- greater capitalization of development costs;
However, it was affected by the cost of the structure in the
United States (€1.7 million) and the opening of the office in Japan
(€0.5 million).
The rail business, which has a longer development cycle than the
other sectors, accounts for €(2.1) million of EBITDA in 2023. The
first significant sales are expected in 2025.
The current operating income amounted to €(23.2) million, a
significant improvement compared to 2022 (+23%).
Taking into account all the items mentioned above, the company
posted a net loss of €(28.0) million for 2023.
Simplified consolidated balance sheet
In €m
31/12/2023
31/12/2022
Change
Non-current assets
68.2
49.5
+38%
Current assets
119.3
97.0
+23%
Total assets
187.4
146.5
+28%
Shareholders' equity
59.2
39.7
+49%
Non-current liabilities
76.1
67.4
+13%
Current liabilities
52.1
39.4
+32%
Total liabilities
187.4
146.5
+28%
Simplified consolidated cash-flow statement
In €m
2023
2022
Change
Cash flow from operating
activities
(27.3)
(24.5)
-2.8
Cash flow from investing
activities
(24.5)
(9.1)
-15.4
Cash flow from financing
activities
46.8
(6.0)
+52.8
Impact of conversion rates
(0.1)
(0.1)
Change in cash and cash
equivalents
(5.1)
(39.8)
+34.7
A solid financial structure
As of December 31, 2023, the Group had available cash of €25.9
million, compared with €31.0 million on December 31, 2022. As a
reminder, the Company carried out a €49.3 million capital increase
in May 2023.
Gross financial debt was relatively stable at €67.1 million on
December 31, 2023, compared with €60.2 million on December 31,
2022. On December 31, 2023, Forsee Power had a solid balance sheet,
with shareholders' equity of €59.2 million, compared with €39.7
million on December 31, 2022.
Given these factors and the implementation of working capital
financing tools, the Group believes it has sufficient financial
resources for the next 12 months.
Strategy and outlook
In 2024, Forsee Power intends to maintain dynamic activity by
transforming its order book into sales in its high-value-added
priority markets: buses, off-highway vehicles (agricultural,
construction, and industrial vehicles), railways, and light
vehicles.
In addition, sales in 2024 will benefit from the diversification
of the customer portfolio across all geographies. However, the
Company will be impacted in the short term by the progressive
reduction of battery sales to its customer Iveco.
In addition, the battery industry is currently facing a sharp
drop in material costs, which will impact on 2024 H2 sales. This
drop in costs should also stimulate demand and accelerate certain
programs in the coming months, against a backdrop of market
consolidation that will benefit Forsee Power's position as a
benchmark player in all the geographies where the Group
operates.
Overall, the Company expects to generate annual sales of between
€180 and €200 million.
Growth drivers, in particular the strong development with
Japanese customers, in Australia and the effective launch of the
North American industrial site planned over the next few months
(the first batteries were assembled at the beginning of April
2024), will ensure continued diversification of customer references
and further growth in 2025.
At the same time, Forsee Power will focus on continuing to
improve its profitability metrics, favoring a healthy growth
trajectory. The Company thus confirms its target to reach breakeven
by 2024, thanks to rigorous management of its cost base and
accelerated product development cycles.
Given the lack of maturity of markets still in the start-up
phase, the Group has decided to suspend the targets for 2028
previously communicated3, without this calling into question the
Company's growth prospects or the relevance of its strategy, which
is focused on a profitable growth trajectory.
Next financial release: 1st quarter 2024 sales, on May
14, 2024, before the stock market opens. The Annual General Meeting
will be held on June 21, 2024.
The Company's financial statements for the year ended 31
December 2023 will be disclosed in the Universal Registration
Document, which will be available to shareholders on the Company's
website by 30 April 2024 at the latest, in compliance with legal
and regulatory requirements.
About Forsee Power
Forsee Power is a French industrial group specializing in smart
battery systems for sustainable electric transport (light vehicles,
off-highway vehicles, buses, trucks, and trains). A major player in
Europe, Asia, and North America, the Group designs, assembles, and
supplies energy management systems based on cells that are among
the most robust in the market and provides installation,
commissioning, and maintenance on site and remotely. More than
3,000 buses and 135,000 LEV have been equipped with Forsee Power’s
batteries. The Group also offers financing solutions (battery
leasing) and second-life solutions for transport batteries. Forsee
Power and its 750 employees are committed to sustainable
development and the Group has obtained the Gold medal from leading
sustainability rating agency EcoVadis. For more information:
www.forseepower.com | @ForseePower
______________
1The Group changed its definition of Adjusted EBITDA in 2023
(see dedicated paragraph). Under the new definition, adjusted
EBITDA for 2022 would be (13.0) million euros, compared with (13.9)
million euros on a reported basis. Under the old definition,
adjusted EBITDA for 2023 would be €(7.6) million.
2 The Group changed its definition of Adjusted EBITDA in 2023
(see dedicated paragraph). Under this new definition, Adjusted
EBITDA for the 2022 financial year stands at (13,0) million euros,
compared with (13,9) million euros on a reported basis. Under the
old definition, adjusted EBITDA for 2023 would be €(7.6)
million.
3 As a reminder, in 2022 the Group has set the following
medium-term targets for 2028: sales over €850 million and an
adjusted EBITDA margin over 15%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240423259726/en/
Forsee Power Sophie Tricaud VP Corporate affairs and
Sustainability investors@forseepower.com
NewCap Thomas Grojean Investor Relations
forseepower@newcap.eu +33 (0)1 44 71 94 94
NewCap Nicolas Merigeau Media Relations
forseepower@newcap.eu +33 (0)1 44 71 94 98
Grafico Azioni Forsee Power (EU:FORSE)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Forsee Power (EU:FORSE)
Storico
Da Gen 2024 a Gen 2025
