Gestamp Comes Out Of Losses Until September, With A Profit Of 101 Million

The Basque automotive components company Gestamp closed the first three quarters of the year with a net profit of 101 million euros, compared to the losses of 92 million that it registered in the same period of the previous year.

In the third quarter of the year, the company achieved a profit of 66 million euros, which is 37.1% less in the interannual rate.

The multinational’s revenues between January and September have reached 5,879 million euros, representing an increase of 19.5% at constant exchange rates (15.6% in reported terms), surpassing the world vehicle production market by 11.5 percentage points, in weighted terms (10 percentage points in reported terms). On the other hand, the multinational has increased its EBITDA margin by 2.8 percentage points, reaching 11.9%.

The gross operating profit (ebitda) has reached 701 million euros, which is 52.3% more in the interannual rate. In the third quarter of the year, ebitda stood at 203 million euros, 16.8% less in the interannual rate. Gestamp’s EBITDA margin in the third quarter has been cut by 0.8 percentage points in the interannual rate, to 11.2%.

On the other hand, the company has reduced its net financial debt in the first nine months of the year by 300 million euros, which is 12.7% less in the interannual rate, to 2,048 million euros.

The leverage ratio has continued to improve, from 3.1x Net Debt / EBITDA in December 2020 to 2.2x in September 2021 (excluding IFRS 16).

Gestamp has achieved these results despite the high volatility of production volumes due to the shortage of semiconductors, which is expected to reduce global production in 2021 by 9 million vehicles.

Gestamp CEO Francisco J. Riberas has assured that they will continue to “focus on preserving profitability, generating cash flow and continuing to reduce net debt.”

Forecasts
Gestamp is focused on and committed to meeting its objectives announced for this year of outperforming the market by one middle digit (at constant exchange rates), reaching an EBITDA margin of more than 12%, maintaining a moderate capex profile below 6 , 5% of sales (excluding IFRS 16) and reduce its net debt by more than 100 million euros compared to fiscal year 2020 (excluding IFRS 16).

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