Varta AG, based in Nördlingen, continues to increase its sales. The company has now announced this. Nevertheless, the political situation after the Russian attack on Ukraine clouds further developments.
According to the latest business figures, Varta’s consolidated sales increased by 3.8 percent to EUR 902.9 million in the 2021 financial year. Meanwhile, adjusted EBITDA rose by around 17 percent to EUR 282.9 million. Group profit reached EUR 126 million, an increase of 31.9 percent. For 2022, the technology company expects sales of between 950 million and one billion euros and an adjusted EBITDA of between 260 and 28 million euros.
Two crises cloud the prospects
However, the ongoing consequences of the Covid-19 pandemic and the effects of the Ukraine war on the global production and supply chains of some customers as well as the rising commodity prices as a result of these crises are weighing on the outlook. Herbert Schein, CEO of Varta AG, explained: “We have another very good year behind us, in which we were not only able to further increase our sales, but also achieved historic results in terms of profitability. We are well positioned for future growth in small lithium-ion cells.”
He also added: “We have already started the next growth offensive. Our large-format lithium-ion high-performance round cells have great potential. We have been supplying cells from pilot production for one customer since the end of 2021. Our batteries make a difference. That is why there is a very high demand.”
That’s what the Varta CFO says about the developments
Armin Hessenberger, Chief Financial Officer (CFO) of Varta AG, on the other hand, explained the current business situation: “The current global situation due to the ongoing consequences of Covid-19 and the Ukraine war are affecting raw material prices and the availability of components at our customers. We can therefore not rule out an impact on our business. Nevertheless, with the cash flow from ongoing business and the high equity ratio of 42.6 percent, Varta AG is in a solid position to finance future investments.”