Earnings Call Summary | FUCHS SE UNSP ADR EACH REP 0.25 PRF SHS(FUPBY.US) Q4 2023 Earnings Conference

moomoo AI ·  Mar 12 16:17  · Conference Call

The following is a summary of the Fuchs SE (FUPBY) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Fuchs SE reported an annual sales increase of 4% and a 13% rise in EBIT.

  • EBIT margin improved to 11.7%, over 1 percentage point above the previous year.

  • The company boasted record free cash flow at €465 million, mainly due to significant impacts from working capital and slightly lower raw material costs.

  • Gross profit rose nearly 9%, and EBIT margin surged to 11.7%, despite currency impacts.

  • Proposed a dividend increase of €0.04 per share.

  • Investment remained consistent with previous years, at around €80 million.

  • The company responded proactively to raw material price dynamics throughout the year.

  • The outlook for 2024 foresees increases in sales volume and EBIT, but a normalization in free cash flow to a cash conversion rate of about 0.8.

Business Progress:

  • Fuchs SE is expanding worldwide infrastructure, with new operating companies appearing in Chile, Romania, and Vietnam.

  • Established partnerships with global key players like DMG Mori, Hitachi Astemo, and John Deere.

  • The company sees potential in the EV market and intensifies its customer segmentation.

  • Working on its Fuchs 100 project, a successor of its strategic plan, Fuchs 2025.

  • Remarks about a continuation of its share buyback program.

  • Anticipates major steps to be taken in 2025, predicting recovery of various economies.

  • Actively working on potential acquisitions and pursuing operational excellence levels, including the S/4 project.

  • For 2025, Fuchs SE is targeting mid-single-digit revenue growth, two-thirds of which is expected to be volume and one-third is expected to be pricing.

  • To achieve growth in the Americas and Asia-Pacific, the company is deploying a segmentation approach, focusing on various industries.


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