Automotive supplier Hella (Lippstadt, Germany; www.hella.com) seems to be getting back on track. In the first half of 2023, the company – operating under the Forvia umbrella brand since its acquisition by Faurecia – increased sales by 17% year-on-year to EUR 4 bn. The operating result went up by 76% to EUR 245 mn, the company reports. Hella also generated a positive net cash flow again, EUR 89 mn after 2022’s minus of EUR 8 mn.

Hella points out that sales growth exceeded the increase in global vehicle production by 6 percentage points. “We have had a very successful first half of the year,” said CEO Michel Favre. “After a low prior-year figure due to inflation and the pandemic, we have significantly improved profitability. On the one hand, we were benefiting from higher business volumes and, on the other, we were able to successfully manage price increases and pass them to our customers.”

Related: Hella’s sales decline less than global vehicle production

All business areas achieved double-digit increases in turnover. The largest increase was recorded by the Lighting business unit, which drove up revenues by 23% to EUR 2 bn, following increased production volumes and ramp-ups for new vehicle models. What’s more, the division returned to profit with an operating result of EUR 64 mn after a loss of EUR 3 mn a year earlier. The Electronics segment benefited from high demand for products for automated driving and electromobility. As a result, revenues climbed by 14% to EUR 1.7 bn and the operating result by a quarter to EUR 109 mn. Meanwhile, the spare parts, workshops and commercial vehicles business, Lifecycle Solutions, increased turnover by 10% to EUR 551 mn and its result by 28% to EUR 74 mn. 

“We are currently on track to achieve our annual targets and confirm our corporate outlook,” Favre concluded. For full year 2023, Hella expects currency- and portfolio-adjusted revenues of EUR 8 bn to 8.5 bn. The forecast for the operating margin also remained unchanged at 5.5% to 7%. However, the company’s management concretised its expectations somewhat: both the adjusted turnover and the operating result are now expected to be in the middle of the forecast ranges, according to the company.