By Marilyn Gerlach

Sales and core profit at Spanish automotive components maker Teknia (Madrid; www.tekniagroup.com) shrank during the first half amidst delays in projects linked to electric vehicle production, but it managed to keep its profitability nearly flat year-on-year, thanks to cost adjustments.

Net profit slumped 43% to EUR 5.27 mn on the back of higher financial costs as well as negative impacts emanating from foreign exchange movements, according to Teknia, which supplies metal and plastics parts for vehicles. 

Turnover declined 3.8% to EUR 220.5 mn, but the earnings-before-interest-tax-depreciation-and-amortisation (EBITDA) did not fall as much due to cost adjustment measures. The core profit dipped 2.9% to EUR 23.4 mn, with Teknia eking out a 0.1 percentage point gain to nudge the profit margin to 10.6% versus the year-earlier’s 10.5% EBITDA ratio to revenue. The level of profitability was achieved in a “complex market context” where uncertainty about vehicle propulsion systems has prevailed, leading to delays in projects linked to electrification, Teknia said. 

Related: Sentiment among suppliers to Europe’s car industry declines on uncertain future

The Spanish company added that “despite delays in the launch of new electrification projects”, sales were still in line with the budget. The EBITDA profit was achieved given a “very challenging” environment of high costs, while production levels were dependent on electrification plans that have not materialised.

Teknia said it completed two transactions this year, part of implementing the Moving Teknia 2025 strategy programme launched last year to boost sales to more than EUR 600 mn by next year. It acquired Spanish blockchain technology specialist Xpander (Valencia; www.xpander.es) and created its first investment vehicle, Teknia Partners, to support start-ups in the new mobility sector.