Vantiva: Q3 & 9M 2023 Revenues

Press Release Q3 & 9M 2023 Revenues In a context of weak market demand, 2023 guidance maintained for Ebitda and Ebita but adjusted down for free cash flow (FCF) 1. Revenues down 38% in Q3.Visibility limited for 2024.Paris (France), October 26th, 2023 –Vantiva (Euronext Paris: VANTI) is today announcing its unaudited Q3 2023 revenues. Thanks to strict operational efficiency and despite anticipated adverse market conditions in Q3, the guidance is maintained for EBITDA...

Paris, 26/10/2023 (informazione.news - comunicati stampa - editoria e media)

Press Release

Q3 & 9M 2023 Revenues
In a context of weak market demand, 2023 guidance maintained for Ebitda and Ebita but adjusted down for free cash flow (FCF) .
Revenues down 38% in Q3.
Visibility limited for 2024.

Paris (France), October 26th, 2023 – Vantiva (Euronext Paris: VANTI) is today announcing its unaudited Q3 2023 revenues.
Thanks to strict operational efficiency and despite anticipated adverse market conditions in Q3, the guidance is maintained for EBITDA and EBITA. FCF is expected to be positive, but lower than the previous guidance, mainly because of developments in working capital.
On a challenging base of comparison for Connected Home, Vantiva experienced a 38% revenue decline in the quarter due to decreasing market demand.
Visibility for 2024 is limited, but first indications demonstrate a need for prudency about the market development.

The group's revenues amounted to €473m in the quarter, down 38% (-34% at constant exchange rate).

Luis Martinez-Amago, Chief Executive Officer of Vantiva, said:

“Our solid operating performance and continuing efficiencies are allowing us to confirm our guidance for EBITDA for the year. This is being achieved in a market with weaker demand from our customers due to the overall macroeconomic conditions, as previously communicated. Performance is nevertheless still in the range of our scenarios. The FCF will be lower than the guidance due to the timing of revenues within Q4 for Connected Home.
We expect the market to remain weak in 2024. However, with the announced agreement to acquire CommScope's Home Division, we are in a perfect position to reinforce our operational performance from a customer perspective, and from an efficiency and productivity perspective. We anticipate that a sizeable amount of synergies will be realized, which will improve our profitability and performance over the coming years. We continue to believe in the mid to long term attractiveness of our markets, and we keep investing in making Vantiva a leading player of the industry.”

Q3 2023 Key Highlights   

The deterioration of the economic environment worldwide, together with the rise in inflation and in interest rates explain the sharp fall in demand in our main markets. This, combined with high levels of inventories, led our clients to cut, or at least to postpone, their orders. Both divisions have been significantly impacted by this negative trend and showed decreasing revenues in the quarter on high base of comparison. The revenue trend and the change of timing for some orders have penalized the development of our working capital, and in consequence our liquidity situation has been negatively impacted. A new financing of €85m, maturing in March 2024, has been put in place in October to meet this temporary liquidity need.

Outlook
Thanks to the continuing efforts to improve our operational efficiency, and as Q4 is traditionally stronger than Q3, the full year guidance remains unchanged for adjusted EBITDA and EBITA. However we are revising our FCF guidance from more than €50m to positive, mostly because of the negative movement in working capital already mentioned.
2024 is likely to be another difficult year for our industry, and we anticipate a lower group performance than for 2023 at constant scope.

Guidance for the fiscal year 2023:

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