By Andrea Figueras
Battery manufacturer Varta reported a decrease in earnings and sales for the first half of the year, citing the challenging macro-economic situation. The German company reported adjusted losses of 6.8 million euros ($7.5 million) before interest, taxes, depreciation, and amortization for the period ending June 30. This is in contrast to adjusted Ebitda of EUR68.9 million in the same period last year.
The adjusted Ebitda margin declined to 14.3% from 15.7%. However, Varta is optimistic that the gradual adjustment of product prices and a decrease in energy and raw-material prices will lead to improved margins in the upcoming quarters.
Revenue also experienced a decline, with sales falling to EUR339 million compared to EUR376.8 million in the previous year. Despite these challenges, Varta remains confident in its full-year guidance, forecasting revenue of approximately EUR820 million and adjusted Ebitda between EUR40 million and EUR60 million. Additionally, the company expects to achieve sales of at least EUR900 million in the following year.
Varta has successfully implemented cost-saving measures, including workforce reductions of around 800 jobs globally. The company remains on track to meet its targets in this regard.