By Pierre Bertrand
Iveco Group, the Italian commercial-vehicle maker, experienced a net loss in the fourth quarter of 2023 due to the devaluation of the Argentine peso, despite a growth in revenue.
Net Loss and Revenue
On Friday, Iveco Group announced a net loss of 25 million euros ($26.9 million), compared to a profit of 89 million euros in the previous year. However, revenue recorded a 10% increase, reaching 4.88 billion euros.
These results differ from the analysts’ expectations of 93.88 million euros in net profit and 4.49 billion euros in revenue, according to Alpha Value-compiled consensus. Adjusted quarterly net profit rose to 49 million euros from 44 million euros, while cost of sales increased by 8.6% to 4.13 billion euros.
Impact of Argentine Peso Devaluation
Gerrit Marx, Chief Executive of Iveco Group, explained that the sudden devaluation of the Argentine peso in December 2023 had a negative impact on their financial expenses and net industrial cash position.
Plans for Share Repurchase and Dividend Proposal
The company announced its intention to repurchase up to 10 million shares at a value of up to 130 million euros. Additionally, Iveco revealed that it would propose an annual cash dividend of 0.22 euros per share.
For the rest of the year, Iveco Group is aiming for adjusted earnings before interest and taxes between 900 million euros and 950 million euros. In 2024, they expect a decrease of approximately 5% in net revenue of industrial activities, while targeting adjusted industrial activities EBIT between 770 million euros and 820 million euros.