Varta: It’s Getting Better And Better
The boom in wireless headphones is also boosting the business of battery manufacturer Varta, therefore increasing its prognosis again.
Because the move to wireless headphones is increasing, Varta is also more optimistic about the future. “The trend among mobile phone manufacturers is clear: cables are a thing of the past,” said Herbert Schein. “In the near future, the only interface to the devices will be wireless.”
He therefore raised the sales forecast for this year to 840 to 860 million euros instead of the previously targeted range of 810 to 830 million euros. That would be more than twice as much as last year, when Varta revenues were 363 million euros.
Adjusted for special effects, earnings before interest, taxes, depreciation and amortization should reach EUR 230 to 235 million, after EUR 97.5 million in the previous year. Previously, the management had only promised up to 215 million euros.
VartaVarta: Price development on the Xetra stock exchange for a period of 6 months
Price 116.00 Difference relative-4.61% In my depot
In the first nine months, in part to the purchase of the household battery division, sales rose by almost 160 percent to 630 million euros. With the lithium-ion cells for headphones, sales climbed by a good 71 percent in the first nine months. Varta was much more profitable here, the operating margin (adjusted Ebitda) rose by a good nine percentage points to 36.3 percent.
The company from Ellwangen in Baden-Württemberg is, according to its own account, the world market leader for button cells in headphones, which electronics giants like Samsung and Apple bring to customers with their smartphones.
The technical progress in energy storage is advancing rapidly, said Schein. “In the coming year, we will increase the production speed by more than 50 percent and thus be even more efficient. The increase in the energy density of our small lithium-ion batteries is planned for the end of the year and will give us further competitive advantages.” Varta wants to increase production capacity to 300 million batteries a year by the end of 2021.
Investors hardly reacted to the numbers. The share is currently worth a good 120 euros after falling below 60 euros in March. In addition to the corona crisis, the company had to struggle with imitation products and legal disputes in the spring, which is why the share has not moved in toto since the beginning of the year despite the V-shaped recovery after the crash in spring.
But the fronts have largely cleared up again, at least in the disputes. At the beginning of August, Varta settled a dispute with its major customer Samsung and agreed on new supply contracts, which also gave the share a boost.
Varta: It's Getting Better And Better - /10