2023 Financial Results
hGears AG has announced today its full-year financial results for 2023, reflecting the challenges of last year including weak demand and adverse conditions:
- revenue EUR 112.5 million, nearly meeting our expectations despite a slight 2.2% shortfall
- adjusted EBITDA EUR 5.6 million, aligning with our forecasted range
- free cash flow EUR -3.1 million, which was much better than anticipated
The performance was primarily impacted in our e-Mobility and e-Tools sectors, affected by industry-wide slowdowns and less demand in areas sensitive to high interest rates and weather conditions.
Notably, our negative free cash flow improved to EUR 3.1 million, which was better than expected. Our balance sheet remains very strong, with cash reserves at EUR 26.6 million, net debt of EUR 3.4 million and an equity ratio of 53.9%.
CEO Sven Arend commented: “Market dynamics remained challenging in 2023, impacted by slower-than-expected destocking and production volume uncertainties from our customers. As we look to 2024, we will further continue to drive efficiencies, beginning with a refinement of our business areas to better align them with end-market dynamics and industry-specific requirements, and with the ultimate aim of ensuring that we remain agile, efficient, and optimally positioned to capitalize on end-market growth when it returns.”
Read full press release here.
