GRAMMER AG increases revenue and operating earnings in 2022 and expresses optimism for financial year 2023 – Yahoo Finance UK

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EQS-News: GRAMMER Aktiengesellschaft / Key word(s): Annual Results
GRAMMER AG increases revenue and operating earnings in 2022 and expresses optimism for financial year 2023
30.03.2023 / 09:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

GRAMMER AG increases revenue and operating earnings in 2022 and expresses optimism for financial year 2023
GRAMMER Group revenue growth of 13.4% to EUR 2,158.8 million driven by positive currency translation effects, price increases and general market recovery
All regions contribute to revenue growth: EMEA (+6.6%), AMERICAS (+29.9%), and APAC (+5.0%)
Operating EBIT up 55.7% at EUR 35.5 million  thanks to strong Q4, in line with the guidance for 2022
Free cash flow increases to EUR 31.3 million (previous year:
EUR –5.6 million)
P2P project in AMERICAS: Measures to secure financial stability deliver first positive results; although earnings in the region impacted by impairment losses of EUR 73.6 million due to increased interest rates
Positive outlook for 2023 with operating EBIT expected to double to around EUR 70 million
Ursensollen, March 30, 2023 – The GRAMMER Group today presented the audited consolidated financial statements for the 2022 financial year and confirmed the preliminary figures published in February. Despite tough macroeconomic conditions, GRAMMER AG increased its consolidated revenue by 13.4% to EUR 2,158.8 million. Adjusted for currency effects, revenue picked up by 8.9%. The positive revenue performance was driven by all three regions and both divisions. The Automotive Division reported revenue growth of 12.6% to EUR 1,390.3 million. Revenue in the Commercial Vehicles Division increased by 15.0% to EUR 768.5 million. EMEA remained the strongest region in terms of revenue at EUR 1,131.4 million (+6.6%), with the AMERICAS region experiencing the greatest upturn of 29.9%.
Group earnings before interest and taxes (EBIT) amounted to EUR –45.0 million in 2022 after EUR 18.9 million in the previous year. Negative EBIT was particularly affected by a non-recurring effect resulting from an impairment loss of EUR –73.6 million in the AMERICAS region required on account of higher interest rates. On the other hand, operating EBIT, a key performance indicator of the Group, improved to EUR 35.5 million (previous year: EUR 22.8 million), representing an operating EBIT margin of 1.6%. This earnings growth was driven primarily by higher revenue and initial restructuring successes in the AMERICAS region. GRAMMER also benefited from signs of recovery in the APAC region, which in the first half of the year was still suffering from lower call-offs due to COVID-19-related lockdowns and the run-on effects of a stricter emission standard. Other non-recurring expenses, chiefly for special freight at two GRAMMER plants in the AMERICAS region, also depressed income by around EUR 10 million. Furthermore, GRAMMER was able to reach agreements with customers in the reporting period on passing on the significant inflation-related cost increases. In addition to directly attributable costs for coronavirus-related protection and response measures in the amount of EUR 2.1 million, operating EBIT was adjusted for negative currency translation effects of EUR 0.2 million, expenses for restructuring measures of EUR 4.6 million and the impairment losses on property, plant and equipment and intangible assets described. Free cash flow improved to EUR 31.3 million in 2022 (previous year: EUR –5.6 million), primarily thanks to improved working capital items for raw materials and project inventories.
Jurate Keblyte, CFO of GRAMMER AG: “Our financial year was dominated by an unprecedented race to catch up, from negative earnings in the first half of the year to the turnaround in the third quarter and an exceptionally strong final spurt at the end of the year. Like other automotive suppliers, we came under enormous pressure in 2022 to negotiate the passing on of inflation-related cost increases with our customers. Here, we developed solutions in partnership with our customers that played a major role in this success. We also reported the first positive results of our restructuring program in AMERICAS and benefited from the recovery of business in China. Provided our course is not unexpectedly disrupted, we are generally confident about the development of business in the current year and anticipate another tangible improvement in earnings.”
Significant growth in earnings in EMEA region, AMERICAS showing signs of recovery
The EMEA region, which includes the companies with the highest revenue, reported solid performance in the reporting period and increased revenue by 6.6% to EUR 1,131.4 million. Adjusted for currency effects, revenue increased by 7.9% to EUR 1,145.4 million. This growth was increasingly propelled by the Commercial Vehicles Division (revenue +10.8% to EUR 550.4 million). The Automotive Division reported a 2.9% upturn in revenue to EUR 581.0 million.
Operating EBIT in EMEA rose significantly by 27.1% to EUR 60.0 million. Earnings improved despite the inflation-driven cost increases and the payment of the inflation compensation premium. Here, the Group benefited from successfully passing on higher material prices and the reversal of provisions.
The AMERICAS region showed real signs of recovery and generated revenue growth of 29.9% to EUR 672.5 million last year. Adjusted for currency effects, revenue increased by 15.7% to EUR 598.9 million. This positive development was mainly attributable to higher demand in the Commercial Vehicles Division, as well as the lower prior-year figures in the Automotive Division due to the pronounced impact of the supply bottlenecks affecting semiconductors. Revenue in the Automotive Division increased by 27.0% to EUR 537.1 million, while revenue in the Commercial Vehicles Division rose by 43.0% to EUR 135.4 million.
Operating EBIT in AMERICAS improved to EUR –48.3 million (previous year: EUR –61.5 million). Once again, the main negative factors were high inflation in material, personnel and freight costs. This was exacerbated by non-recurring expenses of around EUR 10 million. Nonetheless, the figures in the second half of the year show that the various measures of the P2P restructuring project launched for the region are gradually taking effect.
The APAC region reported revenue growth of 5.0% to EUR 426.7 million in 2022; FX-adjusted revenue fell by 1.3% to EUR 401.2 million. Performance here was affected predominantly by local COVID-19 lockdowns, which resulted in lower customer call-offs and production stoppages. Ongoing supply bottlenecks for semiconductors also hurt the revenue volume. The Automotive Division reported growth of 8.4% to EUR 290.5 million. After trending downwards in the first half of the year, the Commercial Vehicles Division also recovered and closed with a slight 1.4% decline in revenue to EUR 136.2 million. Good collaboration with new customers in the second half of the year had a positive impact on revenues in the APAC region.
Operating EBIT declined marginally to EUR 48.5 million (previous year: EUR 52.8 million). The operating EBIT margin decreased by 1.6 percentage points year on year to 11.4% (previous year: 13.0%). This is chiefly the result of high product launch and project development costs.
Good progress in the “Innovation and Digitalization” and “Sustainability” focus areas
GRAMMER development teams also worked hard in 2022 to ensure that the company is well positioned for the future by providing innovative, sustainable products. As one of the leading suppliers of center consoles, for example, GRAMMER introduced several new products last year that stand out thanks to their flexible concepts, innovative mechanics and environmentally friendly materials. Examples of this include the free-standing center consoles in the new BMW iX, which GRAMMER created as a partner from the outset together with BMW and interior experts, and the flexible, removable BuzzBox in VW’s new ID.Buzz.
GRAMMER introduced its Ubility One concept back in 2021 with the aim of helping shape urban passenger transport in the 21st century and it unveiled this concept to the general public at various trade fairs in 2022. The innovative product family makes consistent use of lightweight construction and features sustainable design and high user comfort, pointing the way to the future of urban mobility. By launching Ubility One, GRAMMER is positioning itself as the first provider of a holistic interior concept for the buses and trains of tomorrow. It is the Company’s answer to the megatrend of urbanization and helps meet growing individual mobility requirements.
As part of its sustainability strategy, GRAMMER created a separate team for sustainable materials in 2022 and, as well as working on climate protection targets (Scope 1 and 2 CO2 emissions), began reporting Scope 3 emissions. Suppliers, partners and service providers were also more closely involved in the sustainability strategy. This meant the company was extremely well prepared for the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) that came into effect on January 1, 2023. The success of efforts to improve sustainability is also demonstrated by good rating agency ratings: GRAMMER improved its EcoVadis score from bronze to silver and was rated B by CDP for the first time in 2022.
Outlook for 2023: Stable revenue development and significant improvement in operating EBIT
In light of the continued macroeconomic and industry-specific uncertainty, the GRAMMER Group is forecasting revenue at the prior-year level of around EUR 2.2 billion in 2023. GRAMMER expects its operating EBIT to double to around EUR 70 million. This substantially higher earnings guidance reflects the progress made by the company as part of the measures of the P2P restructuring project in the AMERICAS region, as well as the further efficiency and cost reduction measures that it intends to systematically pursue over the coming months. As in the previous year, the positive effects are expected to unfold over the course of the year; therefore, a significantly stronger second half of the year is again anticipated. Nevertheless, the full-year forecast again depends significantly on the extent to which GRAMMER can agree to pass on inflation-related cost increases with its customers.  With margins also expected to increase, GRAMMER is on track to achieve the medium-term guidance it announced in April 2022, which involves an operating EBIT margin in excess of 5% by 2025.
Highlights of the 2022 annual report and the core elements of the 2025 medium-term strategy can be found on GRAMMER’s website at As usual, the full 2022 financial report is available at
GRAMMER Group key figures
in EUR m
Q4 2022
Q4 2021
Group revenue
Revenue EMEA
Revenue APAC
Earnings KPIs
EBIT margin (%)
Operating EBIT
Operating EBIT margin (in %)
Earnings before taxes
Net profit/loss
Other KPIs
Net debt
Capital expenditure (without financial assets)
Depreciation and amortization
Free cash flow
Employees (average number for the period)

GRAMMER’s key performance indicator “operating EBIT” is discussed on page 15 of the 2022 Annual Report.
Rounding differences in the disclosures contained in the consolidated financial statements are possible.
Company profile
GRAMMER AG, which has its head office in Ursensollen, specializes in the development and production of complex components and systems for automotive interiors as well as suspension driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, the Company supplies headrests, armrests, center console systems, high-quality interior components and operating systems and innovative thermoplastic components for the automotive industry to prominent car manufacturers and Tier 1 suppliers in the vehicle industry. The Commercial Vehicles Division comprises the business segments of truck and offroad seats (tractors, construction machinery and forklifts) and train and bus seats. GRAMMER has about 14,000 employees and operates in 19 countries around the world. GRAMMER shares are listed in the Prime Standard and traded on the Munich and Frankfurt stock exchanges via the Xetra electronic trading platform.

GRAMMER Aktiengesellschaft
Tanja Bücherl
Phone: 0049 9621 66 2113

30.03.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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GRAMMER Aktiengesellschaft
Grammer-Allee 2
92289 Ursensollen
+49 (0)9621 66-0
+49 (0)9621 66-31000
DE0005895403, DE0005895403
589540, 589540
Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange
EQS News ID:

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