EBITDA reached 40.7 million euros, with a growth of 35.1% and a substantial margin improvement of 1.5 percentage points compared to the previous year
The direct margin in absolute terms grew by 29.7% to 133.6 million euros
Operating cash flow generation as of December 2023 reached 39% of EBITDA
All geographical areas and business lines have contributed positively to the increase in sales, most of them with double-digit growth
Mungia (Bizkaia), March 19, 2024 - Arteche, a global leader in equipment, components and solutions for the energy sector, has presented its financial results for the 2023 financial year. The group has once again met all its financial guidance for the year, including sales and EBITDA.
Financial figures for the 2023 financial year
Arteche has achieved a record net profit of €12.1 million at the end of FY2023, an increase of 56.9% compared to the previous year. Driven by the good investment trend in the electricity sector, sales also reached an all-time record turnover of 401 million euros, an increase of 16% compared to the previous year.
The direct margin in absolute terms grew by 29.7% to 133.6 million euros, driven mainly by the growth in sales volumes, as well as by the adoption of various actions that have reinforced internal efficiencies.
EBITDA reached 40.7 million euros, an increase of 35.1% and a substantial improvement in the margin of 1.5 percentage points with respect to the previous year, thus exceeding the 10% margin and regaining double-digit growth. It should also be noted that operating cash flow generation reached 39% of EBITDA.
In turn, in 2024, and in compliance with the commitment to shareholder remuneration and the line initiated in 2021, the Board of Directors has proposed the distribution of a dividend against 2023 results in the amount of €6.0 million.
All regions and businesses contribute to Growth
In 2023, all regions and businesses contributed positively to the increase in sales, almost all of them doing so in double digits and providing backlog and visibility for 2024. Order intake, meanwhile, grew by 16.4% to 474.1 million euros, which is above the market average. In this case, growth is generalized across all geographic regions and business segments.
By business, in measurement and monitoring:
- Arteche achieves record production in all high voltage and medium voltage.
- As in the previous year, the four main markets were, in this order, the United States, Spain, Mexico and Brazil. This confirms the trend that the North American market will be a key market in the coming years due to its high level of investment in the renewal of its electricity infrastructure and the interconnection of renewable energies.
- The company has implemented the ZEPAS solution together with Red Eléctrica and Elewit (its technological platform), both Redeia companies. ZEPAS is a portable system that makes it possible to provide electricity supply for the auxiliary services of any substation directly from a high-voltage line, dispensing with any generator set and, therefore, avoiding its emissions.
- HVDC (high voltage direct current) links are becoming more and more frequent, largely due to the growth of renewable energies in offshore parks, and Arteche is consolidating its position as the preferred supplier of optical current measuring transformers for its main operators.
In the T&D Grid Automation business:
- Arteche's IEC 61850 substation automation systems have been chosen to be installed in the first substations in Spain to implement digital technology to their entire control and protection system.
- New deliveries have been made for protection and control projects for high-speed train infrastructures in Mexico.
- The company has won orders for relays from 80 different countries, exceeding 465,000 pieces distributed.
- The e-commerce sales channel, a digital leap in the field of industrial sector sales, of relays and test blocks reached 15 million euros in orders.
Finally, in the network reliability business:
- Arteche implements a new capacitive circuit connection system with transient mitigation, the PQ-Switch, at the Talayuela II plant (Cáceres) and integrates this solution within its production capabilities in Spain, minimizing the impact of connecting traditional capacitor banks on the park's power electronics equipment.
- The company achieves record orders for harmonic filters and capacitor banks in Australia, the United States and Canada.
- Increased service portfolio, offering consulting solutions for grid code compliance, short-circuit studies and field services, among others.
- Launch of a new 15kV recloser offering, with a 12% reduction in carbon footprint for its full life cycle.
Audited financial and business data at the end of 2023 suggest that the company will consider growth as a key lever of its new Strategic Plan 2024-2026, continuing the trend of increasing sales and EBITDA to improve the results obtained to date.
Leading the transition of the energy sector
Since its beginnings, Arteche has been a benchmark in aspects intrinsically linked to its philosophy and values as a family company operating in a key sector for the energy transition. Hence Arteche's commitment to lead aspects related to ESG (Environment, Social and Corporate Governance) criteria, as well as the attraction and development of talent and continuous innovation, allocating 3% of its turnover to R+D+i.
In line with this commitment, in the area of the environment, Arteche reduced its greenhouse gas (GHG) emissions by 39% in 2023 compared to 2021, the reference year. By 2030, the group's objective is to reduce them by 50% compared to the same year. Likewise, the consumption of energy generated from renewable sources accounted for 33.8% of the total. By 2024, the Group expects to increase this percentage to 40%, in line with its goal of achieving 100% renewable energy consumption by 2030.
The percentage of recycling and reuse of waste in the 2023 financial year was 58% of total waste generated. A level again aligned with its strategy to achieve 100% recycling and reuse of waste by 2030.
In terms of social responsibility, Arteche continues to make progress towards real and effective equal opportunities, reaching a percentage of women in management and responsibility positions throughout the group of 28% by the end of 2023.
Finally, in terms of governance, all operations carried out by Arteche in 2023 followed good governance criteria. In addition, the Group continues to strengthen the level of effectiveness of its internal control according to the System of Internal Control over Financial Reporting (SCIIF).
EnergizingFuturesTogether', the new Strategic Plan 2024-2026
On March 20, Arteche will present its new Strategic Plan for the period 2024-2026, Energizing Futures Together, to financial analysts and investors at an in-person event in Madrid. This plan sets out Arteche's roadmap to develop the products, services and solutions needed to build the bridges to a future where access to clean energy is universal, efficient and of quality as a key element in the future of all people, while generating recognizable value for shareholders and continuing the Group's growth strategy.
The Strategic Plan is divided into three main areas: Leadership and growth, Building the future and Solid Financial Value, with each area corresponding to the business, innovation, talent and ESG, and financial strategies, respectively.
