EBITDA, which showed an improving trend in the second half of the year, reached 30.1 million euros, an increase of 15.4% over the previous year
Net financial debt as of December 2022 amounted to €49 million, which represents an improvement in the leverage ratio to 1.6 times EBITDA for the last 12 months
In terms of direct margin in absolute terms, it grew by 16% in 2022 to €103 million
The group met all of its financial guidance set for the year 2022, both in terms of sales and EBITDA
All geographic regions and businesses have contributed positively to the increase in sales figures and are growing at double-digit rates
Mungia (Bizkaia), 23 de marzo de 2023.- Grupo Arteche has presented its consolidated results for 2022, the year in which the company celebrated its 75th anniversary. The group has managed to meet all of its financial guidance set for 2022, both in terms of sales and EBITDA.
Financial figures
Arteche achieved sales of 346 million euros at the end of fiscal year 2022, representing a 22.5% increase over the previous year. It is worth noting that the company achieved an all-time record turnover in the fourth quarter of the year, reaching over 100 million euros.
EBITDA, which showed an improving trend in the second half of the year, reached 30.1 million euros, an increase of 15.4% over the previous year. Net financial debt at the end of 2022 amounts to €49 million, which represents an improvement in the leverage ratio to 1.6 times EBITDA for the last 12 months, compared to 1.95 times EBITDA at December 31, 2021.
As for the direct margin, it grew by 16% in 2022 to €103 million, a progressive recovery throughout the year that allowed it to reach a margin percentage at pre-crisis levels in the last quarter of the year. These figures are driven by sales volume growth and a global roadmap that has combined the implementation of internal efficiencies and price alignment in a highly inflationary cost environment. Consolidated income amounted to 8.3 million euros.
In 2023, in compliance with the shareholder remuneration commitment and the line initiated in 2021, the Board of Directors has proposed the distribution of a dividend against 2022 results in the amount of €2.3 million, equivalent to a pay-out of 30%.
Sustained growth in all businesses and geographies
During 2022, all regions and businesses contributed positively to the increase in sales figures, and did so at double-digit rates. It is also important to note that contracting grew 42.6% over the fiscal year, reaching 407.3 million, above market growth, generating backlog and visibility for the 2023 financial year.
Positive performance by business in Arteche during 2022 and significant milestones for the year:
In measurement and monitoring, growth is above the market and above the objectives set in the 2023 Strategic Plan.
- Arteche leads the way in measurement and optical sensor technology. In the latter, it has positioned itself as a leader in its application in current measurement in nuclear fusion reactors, where it is part of several projects with international reference entities.
- It has renewed framework contracts with the main electric transmission companies, among others: Redeia in Spain, RTE (Réseau de Transport d'Électricité) in France and CFE (Comisión Federal de Electricidad) in Mexico, ensuring portfolio and visibility in the projection to 2023.
- It has increased production capacity in Mexico to meet growing demand in the North American market.
- It has consolidated its presence in Asia by doubling production capacity in Turkey thanks to the forthcoming opening of a new plant in the country in response to increased demand. In addition, it has developed a global supplier base for key components on Turkish soil.
In transmission and distribution network automation:
- Arteche has successfully completed the type tests of the new protection and control platform that will be launched on the market in 2023, allowing growth in this segment and thus reinforcing the product mix in its commercial strategy.
- It has obtained technical approvals in the Asia-Pacific region in countries such as Laos, Vietnam and Indonesia for position control units.
- It has consolidated its position as a leading company after the execution of large projects in countries such as Honduras, Chile, Italy and Mexico, among others.
As for the network reliability business:
- Arteche recovered to pre-covid-19 pandemic figures in reclosers markets.
- Double-digit growth in the power quality business and market recovery in both the United States and Mexico.
- Good results in Australia and the United States stand out thanks to the exponential growth trend in renewable energies that is occurring in these geographies.
- Advances in the servitization process with new value propositions.
Inorganic strategy in line with the Strategic Plan
The company's inorganic growth strategy is in line with the 2023 Strategic Plan. The integration of Esitaş, which has plants in Turkey and Indonesia and is engaged in the manufacture of medium- and low-voltage instrument transformers, has been successful. It has exceeded expectations in terms of synergies, further strengthening the supply chain and enhancing the group's positioning in the Asian market.
Similarly, the Australian company Smart Digital Optics (SDO) has been successfully integrated following the acquisition of 100% of the shares. This move has strengthened the company's digital network business and technological capital. Thanks to this operation, Arteche accelerated its growth in the development of smart grids, direct current transmission and the eco-design of its products, segments with great future potential.
Inorganic growth is a pillar of Arteche's strategy. The year closed with a robust pipeline of opportunities to secure future growth.
Commitment and recognition
Arteche's sustainability strategy, based on ESG (Environment, Social and Corporate Governance) criteria, focuses its commitment on people, society and the planet.
In the environmental field, Arteche focuses its commitment on 3 blocks:
- innovation and eco-design of its products, where it is mainly working on the search for sustainable insulators, the reduction of the product footprint and the circularity of the components;
- consumption of renewable electricity (currently 14% of the company's electricity consumption already comes from renewable sources); and
- circular economy, continuing with the good trend of previous years in the reduction of hazardous waste generation (22% in 2022), recycling and reusing 64% of it.
In compliance with Arteche's commitment to reduce its carbon footprint, CDP Score Report (a non-profit organization that manages the global disclosure system for investors, companies, cities, states and regions to control their environmental impact) has rated Arteche with a grade of "C" in its global commitment, in line with the industry average, and has highlighted Arteche's environmental commitment with the Supplier Engagement Rating (SER) classification with one of the highest scores, an "A-", a score higher than the European regional average (C) and the average for the electrical and electronic equipment industry (C).
Arteche has also signed its first US$20 million sustainable reverse factoring facility with IDB Invest. The operation will be regional in the Americas and will apply to Arteche's suppliers located in Mexico, Brazil and Argentina. This line of sustainable factoring, in which the eFactor entity has also participated, is structured by BID Invest under the parameters of circular economy.
With respect to the social pillar, the company continues to stand out for its commitment to people and local communities. In 2022, thanks to the Sumando Energías Solidarity Race, 75 families identified by Caritas in the different communities where they are present have been supported, making it possible for them to have access to electricity supply.
Arteche continues to work closely with local educational and technological institutions in a bid to bring in the talent needed to address the challenges ahead. Similarly, the company continues to take steps towards real and effective equality and has closed 2022 with 25% of women in management and responsibility positions within the group.
Likewise, 100% of the operations carried out by people belonging to the company have followed strict good governance protocols.
At a key moment for the energy sector, as all trends point out, and in the face of challenges such as energy transition, decarbonization, the promotion of renewable energy and network digitalization, Arteche has its sights set on continuing to grow and thus become stronger, more solid, more sustainable and more international.
About Arteche Group
Founded in 1946, the Arteche Group operates in the electrical sector, from generation to distribution, specializing in the electrical equipment, components, and solutions industry. Within this framework, the Arteche Group is among the TOP 3 world leaders in the instrument transformer market, number 1 in the auxiliary relay market, and maintains a regional leadership position in the rest of the products, especially those aimed at highly demanding and value-added markets, such as renewable generation and the railway sector.
The Arteche Group's business is focused on enabling the transmission and distribution of electric power from any generation plant to the end user with efficiency, quality, and reliability. This is why the company invests recurrently in R&D&I, with the intention of improving the quality and efficiency of its products, innovating in the development of new products, and offering the customer a differential added value. Arteche is currently present in more than 175 countries with commercial distribution capabilities; it has 13 factories in Europe, America, Asia and Oceania, including 6 research centers; and employs more than 2,600 people worldwide.
