Akwel reports business gains but plant closure to weigh on 2024 result

Champfromier, France – French automotive and HGV equipment and systems maker Akwel has reported strong sales growth in 2023, despite currency headwinds.

Akwel's revenues increased 7.9% year-over-year – 9.6% at constant currencies – to €1.0 billion, including a solid 7.2% gain in the fourth quarter.

The performance, said Akwel 8 Feb, marks a return to ‘close to the level of activity’ in 2019, before the outbreak of the global Covid crisis.

Sales were up despite a €16.8 million negative impact of currency conversion rate, including €8.4 million on the US dollar, Akwel stated.

By market region, sales were: France, €306 million (+13.9%); Europe (excluding France) and Africa, €302 million (+12.7%); North America, €296 million (-0.9%); Asia and the Middle East (including Turkey), €157 million (+6.9%), South America, €4.7 million (-15.8%).

In terms of business activity, 'products and functions' turnover increased by +8.5% to €1,031.8 million over the 12-month period.

Product lines 'air intake' (+26.3%), 'washer systems' (+17.3%) and 'cooling' (+9.6%) were the strongest drivers in 2023, noted Akwel.

"Recent activity" from structural parts for electric vehicles totaled €21.5 million (+77.9%), while turnover from 'tooling' rose by 24.7% to €26.6 million, it added.

Increased business activity and the group’s ability to gradually pass on some cost increases, pointed to "a growth in current operating income in 2023 compared to 2022." 

Without giving figures, Akwel said operating profitability had 'improved over 2022', but would this year be impacted by costs relating to industrial restructuring in France along with the closure of its Gournay-en-Bray site. 

Announced in late last year, the Gournay plant closure is set to go ahead in the first half of 2024, said Akwel, adding that restructing moves "are expected to take a toll on operating and net income."

According to local French media, Akwel announced the planned closure of the site in October last year, affecting 77 employees.

Group-wide, Akwel anticipates "a similar level of business activity to that seen in 2023 in the current financial year, based on forecasts of stable global automotive production in Europe and North America."