Viscom (V6C) Q4 2023 earnings summary

Executive summary

• Revenue reached a record €118.8m, up 12.6% YoY; incoming orders rose to €113.2m, while EBIT fell 19.2% to €6.6m and net profit declined to €3.1m.

• Component shortages and supply-chain disruptions delayed revenue recognition and built inventories; elevated labor, material, energy and financing costs weighed on earnings.

• 2023 revenue and EBIT were within guidance, but earnings were considered unsatisfactory and below expectations.

Financial highlights

• Revenue was €118.780m versus €105.518m in 2022; Q4 revenue was €38.573m, essentially flat YoY.

• EBIT was €6.611m versus €8.186m; EBIT margin was 5.6% versus 7.8%. Higher operating expenses and staff costs pressured results.

• Net profit was €3.142m versus €5.369m; EPS was €0.34 versus €0.60. Net finance costs rose to €2.072m from €0.771m.

• Incoming orders increased to €113.248m from €111.065m, while year-end backlog fell to €28.952m from €34.484m.

• Operating cash flow improved to €6.184m from negative €1.687m; investing cash flow was negative €5.138m and financing cash flow negative €8.212m.

Outlook and guidance

• 2024 guidance: incoming orders and revenue of €100m–€110m, EBIT margin of 3%–8%, and EBIT of €3.0m–€8.8m.

• Expectations are for cautious first-half customer investment, followed by a significant recovery in H2; Europe automotive demand may improve from H2 2024.

• Liquidity is expected to be supported by own funds and unused credit facilities; investment will focus on products, regional presence and organizational capabilities.

• Longer-term opportunities include battery production, consumer electronics, semiconductor back-end inspection, electrification, automation and digitalization.