Varta AG: Quarterly report - analysis and outlook for investors

Varta AG: Quarterly report - analysis and outlook for investors

According to a report by stock3.com, Varta AG presents its preliminary quarterly report for the third quarter and reports the strongest quarter of the year so far. What is particularly encouraging is the prospect that Apple will most likely be back on the customer list. Nevertheless, Varta remains deep in the red, with a consolidated result of EUR -115.8 million after nine months. Nevertheless, the annual forecast of adjusted EBITDA between EUR 40 and 60 million seems to be easily achievable. The Lithium-Ion CoinPower segment remains very challenging, while the Consumer Batteries segment is growing steadily and the Energy Storage segment is even recording impressive growth. Nevertheless, Varta's free cash flow remains deep in the red and further equity injections would help the balance sheet. Net debt is around EUR 600 million and interest expenses continue to rise. The forecasts for 2022 and 2023 show increasing sales growth, but the company remains in the loss zone for the time being.

Varta's preliminary figures show a mix of positive and negative developments. While the company has some segments that are growing positively, other segments continue to remain challenging. The high debt and negative free cash flow are also points of concern. However, if Varta achieves its forecast, this could boost investor confidence. It remains to be seen how the company will deal with these challenges in the near future and whether it will be able to return to profitability.