Vestas Increases Sales in 2023 And Returns to Profitability - Share Price Climbs
Aarhus, Denmark - Wind turbine manufacturer Vestas has published its figures for the 2023 financial year. Revenues increased by around 6 per cent compared to 2022. Following a significant loss in the previous year, the wind turbine giant has returned to profitability in 2023. The share price rises significantly.
Increase in turnover due to higher prices and continued growth in the service business
With revenue of EUR 15.38 billion in 2023, Vestas recorded an increase of 6.2 per cent compared to the previous year (2022: EUR 14.49 billion). The higher revenue was supported by higher prices and continued growth in service. EBIT before special items will be positive again in 2023 at EUR 231 million after a loss of EUR 1.15 billion. Accordingly, the EBIT margin before special items has climbed from minus 8 per cent to 1.5 per cent, allowing Vestas to offer an employee bonus for the first time in four years.
On balance, Vestas recorded a net profit of EUR 78 million in 2023, after a net loss of EUR 1.57 billion in 2022. The value of the combined order backlog of Power Solutions (EUR 26.0 billion) and Service (EUR 34.1 billion) rose to EUR 60.1 billion (end of 2022: EUR 49.5 billion).
Overall, Vestas achieved a record order intake of 18.4 GW for the year, which can be attributed in particular to a record-breaking fourth quarter and strong growth in both the onshore and offshore segments.
"Our strategic path towards our long-term ambitions is clear, and our focus remains to stay disciplined to continue building our momentum and execute as strongly as possible," says Vestas Group President & CEO Henrik Andersen.
Outlook for 2024: revenue to increase, EBIT margin between 4 and 6 per cent
For 2024, Vestas expects total revenue to continue to increase and to be between EUR 16 and 18 billion. Vestas expects an EBIT margin before special items of 4 to 6 per cent. Vestas expects that the ongoing geopolitical volatility as well as a slow development of approvals and insufficient grid expansion could cause uncertainty in 2024.
Vestas share price rises significantly
The Vestas share price climbed by 5.1 per cent to EUR 26.75 today in a generally friendly stock market environment. Compared to the turn of the year, this currently represents a drop of around 7 per cent.
Source: IWR Online, 07 Feb 2024