Faurecia: return to a dividend of €1 per share and future ambitions

  •   23/02/2021 - 10h39
  •   DEHOUI Lionel

In February, several European groups continue to report figures on their performance. Here are those of Faurecia.

Dividend, annual sales and 2021 guidance

Faurecia's annual sales figures show a considerable decline, according to its communication of Monday, February 22, 2021. 14.65 billion, down 17.5%.

With regard to the dividend, Faurecia has decided to return to paying a dividend of one euro per share. On the other hand, its annual operating income came to 406 million, corresponding to a significant 68.3% decline.

16.5 billion for its 2021 guidance. 16.5 billion. As a result, its operating margin for sales is around 7%, almost identical to the pre-pandemic level. Its net debt-to-Ebitda ratio is below 1.5 X for its 2021 guidance (at the end of the fiscal year).

 

Annual net income, cash flow and a record high

The Faurecia Group 's figures are of particular interest to its investors and partners. For example, its net income, attributable to equity holders of the parent at the end of the 2020 financial year is down. 379 million compared with the profit recorded in the previous year. Indeed, in 2019, the company made a profit of 590 million euros.

In addition, Faurecia's net cash flow is above 1 MD of euros cash for the second half of the year. 1 million in the second half. This offsets its first-half performance. The Group nevertheless announced a net cash flow of up to 500 million euros for its 2021 guidance.

Moreover, in its order intake, the company broke its annual record. It therefore ended up with 26 MDS euros in this sector.

 

Faurecia's ambitions between now and 2025

The Faurecia Group aims to achieve an average annual outperformance in sales. It plans to exceed the 500 PB mark over the period 2020-2025. 25 billion in 2025. Similarly, its cumulative net cash flow over the 5 years will be over 4 billion euros.

In 2025, the company expects to achieve sales of 24.5 MD of euros or more and an operating margin above 8%. For the same year, it expects to achieve nearly 4.5% of sales for its net cash flow.

In terms of its outlook, Faurecia is targeting hydrogen mobility with sales of 3.5 billion in sales by 2030. Also in 2030, it aims to achieve CO2 neutrality.

 

More information on some figures

It is nevertheless important to note that STELLANTIS has decided to distribute its stake in Faurecia to its various shareholders. As a reminder, STELLANTIS represents approximately 39% of the company's capital. Logically, this distribution will increase the Group's free float and improve its profile on the financial markets.