Valeo's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

The Valeo Group is a French automotive supplier. It works in partnership with all the manufacturers in the world. The company has almost 110,300 employees in 33 countries worldwide. It also has 187 production sites. In 2020, the company's business activity was down on the previous year's level. The results for the year as a whole were as follows

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Turnover for the year 2020

For the full twelve months of fiscal year 2020, the Valeo Group achieved consolidated sales of 16,436 million euros, compared to 19,477 million euros in 2019. This represents a year-on-year decline of 14% (at constant reporting entity and exchange rates).

13,810 million in 2020, compared to €16,360 million in the previous year. 16,360 million in the previous year, down by 14% on a like-for-like basis.

Turnover in the replacement market fell by 10% (at constant scope and exchange rates) over the year to 1,748 million euros in 2020. 1,990 million a year earlier.

878 million for the year 2020, compared to 1,127 million a year earlier. 1,127 million a year earlier. This represents a 21% decline (at constant scope and exchange rates) year-on-year. This decline is due to the slowdown in client projects as a result of the Covid-19 pandemic.

 

Breakdown of revenue by business line

Several parameters are responsible for the growth in sales of the Valeo Group's business groups. These are their product, geographic and customer mix, and the relative share of the replacement market in their activity.

For example, for the year 2020, the Comfort and Driving Assistance Systems cluster generated sales of 3,229 million euros, compared to 3,649 million euros in 2019. It declined by 12% (on a like-for-like basis) year-on-year.

The Powertrain Systems division recorded sales of €4,370 million in 2020. At the end of the previous financial year, it had come to 5,121 million euros. 5,121 million. This means that turnover in this segment fell by 15% (on a like-for-like basis) from one year to the next.

For the full year 2020, the Thermal Systems segment saw its turnover decrease by 19% (at constant scope and exchange rates) compared to 2019 to €3,703 million. A year earlier, it had amounted to €4,582 million.

Finally, the Visibility Systems division's revenue reached €5,024 million in 2020, compared to €6,014 million in the previous year. 6,014 million in the previous year. This represents a year-on-year decrease of 16% (at constant scope and exchange rates).

 

Ebitda performance in 2020

For the full year 2020, the Valeo Group recorded an Ebitda of 1,505 million euros, compared to 2,496 million euros a year earlier. It fell by 39.7% year-on-year. In detail, the Comfort and Driving Assistance Systems division saw its Ebitda fall by 31.2% to €412 million from €599 million in 2019.

The Ebitda of the Powertrain Systems division stood at €409 million in 2020, compared to €685 million the year before. 685 million the year before, a decline of 40.3%. The Thermal Systems segment's revenue reached €247 million in 2020. 247 million in 2020, a decline of 50.8% compared to 2019 ('502 million).

The Visibility Systems segment posted an Ebitda of €435 million in 2020, compared to €660 million in the previous year. 660 million in the previous year. It reported a year-on-year decrease of 34.1%.

 

Performance of other financial indicators in 2020

For the year 2020, the Valeo Group recorded a gross margin of 2,155 million euros, compared to 3,454 million euros in 2019, a decrease of 38%. It stood at 13.1% of sales, compared to 17.7% a year earlier. Research and development expenses increased by 9% to €1,695 million, compared to €1,550 million in 2019.

870 million in 2019. 870 million in 2019. They decreased by 4% year-on-year. For the full year under review, the operating margin (excluding the share of profit of associates) was -372 million euros, or -2.3% of sales.

The operating margin (after taking into account the share of profit of associates) was -650 million euros. 650 million. It amounted to -4.0% of turnover. In 2020, the company recorded an operating result of -857 million euros.

The net result, group share, was -1,089 million euros in 2020, compared to 313 million euros a year earlier.

 

Financial structure at the end of 2020

At the end of 2020, the Valeo Group has a healthy financial situation. For the year as a whole, the automotive supplier generated a free cash flow of 294 million euros, compared to 519 million euros a year earlier.

In addition, the company achieved its objective of reducing net financial debt to below €3 billion. At the end of December 2020, it stood at €2,944 million, compared with €4,037 million at 30 June 2020.

At the end of 2020, the group's available cash amounted to 3 billion euros. The undrawn credit lines are estimated at €2.3 billion at 31 December 2020.

 

Dividend and market capitalization of Valeo in 2020

The Valeo Group is one of the companies that honors its commitment to pay a dividend to its shareholders at the end of each year. For the year 2020, the Board of Directors has decided to pay a dividend of 0.30 euro per share.

In addition, Valeo's shares are listed on the Euronext market in Paris. In 2020, the company had a market capitalization of 7.752 billion euros.

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