AKWEL 2024 Profit, Revenue Decline Amid Inflationary Pressures

KUALA LUMPUR, April 4 (Bernama) -- AKWEL, a parts and systems manufacturer for the automotive and heavy-vehicle industry, has recorded a net income of 24.2 million euros in 2024, declining 32.3 per cent from 35.7 million euros in the previous year. (1 Euro = RM4.90)

According to a statement, the decline in profitability was mainly due to inflationary pressures on raw materials, components, and payroll, although the group continued essential investments to secure its future growth.

For 2024, AKWEL also reported a 7.3 per cent drop in revenue, which totalled 989.0 million euros, compared to 1.0664 billion euros in 2023.

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Earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased by 14.4 per cent to 87.2 million euros from 101.9 million euros in 2023, while current operating income fell by 37.1 per cent to 38.4 million euros in 2024 from 61.0 million euros in the previous year.

However, operating cash flow increased by 49.7 per cent to 95.7 million euros, and net investments for 2024 remained high at 40.3 million euros, focusing on safety, product adaptation for electric motors and hydrogen engines, and enhancing product competitiveness.

As a result, AKWEL ended the year with a strong net cash position of 133.4 million euros, up from 105 million euros in 2023.

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In terms of corporate social responsibility (CSR), the group made significant progress, including reducing accident frequency, water consumption, and carbon emissions by 36 per cent compared to 2021.

Looking ahead, AKWEL expects a similar decline in activity in 2025, driven by global market trends and delays in electric vehicle production and sales. To adapt, the group plans to adjust its production costs, enhance technical capabilities, and improve organisational agility.

-- BERNAMA