Varta Lowers 2023 Guidance as Uncertain Demand Impacts Sales


Shares in Varta, the German battery manufacturer, experienced a decline on Wednesday following the company’s downward revision of its 2023 guidance. The decrease in guidance is predominantly attributed to uncertain customer demand, which cannot be sufficiently addressed through cost-cutting measures.

As of 0805 GMT, Varta’s shares were down 7.6% at EUR21.03.

For the entire year, Varta anticipates sales of approximately 820 million euros ($906.6 million), which aligns with the lower end of its previous outlook range of EUR820 million to EUR870 million.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now projected to fall within the range of EUR40 million to EUR60 million, compared to the previous estimate of at least the 2022 level (EUR69.5 million).

Preliminary figures for the second quarter reveal sales of around EUR175 million, accompanied by an EBITDA loss of approximately EUR5 million. However, the company expects a rebound in the latter half of the year.

In response to these challenges, Varta implemented cost-cutting measures within its workforce, including a volunteer program for employees at the Ellwangen site and a planned reduction in stages for short-time workers at the Noerdlingen plant.

Varta is scheduled to release its full half-year results on August 11.

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