Gestamp triples net profit to 51m euros in Q1 2021

by Autocar Pro News Desk , 05 Jul 2021

Gestamp, the multinational company specialised in the design, development and manufacture of highly engineered metal components for the automotive industry, has reached 51 million euros of Net Income (vs 14m euros in Q1 2020 and 41m euros in Q1 2019, respectively), recovering and surpassing pre-Covid levels.

As per the company’s Q1 financial results presented today, revenues during January-March 2021 totalled 2,108m euros, which represents an increase of 11.7% at constant FX versus Q1 2020, outperforming by 7.9% the markets where Gestamp has a presence. EBITDA improved significantly, reaching 258m euros, which supposes a 43.9% increase at constant FX when compared to the first three months of 2020.

Strong show in all regions
The Gestamp Group has outperformed the market in all the geographies where the company is present, despite the challenging environment. Revenues during Q1 2021 grew in all of Gestamp’s geographies. More concretely, during the first three months of 2021, Gestamp has recorded a country-weighted outperformance of 7.9%.

In line with its aim of adjusting the company’s industrial and operational structure to the current market situation, Gestamp has successfully implemented the first phase of the Transformation Plan with a continued focus on efficiency.

During 2021, Gestamp expects revenues to outperform the global auto production market by mid-single digit. The continued focus on executing the Transformation Plan will allow the Group to reach an EBITDA margin above 12% by the end of 2021.

“Gestamp has delivered a solid Q1 2021, outperforming our Q1 2020 and even our Q1 2019 at all levels of the P&L even with lower market volumes. Macroeconomic risk remains as the pandemic continues to hit important geographies and vaccination efforts are heterogenous,” said Gestamp’s Executive Chairman, Francisco J. Riberas.

“The Automotive market is still facing uncertainty around semi-conductor shortage impact in the near future, as well as inflationary pressures in raw materials. We reiterate our 2021 guidance and we continue oriented on the transformation of the Group with a special focus on improving the efficiency and added value,” he added.

Tags: Gestamp