AKWEL OFF TO SLUGGISH START IN Q1 2024

KUALA LUMPUR, May 6 (Bernama) -- AKWEL reported a four per cent drop in consolidated turnover to 263.5 million euros for the first quarter (Q1) of 2024, against a backdrop of low global automotive production at the beginning of the year. (1 euro = RM5.09)

In a statement, AKWEL said its turnover also included a 3.3 per cent decline at constant scope and exchange rates, as compared to the performance from Q1 of 2023, which was the highest of the financial year for the group.

By geographical area of production, the automotive and heavy-goods vehicle components manufacturer saw turnover increase in North America (4.3 per cent), but decline in France (10.9 per cent), the rest of Europe and Africa (4.1 per cent), Asia and the Middle East (4.6 per cent), and South America (53 per cent).

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Excluding the impact of rental obligations, its net cash stood at 111.8 million euros at the end of March, down 6.5 million euros from Dec 31, 2023, taking into account a significantly increased investment envelope of 20.0 million euros compared to 11.0 million euros in Q1 of last year.

With the exception of the Air intake and Cooling product lines which increase 17.6 per cent and 1.2 per cent respectively, most activities are down. This includes the Decontamination line, which is down 20.8 per cent.

In view of the performance recorded during this Q1, AKWEL maintains its expectation of stable activity for the current year.

Operating in 20 countries across five continents, AKWEL employs 9,500 people worldwide.

-- BERNAMA