Sogefi: results for first quarter 2023

Revenues up by 12.8% to € 852.4 million

EBIT: € 54.8 million, +35.6%

Net income € 31.4 million (€ 20.8 million in first half 2022)

Free Cash Flow positive for € 45.0 million (€ 41.2 million in first half 2022)

Debt before IFRS 16 reduced to € 185.3 million (€ 216.4 million at end of June 2022)

Milan, 24 July 2023 – The Board of Directors of Sogefi S.p.A., which met today under the chairmanship of Monica Mondardini, has approved the group’s Semi-Annual Financial Report as of 30 June 2023, presented by Chief Executive Frédéric Sipahi.

Sogefi, a company of the CIR Group, is one of the main producers worldwide of automotive components in the sectors of Air and Cooling, Filtration and Suspensions.


In the first half of 2023 world vehicle production reported growth of 11.2% compared to the same period of 2022, with progress made in all geographical areas.

Growth was particularly strong in Europe (+20.2%) and NAFTA (+12.2%) and significant in Mercosur (+9.7%), India (+6.5%) and China (+7%), where, after a negative first quarter of 2023 (-4.7%), there was a distinct recovery in the second quarter (+20.3%). 

For 2023, S&P Global (IHS), a source widely used in the sector, expects that world production will grow by 5.3% compared to 2022, with an increase in all the main geographical areas. The reduction in the growth index forecast for the full year compared with that reported in the first half of the year is due to the strong recovery of production seen in the second half of 2022.


The consolidated revenues of the Group recorded double-digit growth compared to the first half of 2022 (+12.8% and +14% at constant exchange rates), which reflects the increase in production volumes (+9.4%) and in selling prices (+4.2%).

The results were positive and significantly better than those of first half 2022:

  • EBITDA came in at € 111.1 million and was up by 11.3% on first half 2022, thanks to the growth in volumes and the contribution margin holding up well;
  • EBIT, totalling € 54.8 million, rose by 35.6%, with the EBIT margin at 6.4% of sales, up from 5.3% in first half 2022;
  • Net income was € 31.4 million (+ 51% from € 20.8 million in first half 2022);
  • Free cash flow was positive for € 45.0 million (€ 41.2 million in first half 2022);
  • Net debt (before IFRS 16) stood at € 185.3 million at 30 June 2023, down from € 216.4 million at the end of June 2022.

Commercial activity was positive with an important part of contracts being for E-mobility (32% of the value of new contracts acquired in the first half) with significant new contracts awarded in China, India and the United States too.  

Filtration signed important agreements in Europe both for the OEM (Original Equipment Manufacturers) and the IAM (Independent Automotive Aftermarket) channels: it gained contracts for the supply of filters for truck brake circuits and signed an exclusivity agreement for three years with one of the principal leaders in the distribution of automotive parts in the Aftermarket channel. Development has been continuing in India too, where the business unit is gradually gaining market share.

Suspensions obtained new business in the Indian market with local operators, signing a contract in particular for the supply of stabilizer bars for light commercial vehicles with an innovative player aspiring to becoming one of the principal E-mobility producers in the Indian market. The division also obtained various contracts in Europe, particularly for the supply of stabilizer bars for top-of-the-range electric SUVs and for coil springs for E-mobility platforms.

Air and Cooling is continuing to develop in China, with the receipt of an important order from BYD for the supply of air manifolds for a Plug-in-Hybrid platform and a contract for the supply of oil manifolds used in electric cars to lubricate the inside of the gearbox. Sogefi can offer these components, which are traditionally made of metal, in plastic which gives a weight reduction and optimizes design and cost. Contracts have also been signed in North America for the supply of thermal management products and in Europe for thermostat groups for E-mobility and intake manifolds. 47% of the value of the new contracts signed in 2023 by the Air and Cooling division were for parts destined for E-mobility platforms.


The revenues for the first half of 2023 totalled € 852.4 million, posting growth of 12.8% at current exchange rates and 14% at constant exchange rates on the corresponding period of 2022.   

Revenues recorded growth in all geographical areas: +14% in Europe, +15.8% in North America (+17.2% at constant exchange rates), +5.6% in South America (+3.9% at constant exchange rates net of inflation in Argentina), +10.3% in India (+17.7% at constant exchange rates), +2.3% in China (+8.2% at constant exchange rates).

Sogefi outperformed the market in North America, India and China.

Suspensions reported growth in revenues of 15.4% (+15.7% at constant exchange rates).

Filtration reported an 11% rise in revenues (+12.4% at constant exchange rates), with particularly significant growth in the Aftermarket channel in Europe (+13.6%), North America and India.

Air and Cooling revenues were up by 12.2% (+14.4% at constant exchange rates), with a particularly significant increase in NAFTA (+18.5% at constant exchange rates).

EBITDA came in at € 111.1 million and was up by 11.3% compared to first half 2022 (€ 99.8 million). 

The contribution margin increased by 12.9% compared to the first half of 2022, thanks to the higher volumes and to profitability (ratio of contribution margin/revenues %) which was unchanged at 28.1% compared to 2022, despite the extra costs linked to energy prices and in general to inflation.

The ratio of fixed costs to revenues declined to 14.3% from 14.9% in the first half of 2022.

Other expense, which mainly includes exchange rate differences, made a negative contribution to EBITDA of € 3.8 million versus a positive contribution of € 3.9 million in the first half of 2022.   

EBIT came to € 54.8 million, posting growth of 35.6% compared to € 40.4 million in first half 2022. The ratio to revenues increased from 5.3% in first half 2022 to 6.4% in first half 2023. 

Financial expense totalled € 11.0 million and was higher than in the first half of 2022 (€ 9.1 million) because the rise in interest rates affected the variable-rate part of the loan portfolio.

Tax expense was substantially unchanged at € 10.8 million (€ 10.3 million in the same period of 2022).

The group reported net income of € 31.4 million (€ 20.8 million in the first half of 2022).

Free Cash Flow was positive for € 45.0 million (€ 41.2 million in first half 2022), including the effect of the greater recourse to factoring on account of the increase in revenues.

At 30 June 2023 shareholders’ equity, excluding minority interests, stood at € 258 million, up from € 230.7 million at 31 December 2022.

Net financial debt before IFRS 16 totalled € 185.3 million at 30 June 2023, down from € 224.3 million at 31 December 2022 and € 216.4 million at 30 June 2022. Including the financial payables for rights of use, in accordance with IFRS 16, the net financial debt at 30 June 2023 amounted to € 250.6 million, versus € 294.9 million at 31 December 2022 and € 285.2 million at 30 June 2022. 

At 30 June 2023 the Group had committed credit lines in excess of its requirements for € 284.0 million.


Since the close of the period there have been no significant events that could have an impact on the economic, patrimonial and financial information presented herein.


Visibility as to the automotive market trend in 2023 remains limited due to the uncertainties relating to the macroeconomic evolution in a context of high inflation and still rising interest rates.

For 2023, S&P Global (IHS) expects global car production to grow by 5.3% on 2022, with Europe up 11.8%, NAFTA up 8.2%, India up 7.2% and South America and China substantially unchanged.

As far as raw materials and energy are concerned, since the beginning of the year prices have been trending downwards, but they remain high and very volatile.

Assuming there are no further factors that could cause a deterioration of the macroeconomic scenario from today’s levels, for 2023 the Sogefi Group expects to see mid-single-digit revenue growth, in line with forecasts for the automotive market, and higher profitability, excluding non-recurring charges, than that of 2022.