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Despite turbulence caused by external circumstances, VDL Groep's turnover in the first half of 2022 has increased. Trade conflicts, the coronavirus pandemic, and the war in Ukraine have resulted in disrupted supply chains, leading to challenges in the timely availability of materials and related price fluctuations. Additionally, various cost increases, such as those for energy, have adversely affected the operational net result. Due to the high order backlog, the outlook for the second half of the year remains positive.
After the first six months of 2022, the combined turnover amounts to 2.6 billion euros. This is a 4 percent increase compared to the 2.5 billion euros after the first half of 2021. The operating net profit has decreased by 22 percent after the first two quarters of 2022, from 69 million euros last year to 54 million euros. The order portfolio of VDL Groep (excluding the Automotive Assembly division) has increased from 1,718 million euros at the end of 2021 to 1,850 million euros in week 26. The number of employees has risen by 280 colleagues in that period to 15,925 employees.
President and CEO Willem van der Leegte of VDL Groep: “The positive is of course that our VDL companies have been able to achieve revenue growth despite challenging circumstances. The decline in turnover at the Auto Assembly division is a logical consequence of material shortages, which meant that VDL Nedcar was unable to produce a large number of days. Outside the Auto Assembly division, we have been able to grow our revenue organically by over a quarter. A fantastic achievement by our employees.”
The turnover of the Supply division has increased from €885 million mid-last year to €1,087 million. This 23 percent increase can be explained by the fact that the VDL companies active in this division have grown across the board. The focus on high-quality innovation and digitalisation has also further strengthened this position. An example of VDL Groep’s broader digitalisation strategy is the platform OrderOn.com, launched in April, for on-demand ordering of metal products, which simplifies and speeds up the ordering process for customers. Hundreds of users have already registered. In the coming period, investment will be made in further expanding the platform.
The turnover of VDL Nedcar stands at €856 million after two quarters. Compared to €1,125 million a year ago, this is a decrease of 24 percent. Due to global developments, VDL Nedcar has frequently faced material shortages, resulting in significant production losses. In these turbulent circumstances, which are accompanied by many uncertainties, our employees in Born have performed fantastically. In terms of quality and delivery reliability, we receive compliments from our client BMW Group and third parties. Two years ago, we were awarded a bronze JD Power Award; last June, we received a silver award as the second-best car factory among all car factories in Europe and Africa. Additionally, the VDL Nedcar MINI Cabrio was chosen as the best in its class.
Another milestone we recently celebrated with our employees is the production of the millionth car for BMW. Just before the summer holiday, we extended our collaboration with BMW by 4 months. This means the original end date of 1 November 2023 shifts to 1 March 2024.
An advantage of this extension is that VDL Nedcar receives extra time to further develop its future plans. To increase the chances of a successful future for our car factory, we are also working on an alternative scenario, besides remaining as a car manufacturer. In that scenario, we aim to develop VDL Nedcar into a centre for mobility and innovation. This could involve the production of different vehicles, in smaller series, combined with other mobility activities, such as innovations in electrification, connectivity, autonomous driving, and services.
The turnover of the Bus division has increased by 34 percent, from €187 million a year ago to €251 million. In the first half of 2022, VDL Bus & Coach once again became the European market leader with 242 registered electric buses. We have now reached the milestone of 200 million electric kilometres: 1,300 electric VDL Citeas travel more than 240,000 kilometres each day across 11 European countries and 77 cities and regions. These 200 million electric kilometres (equivalent to circling the world 5,000 times) save nearly 28 million kilograms of CO2 emissions.
The new generation VDL Citea, fully based on an electric drive system, will be presented at InnoTrans in Berlin (20 to 23 September 2022) and will be delivered from this autumn. It now involves more than 550 new electric Citeas sold to customers in a large number of European countries. The new generation VDL Citea has won three major awards this year. In spring, for its design, winning both the prestigious Red Dot Award and an iF Design Award. In July, the EBUS Award, an important German environmental prize for the public transport industry, was awarded in the ‘manufacturer of e-buses’ category.
The cornerstone laying of the new factory in Roeselare, Belgium, took place in February. This new state-of-the-art and CO2-neutral factory will become VDL’s centre for e-mobility from early 2023, alongside Valkenswaard. This will enable an even better response to market needs and demands. We are also strengthening our ambitions with this: we want to remain at the forefront in Europe in the field of e-mobility.
The VDL companies that are part of the Final Products division generated a combined turnover of 400 million euros in the first half of 2022, compared to 305 million euros in the same period of 2020. This 31 percent increase can be explained by the fact that our companies in this division are well positioned across the board.
The order book of VDL Groep (excluding the Auto Assembly division) continued to grow during the current third quarter and has surpassed 2 billion euros, a historical record. We expect to succeed in converting the order book growth into higher revenue in the second half of 2022, unless uncertainties arising from disruptive external factors on the global stage interfere. Another indicator of revenue growth is the expectation that the headwinds regarding material availability are likely to ease somewhat.
Power through collaboration. This is the foundation of VDL Groep, the international industrial family business headquartered in Brainport Region Eindhoven. Founded in 1953, nearly 70 years later, the third generation of the Van der Leegte family has been at the helm since 2017. VDL Groep employs over 15,000 people across 19 countries. The group consists of 106 operating companies, each with its own specialisation, working closely together. The activities of these companies can be summarised into the 'five worlds of VDL': Science, Technology & Health, Mobility, Energy & Sustainability, Infratech, and Foodtech. The combined annual turnover in 2021 of VDL Groep amounted to €4.995 billion.
Communications Director and spokesperson for VDL Groep
E: m.timmers@vdl.nl
Tel: +31 6 14767066
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