SAF-HOLLAND SE Announces Record Year and Substantial Dividend Increase

SAF-HOLLAND SE, a leading supplier of trailer and truck components, reported a significant increase in its annual financial performance for the fiscal year 2023, marking a record year for the company. Group sales rose by 34.6% to EUR 2.106.2 million, driven by strong demand across all regions and the inclusion of Haldex AB in the consolidation scope. The company's adjusted EBIT margin also saw a notable increase to 9.6%, up from the previous year's 8.0%.

Net profit for the period increased by 31.5% to EUR 80.5 million, thanks to robust operating performance and a significantly reduced leverage ratio of 1.8x. SAF-HOLLAND attributes part of its success to the acquisition of Haldex AB, which contributed EUR 399.4 million to the Group's sales. The product mix shift towards a higher aftermarket business share, achieving over 30%, has also been instrumental in the company's impressive results.

Given the strong financial results, SAF-HOLLAND announced a proposal to increase its dividend to EUR 0.85 per share, up from EUR 0.60 in the previous year, representing a payout ratio of about 48% of the net profit. This move underscores the company's confidence in its financial health and commitment to shareholder returns.

The outlook for the fiscal year 2024 remains cautious due to anticipated variations in demand for commercial vehicle components across different regions. Despite expecting a slight dip in sales, SAF-HOLLAND is optimistic about maintaining an adjusted EBIT margin between 9.0% and 9.5%. The company plans to continue investing in its medium and long-term growth targets and product innovation, aiming for an investment ratio of up to 3% of consolidated sales.