Melexis Q4 and FY 2023 results – Full year sales of 964.3 million EUR

Press release - Regulated Information

Intermediate declaration by the Board of Directors
Ieper, Belgium – February 7th, 2024, 07.00 hrs CET

Sales for the full year 2023 were 964.3 million EUR, an increase of 15% compared to the previous year. The EUR/USD exchange rate evolution had a negative impact of 1% on sales compared to 2022. The gross result was 440.2 million EUR or 45.7 % of sales, an increase of 17% compared to 2022. R&D expenses were 11.1% of sales, G&A was at 5.2% of sales and Selling was at 2.2% of sales. The operating result was 261.3 million EUR or 27.1% of sales, an increase of 15% compared to 226.5 million EUR in 2022. The net result was 209.5 million EUR or 5.18 EUR per share, an increase of 6% compared to 197.2 million EUR or 4.88 EUR per share in 2022.

Sales for the fourth quarter of 2023 were 250.5 million EUR, an increase of 12% compared to the same quarter of the previous year and an increase of 1% compared to the previous quarter. The EUR/USD exchange rate evolution had a negative impact of 2% on sales compared to the same quarter of last year and a negative impact of 1% on sales compared to the previous quarter. The gross result was 111.7 million EUR or 44.6% of sales, an increase of 12% compared to the same quarter of last year and a decrease of 2% compared to the previous quarter. R&D expenses were 11.9% of sales, G&A was at 5.7% of sales and Selling was at 2.4% of sales. The operating result was 61.5 million EUR or 24.6% of sales, an increase of 6% compared to the same quarter of last year and a decrease of 13% compared to the previous quarter. The net result was 49.8 million EUR or 1.23 EUR per share, a decrease of 4% compared to 52.2 million EUR or 1.29 EUR per share in the fourth quarter of 2022 and a decrease of 12% compared to the previous quarter.

Dividend

The Board of Directors approved on February 5th, 2024 to propose to the Annual Shareholders meeting to pay out over the result of 2023 a total dividend of 3.70 EUR gross per share. This amount contains an interim dividend of 1.30 EUR per share which was paid in October 2023 and a final dividend of 2.40 EUR per share which will be payable after approval of the Annual Shareholders meeting. The Melexis shares will start trading ex coupon on May 15, 2024 (opening of the market). The record date is May 16, 2024 (closing of the market) and the dividend will be payable as from May 17, 2024.

Outlook

Melexis expects sales in the first quarter of 2024 to be in the range of 240 to 245 million euro. For the full year 2024, we expect sales to be around 1 billion euro, with a gross profit margin above 44% and an operating margin above 25%, all taking into account a EUR/USD exchange rate of 1.08. For the full year 2024, Melexis expects CAPEX to be around 70 million EUR.

Business update

In the fourth quarter of 2023, sales came out at the high end of the guidance at 250.5 million euro. Sales for the full year increased by 15% compared with 2022. Electrification and the growing need for comfort and safety applications are the driving forces behind these results. The outperforming product lines of 2023 were current sensors, embedded motor drivers and pressure sensors. The magnetic position sensors product line continued to thrive in absolute numbers as well.

Sales to automotive customers represented 91% of total sales in the fourth quarter of 2023 and 90% of total sales in the full year 2023.

Quote from CEO Marc Biron

‘’We unveiled our strategy for the coming years at our Capital Markets Day in November 2023. In the automotive business, we aim to grow at a 10% CAGR by 2030 with innovative solutions for powertrain, thermal management, battery, e-braking, e-steering, and lighting applications. Beyond automotive, we will expand our presence with four emerging product lines: sustainable world, alternative mobility, robotics, and digital health. We aim for 15% or higher annual sales growth in these areas by 2030.

We believe that our updated strategy will provide us with a competitive advantage in the market. Our people have the talent, the technology, and the creativity to deliver the best products that align with the long-term societal trends and create new business opportunities.

Even if our short-term results are impacted by uncertainties in the market and some inventory corrections, we are confident about our long-term growth objectives. Backed by another solid design win performance in 2023 and our innovation engine delivering impressive and unique products, we look forward to a promising future.’’

Quote from CFO Karen van Griensven

“As part of our strategy, we have initiated an organizational update to foster innovation, optimization, and growth in this new era. The operational expenses linked to this strategic project were included in Q4 2023.”

The statutory auditor, PwC Bedrijfsrevisoren BV / Reviseurs d’Entreprises SRL, represented by Griet Helsen, has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the consolidated income statement, the consolidated statement of financial position and the consolidated statements of cash flow, and that the accounting data reported in the press release is consistent, in all material respects, with the consolidated income statement, the consolidated statement of financial position and the consolidated statements of cash flow, from which it has been derived.

Financial Calendar

• Publication Q1 Results 2024: April 24, 2024 (at 7 hrs CET)
• Annual Shareholders Meeting: May 14, 2024
• Dividend pay date: May 17, 2024 (ex coupon on May 15, 2024)
• Publication Q2 Results 2024: July 31, 2024 (at 7 hrs CET)
• Publication Q3 Results 2024: October 30, 2024 (at 7 hrs CET)
• Publication FY 2024 Results: February 5, 2025 (at 7 hrs CET)

For more information:
Investor Relations
Email: investor@melexis.com

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