VARTA AG revises 2024 revenue outlook amid energy storage slump

ELLWANGEN - VARTA AG, a technology company specializing in battery production, has lowered its revenue forecast for the fiscal year 2024. The company now anticipates revenues to be between €750 million and €800 million, a decrease from the previously projected range of €820 million to €870 million.

The revision is primarily attributed to a continued downturn in the market for energy storage solutions and an expected decline in sales within its Lithium-Ion Large Cells division. Despite stable sales in household and hearing aid batteries, VARTA AG faces challenges in its Energy Storage Systems unit. The company has experienced delays with the launch of its new VARTA.wall product, a DC-coupled high-voltage storage system, and a general market demand weakness for energy storage systems.

Further impacting the company's performance is the negative effect on VARTA AG's public image following the initiation of StaRUG proceedings, which has led to a significant drop in sales figures for energy storage systems. The broader forecast range also reflects the uncertainty caused by volatile production and sales volumes in the Lithium-Ion Large Cells segment and potential postponements in year-end settlements.

This adjustment indicates a cautious approach by VARTA AG in navigating the current market conditions and internal challenges. The company's revised forecast takes into account several variables that could influence its financial performance, underscoring the difficulties in accurately predicting revenues for the coming fiscal year.

The information presented in this article is based on a press release statement from VARTA AG.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com