ELLWANGEN (dpa-AFX) - The crisis-ridden battery group Varta sees itself on track for its annual targets after a decent third quarter. On Friday, the SDax group from Ellwangen surprisingly reported preliminary quarterly figures which, according to the company, exceeded market expectations. The share price reaction was correspondingly positive, and investors, who had been battered for a long time, allowed the share price to rise significantly from a low level.

At midday, the share price was up 6.4 percent at 21.97 euros. For most shareholders, however, this is likely to be little consolation, as the share was still worth around 60 euros before it crashed in the fall of last year. And even before that, they had already been hit by Varta's problems, with speculation driving the share price to over €180 at its peak in spring 2021. A steady decline then set in a good two years ago.

Varta had previously been one of the growth stars on the stock market, driven by the booming wireless headphones market, where the company saw itself as the global market leader with its rechargeable lithium-ion button cells. However, competition concerns soon began to emerge, until demand for consumer electronics also collapsed, plunging Varta into crisis. The business with household batteries and home storage systems as well as the future business with its own round cell for electric car batteries could not compensate for this.

Several profit warnings followed and Varta slipped into the red as demand collapsed due to high energy and raw material costs. In addition to a small capital increase, the company reached an agreement with banks on a restructuring concept. Hundreds of jobs were cut in a reorganization that is to last until next year.

In the months from July to September, the company generated a good 215 million euros in turnover. This was a good tenth more than in the weak same period last year. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization amounted to 29.4 million euros, after Varta had been slightly in the red a year earlier.

The management confirmed its forecast for the year. Sales of around 820 million euros are to be achieved, while CEO Markus Hackstein expects an operating result of between 40 and 60 million euros. After nine months, revenue stands at 554 million euros and an operating result of 22.6 million euros.

The company will present its detailed quarterly figures on Tuesday (November 14)./men/lew/jha/