NEU-ISENBURG (dpa-AFX) - The commercial vehicle supplier Jost Werke has closed the past year with a record operating result despite declining sales. The SDax group thus benefited surprisingly clearly from cost reductions. In view of the increased profitability, Group CEO Joachim Dürr sees his plans for further growth in the future confirmed. The Jost share rose by 1.1 percent in morning trading.

Based on preliminary figures, operating profit (adjusted EBIT) climbed by 13.7 percent year-on-year to EUR 140.8 million in 2023, as the company announced on Tuesday in Neu-Isenburg, Hesse. Jost Werke thus exceeded both its own targets and analysts' expectations. Group CEO Dürr had envisaged growth in the high single-digit percentage range.

The company also surprised positively with a strong increase in free cash flow. In the past year, Jost Werke generated a free cash flow of 112.3 million euros, reportedly the highest in the company's history. "This has allowed us to further improve our net debt and leverage ratio," said CFO Oliver Gantzert. The manager believes that the foundations have been laid for the Group to continue to grow strategically.

However, Jost Werke has recently been confronted with declining sales. In the twelve months under review, revenue fell by 1.2 percent to around 1.25 billion euros. This was mainly due to negative exchange rate effects. Adjusted for currency and takeover effects, turnover remained more or less stable. Jost Werke compensated for the weak demand from the agricultural sector with the sale of products from the transportation sector. Analysts had expected turnover to be around this level.

The Management Board intends to announce the final figures and a dividend proposal for the past year on March 26. Jost Werke will then also provide an initial outlook for the current year./ngu/tav/stk