Arteche's sales increased by 21.1% year-on-year at the end of the first half of 2022, reaching 156 million euros

8 Sep 2022
•The order backlog of the first half of the year grew by 51% compared to the previous year, reaching 192 million euros. •Direct Margin, in absolute terms, increased by 9.6% in the first half of the year to 45.2 million euros, driven by the growth in sales volumes and thanks to the price recovery strategy. •EBITDA, compared to the previous year, grew by 23.1% to 13.1 million euros in a context of high pressure on materials and logistics costs, increasing the margin to 8.4% of sales. •Net income increased to 3 million euros, an increase of 77% compared to the previous year. •At the end of June, Net Financial Debt stood at 54.3 million euros, representing an improvement in the leverage ratio (1.90 times EBITDA; compared to 1.95 times at December 31, 2021).

Mungia (Bizkaia), September 9, 2022.- Arteche has presented its results, subject to limited review, for the first half of the year, one year after its debut as a listed company on BME Growth. The company is successfully fulfilling the lines set out in its Strategic Plan to 2023 and the impact of the latest inorganic operations (the acquisitions of Esitaş and Smart Digital Optics), as well as the joint venture with Hitachi Energy at its Vitoria-Gasteiz plant, are delivering positive results, which are reflected in the figures for the first half of 2022.

Positive financial figures

At the end of June, Arteche reported a net profit of 3 million euros, compared to 1.7 million euros a year earlier, and revenues of 156 million euros, representing a 21.1% increase over the same period of the previous year. All of the group's regions and businesses have contributed positively to this growth and there is still potential to achieve, demonstrating the strength of the company's business strategy at a time of transformation of the electricity sector towards more sustainable and decentralized models.

Gross operating profit (EBITDA), in a context of high pressure on material and logistics costs, reached 13.1 million euros, equivalent to an EBITDA margin of 8.4%, compared to 8.3% a year ago. Financial debt, on the other hand, has an average cost of 2.4% and an average maturity of 4.7 years.

On July 6, 2022, following approval at the first Shareholders' Meeting since its incorporation into BME Growth, Arteche paid a final dividend to its shareholders amounting to 30% of net income for the year 2021.

A continuously growing business

Immersed in a context of growth and strong demand in the sector, during the first half of the year, Arteche's order book has grown by 51%, reaching 192 million euros. This growth in sales in the different business lines is due to different reasons: 

  • In the electrical measurement and monitoring business, Arteche's growth is above expectations. It thus remains in the top 3 leading companies in the manufacture and sale of High Voltage transformers and among the top 5 European players in Medium Voltage, as a result of the integration of the Esitaş business, which was acquired just over a year ago. In addition, the innovation applied in all business lines has been materialized in the launching of new products in the first half of the year, such as remote monitoring systems for transformers and new sustainable gas alternatives in GIS (Gas Insulated Switchgear) transformers. In the Asian market, Arteche has been the first company to successfully pass the demanding internal arc tests in China on transformers with an intensity of 245Kv.
  • Market share exponentially increases in digital measurement. Increasingly strong growth reinforces the company's leadership position after acquiring a 100% stake in SDO (Smart Digital Optics), headquartered in Australia. This move has propelled Arteche as one of the leaders in this technology, which still has room for growth. 
  • The automation business is growing through new customers and markets thanks to new approvals and product ranges that are already materializing in sales in the Asia-Pacific market, introducing the Arteche brand in the Indian railroad market. In North America, the Comisión Federal de Electricidad (CFE) has chosen Arteche as the successful bidder of a supply agreement for the protection and control of Mexico's power grid. Arteche is carrying out the final tests of the new protection and control platform, which will be launched in the coming months of 2023.
  • In the network reliability business, growth was in line with expectations. The company has opened a new, more efficient plant in Brazil with a design based on lean manufacturing and maximum operational efficiency. It is a milestone that coincides with the recovery of the recloser market in this geography, following the lifting of restrictions as a result of the Covid-19 pandemic. 
  • Business figures for the United States and Australia are noteworthy. The first orders from the Australian market in the field of power quality and the boost given to renewable energies in the United States have positioned these markets among the relevant data for Arteche in the first half of the year. 

The financial and business data at the end of June, subject to limited review, suggest that the company will continue in line with the 2023 Strategic Plan, which sets a trend of increasing sales and EBITDA to match or improve on the results obtained to date.

Social and environmental commitmen

In line with ESG (Environment, Social and corporate Governance) criteria and following the objectives set out in the 2030 Sustainability Strategic Plan, Arteche continues to take steps to fulfill its commitments in the areas of people, society and the planet and to inform its stakeholders in a transparent manner through its Annual Report and its Non-Financial Information Statement (or Sustainability Report).

On the environmental front, during the first half of the year, the company reduced direct Scope 1 emissions by 7% with respect to the previous year, energy consumption and Scope 2 emissions by 5%, and hazardous waste by 20%. On a social level, we continue to work closely with local academic and technological institutions, in a bid to incorporate the necessary talent to face the future challenges to be tackled in the coming years. Similarly, the number of female hires increased by 5% compared to the first half of 2021 and, during the same period of time, the presence of women in management positions increased by 2%. In addition, the employee turnover rate has decreased by 4%.

The company also remains committed to best practices. 100% of the operations carried out by the people belonging to the company have followed strict protocols of good governance, among which the beginning of the implementation of an ICFR system, which has already begun with the audit and diagnosis phases, as well as the definition of a risk control map.

Arteche is a committed company that works in an ethical and responsible manner out of conviction and values. This aspect, which is increasingly recognized in society, makes it possible for institutions such as the Provincial Council of Bizkaia, which recently recognized Arteche with the Esker ON award for the BIOAT project, to join the recognition previously received for exemplary behavior in ESG by BBK and El Correo or Forbes and Credit Suisse. 

Arteche also materialized its commitment to emissions neutrality by joining the "Climate Ambition Accelerator" program, an initiative within the framework of the Global Compact that aims to achieve zero emissions by 2050. This commitment is in addition to others such as the creation of the "Arteche Forest", which already has more than 400 trees planted and offsets 50 tons of CO2.

Coinciding with the company's 75th anniversary, Arteche has launched the Sumando Energías Solidarity Race. After the sum of the kilometers of all the participants has made it around the world, the objective is to facilitate the supply of electricity for a whole year to 75 underprivileged families in the different regions where the event takes place. 

Caritas professionals are determining which families will receive the electricity supply and, once this process is completed, Arteche will sign the corresponding agreements and the energy supply will begin on October 17, World Day for the Eradication of Poverty.

To carry out this solidarity initiative, in addition to the commitment of Caritas, the sum of energies of Iberdrola as gold sponsor has been essential, as well as Jema Irizar Group, Hitachi, Shemar, Krempel, Atlantic Forwarding Spain, Nynas, DSV, Urrutia Logistika and Omicron as silver and bronze sponsors.

Contact for further information

Press release 

(in spanish only)

Results presentation

About Arteche Group

Founded in 1946, the Arteche Group operates in the electrical sector, from generation to distribution, specializing in the electrical equipment, components, and solutions industry. Within this framework, the Arteche Group is among the TOP 3 world leaders in the instrument transformer market, number 1 in the auxiliary relay market, and maintains a regional leadership position in the rest of the products, especially those aimed at highly demanding and value-added markets, such as renewable generation and the railway sector.

The Arteche Group's business is focused on enabling the transmission and distribution of electric power from any generation plant to the end user with efficiency, quality, and reliability. This is why the company invests recurrently in R&D&I, with the intention of improving the quality and efficiency of its products, innovating in the development of new products, and offering the customer a differential added value. Arteche is currently present in more than 175 countries with commercial distribution capabilities; it has 13 factories in Europe, America and Asia, including 6 research centers; and employs more than 2,400 people worldwide.

Arteche's sales increased by 21.1% year-on-year at the end of the first half of 2022, reaching 156 million euros