Ebusco increases production capacity in collaboration with assembly partners

Ebusco provides update on its performance

Deurne, 27 July 2023 – Ebusco (Euronext: EBUS) today provides an initial insight into its figures for the first half of 2023. As a result of previous supply chain disruptions and ongoing labour shortages, the company is adjusting its expectations for 2023. By accelerating production capacity increases with assembly partners, the company is targeting an improved result for the second half of 2023. 

Market conditions first half 2023

As communicated earlier, Ebusco is facing material shortages due to supply chain disruptions. Although the supply chain is recovering, combined with ongoing labour shortages, this is leading to more delays in bus production than expected. Due to the headwinds, financial performance in the first half of the year remains below Ebusco’s expectations:

• Turnover is expected to be around €41 million.
• EBITDA loss expected to be €44 million.

Mitigating actions

To meet current orders and facilitate future growth in its order book, Ebusco is now pushing to accelerate the scale-up of its production capacity with the help of three assembly partners in Europe and abroad. Not only have all partners individually already proven their ability to ensure the quality of assembly, they are also helping to accelerate production and improve gross margin. Moreover, with the planned opening of the production facility in Rouen, France and an external casco assembly partner, Ebusco is working to further scale its casco production.

Outlook and strategic priorities beyond 2023

Partly due to the lower number of buses contributing to turnover, it is no longer realistic to assume that the previous expectations for turnover as well as positive EBITDA will be met in 2023. With the current actions, Ebusco expects to record a significant improvement in the operating result for the second half of 2023 compared to the first half of the year. With this, Ebusco nevertheless expects a significant increase in sales over the full year 2023 compared to 2022. In 2024, the company expects to be EBITDA positive.

On 9 August 2023, Ebusco will announce the results for the first half of 2023 and further details regarding the planned actions.

Disclaimer

Some statements in this press release may be considered ’forward-looking statements’. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industry in which we operate and management’s beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only express views as at the date of this press release and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities law.

This press release contains inside information within the meaning of Article 7(1) of the European Market Abuse Regulation (MAR). This press release was distributed at 7:30am on 27 July 2023.