The headquarters of battery manufacturer Varta in Ellwangen (Germany). (picture alliance/Sina Schuldt/dpa)
The strong demand for lithium-ion batteries, which are used for example to power wireless headphones, is accelerating the growth of battery manufacturer Varta. "To this end, we are investing massively in the expansion of our production capacities," CEO Herbert Schein announced in Ellwagen on Tuesday. The expansion is expected to cost between 95 and 110 million euros instead of the 75 to 90 million euros previously planned.
It was only at the beginning of September that Varta announced that it would expand production to more than 150 million cells per year by 2022. The background is the uninterrupted high customer demand in a market that is growing by more than 30 percent annually.
In the first nine months of the year, the S-Dax-listed company’s turnover increased by 22 percent year-on-year to 242.8 million euros. Adjusted earnings before interest, taxes, depreciation and amortization even increased by around two thirds to 63 million euros. Net income saw a similar sharp rise to 33 million euros.
Due to the positive business development, Varta also raised its annual forecast once again. Sales are now expected to increase to between 330 and 340 million euros this year, which is a 10 million euro increase in the target range compared to previous expectations.
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