German battery manufacturer Varta AG faces headwinds as it revises its full-year revenue projection for 2024. The anticipated figure now falls between €820 million and €870 million, a decrease from the previous forecast of at least €900 million. The company attributes this adjustment to a significant deterioration in the energy storage systems market, particularly during the second quarter of this year. Varta serves the AC (alternating current) energy storage segment, which is losing market share domestically. Additionally, delays in launching the DC (direct current)-coupled high-voltage storage system, VARTA.wall, contribute to the wide forecast range1.
Challenges and Unrealistic Targets
Varta had previously signaled a downgrade in April, struggling to meet goals outlined in a restructuring plan agreed upon with banks last year. Despite aiming for “profitable growth” by the end of 2026, the company faced hurdles such as volatile customer orders, supply chain disruptions, and a cyber attack. The hacking incident halted production for weeks and led to the postponement of its 2023 financial results. The restructuring plan, initially negotiated with majority shareholder Michael Tojner, emerged after Apple reduced production of its AirPods headphones, which relied on Varta technology1.
The energy storage market landscape remains challenging, and Varta’s ability to navigate these obstacles will determine its future trajectory. As the company seeks to recharge its performance, it grapples with both market dynamics and internal operational issues.
SOURCE: Ref Image from Yahoo Finance
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