VIA optronics AG Expects Breakeven Net Profit on a Run-Rate Basis by End of Year 2022

Rhea-AI Summary

VIA optronics AG (NYSE: VIAO) announced cost containment and pricing initiatives aimed at enhancing margins amid inflationary pressures. Effective July 2022, VIA will implement broad price increases to offset rising costs in labor, energy, transportation, and materials. The company is also consolidating suppliers for efficiency, while optimizing production at its Nuremberg facility. CEO Jürgen Eichner stated these measures are targeted to achieve breakeven net profit as they exit 2022, restoring historical margins and positioning VIA for sustainable profitability.

Positive

• Initiation of broad price increases effective July 2022 to address inflationary pressures.
• Consolidation of suppliers to optimize costs and improve efficiencies.
• Improvements in production efficiency at the Nuremberg facility.

Negative

• Dependence on price increases may affect competitiveness if competitors do not follow suit.
• Achieving breakeven net profit may be challenging amidst ongoing inflation and supply chain issues.

Company announces margin enhancing initiatives

Initiation of improvements to stabilize the global cost structure

NUREMBERG, Germany--(BUSINESS WIRE)-- VIA optronics AG (NYSE: VIAO) (“VIA” or the “Company”), a leading supplier of interactive display systems and solutions, today announced a series of cost containment and pricing initiatives designed to combat inflationary pressures and drive margin improvement in the second half of 2022 and beyond.

VIA is taking actions in the following areas:

• Pricing: Further implementation of broad price increases to account for inflationary pressures related to labor, energy, transportation, and materials, starting in July 2022
• Supply Chain: Consolidation of suppliers to optimize costs and achieve efficiencies of scale
• Production Efficiencies: Initiation of improved cost structure due to full operating capacity at Nuremberg, Germany facility

Jürgen Eichner, Chief Executive Officer and Founder of VIA optronics AG, commented, “We are taking enterprise-wide actions to mitigate the impact of higher costs related to the inflationary environment and global supply chain challenges. These actions include both internal initiatives such as improving production efficiencies and streamlining resources, as well as measures related to customer pricing and supplier agreements. We are targeting breakeven net profit on a run-rate basis as we exit 2022. Overall, we believe these initiatives will help us restore our historical margin profile and position the Company for long-term sustainable profitability.”

About VIA:

VIA is a leading provider of interactive display solutions for multiple end markets in which superior functionality or durability is a critical differentiating factor. Its customizable technology is well-suited for high-end markets with unique specifications and demanding environments that pose technical and optical challenges for displays, such as bright ambient light, vibration and shock, extreme temperatures, and condensation. VIA’s interactive display systems combine system design, interactive displays, software functionality, cameras, and other hardware components. VIA’s intellectual property portfolio, process know-how, optical bonding, metal mesh touch sensor and camera module technologies provide enhanced display solutions built to meet the specific needs of its customers.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words, without limitation, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement, including, without limitation, the risks described under Item 3. “Key Information—D. Risk Factors,” in our Annual Report on Form 20-F as filed with the US Securities and Exchange Commission. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. Any forward-looking statements contained in this press release are based on the current expectations of VIA’s management team and speak only as of the date hereof, and VIA specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220714005750/en/

Investor Relations for VIA optronics:

Lisa Fortuna

Sam Cohen

Alpha IR Group

VIAO@alpha-ir.com

Phone: +1 312-445-2870

Media:

Alexandra Müller-Plötz

AMueller-Ploetz@via-optronics.com

Phone:+49-911-597 575-302

Source: VIA optronics AG

FAQ

What is VIA optronics AG's plan to enhance margins in 2022?

VIA optronics AG plans to implement price increases, consolidate suppliers, and improve production efficiencies to enhance margins and combat inflation.

When will the price increases by VIAO take effect?

The price increases will take effect in July 2022.

What challenges is VIAO facing regarding its cost structure?

VIAO is dealing with inflationary pressures affecting labor, energy, transportation, and materials costs.

What is the target profit for VIA optronics AG as they exit 2022?

VIA optronics AG is targeting breakeven net profit on a run-rate basis as they exit 2022.