22 February 2024
If you are covering Rolls-Royce FY23 results, please find a comment below from Jarek Pominkiewicz, equity research analyst at Quilter Cheviot:
“Rolls-Royce, the British engineering and defence giant, has reported a remarkable performance in its full year results for 2023, with profits more than doubling from the previous year.
“The company posted an underlying operating profit of £1.7 billion, a five-fold increase from the £315 million recorded in 2022.
“The company delivered a positive surprise with its Power Systems and Defence segments, which both exceeded the guidance and showed robust growth. Power Systems, which provides engines and power solutions for various industries, saw a 16% increase in revenue and a 44% increase in profit, driven by strong demand in marine, rail and power generation markets. Defence, which supplies military aircraft engines and equipment, achieved a 12% increase in revenue and a 30% increase in profit, benefiting from favourable contract mix and operational efficiency.
“The impressive results were supported by the company’s transformation programme and strategic initiatives, which aimed to improve its commercial optimisation and cost efficiency across the group. The company said it expects to deliver more than 50% of the mid-term improvement in operating profit and free cash flow by the end of 2024, indicating that the recovery is very much on track.”
