For the first quarter of 2023 (Q1 2023) Safran has reported narrow-body ASKs were at 100% (on average) of 2019. Q1 2023 revenue increased 29.4% to €5,266 million compared to Q1 2022. Growth was mainly fuelled by Propulsion and Aircraft Interiors activities. The change in scope was €15 million. Currency impact of €175 million reflects a positive translation impact of USD revenues, with an average €/$ spot rate of 1.07 in Q1 2023 (1.12 in Q1 2022). €/$ hedge rate was at 1.13 (1.15 in Q1 2022). On an organic basis, Q1 2023 revenue increased by 24.7%.
Propulsion increased by 34.9% driven by a strong civil aftermarket activity (+38.1% in $) supported by a high level of spare parts sales for CFM56 and higher-than-expected revenue of LEAP RPFH2 contracts. High thrust engines spare parts' sales displayed a decent in growth during the quarter. In Q1 2023, LEAP deliveries stepped up by 53%, reaching 366 units compared with 239 in Q1 2022, a sequential increase of 13% from 324 units in Q4 2022 and are in line with the full-year target. Military engine activities were up mainly due to higher M88 deliveries. Helicopter turbine activities increased slightly both for OE and services;
Equipment & Defence was up 10.3% driven by strong aftermarket services in all division. OE sales were constrained by industry-wide supply chain difficulties and by downwards revised demand. Aftermarket activities have been particularly strong for carbon brakes, nacelles and aero systems activities. Electronics & Defence activities were flattish.
Aircraft Interiors revenue increased by 37.7% driven by spare parts deliveries both for seats and cabins. OE activities increased to a lesser extent mainly for cabin. Business class seats deliveries were down at 324 in Q1 2023 compared to 346 in Q1 2022.
The hedge book amounted to US$53.7 billion in April 2023, compared to US$52.6 billion in January 2023. 2023 is hedged: targeted hedge rate of US$1.13, for an estimated net exposure of US$10.0 billion. 2024 is hedged: targeted hedge rate between US$1.13 and 1.15, for an estimated net exposure of US$11.0 billion. 2025 and 2026 are hedged: targeted hedge rate between US$1.12 and 1.14, for a respective estimated net exposure of US$12.0 billion and US$13.0 billion. 2027 is partially hedged: US$10.2 billion hedged out of an estimated net exposure of US$14.0 billion. £1.00 = €1.13 / US$1.25)
