Friday 20 March 2020, 08:00
Hydratec achieves higher operating profit and lower net profit.
Hydratec’s revenue increased by €11 million to €220 million in 2019. Revenue at Food & Industrial Systems increased autonomously by 3.5%. Due to higher costs, Food & Industrial companies experienced a drop in net profit. Plastic Components experienced 7.9% growth, 2.5% of which was autonomous. While results here substantially improved, they are not yet at the desired level. The consolidated operating profit amounted to €10.2 million and as such is 14.7% higher in comparison to last year (€8.9 million). Due to a normal tax burden in 2019, compared to tax income in 2018, the net profit was lower and amounted to €6.6 million compared to €8.5 million last year. The profit per share amounted to €5.16.
Bart Aangenendt (CEO) on the past year:
“Following a good start in 2019, profit in the second half of the year dropped due to relatively high engineering revenue at disappointing margins. Revenue over all of 2019 increased by 5.4%, of which 2.1% was autonomous. Our market position within Food & Industrial Systems was further expanded due to the acquisition of Stork and Rollepaal.”
Key figures 2019 vs. 2018
| 2019 | 2018 | |
| (millions of euros) | ||
| Net revenue | 219.6 | 208.4 |
| Gross margin | 108.5 | 105.8 |
| Operating profit | 10.2 | 8.9 |
| Net profit attributable to shareholders | 6.6 | 8.5 |
| Net profit per share (euros) | 5.16 | 6.63 |
| Dividend per share (euros, 2019 proposed) | – | 2.70 |
| Solvency ratio | 31.2% | 35.3% |
2019 Annual Report
The 2019 Annual Report will be published on Thursday 2 April 2020. The audit currently has not yet been fully completed.
Proposed Dividend
Due to the current highly uncertain economic situation caused by the corona pandemic, it is proposed that no dividend be paid over 2019. In the autumn of 2020, we will decide whether there is scope for an interim dividend.
Outlook for 2020
As always, macroeconomic developments such as volatile exchange rates, trade barriers, and now the coronavirus pandemic, have an effect on our customers’ willingness to invest. The companies’ market position, each in its own niche, remains strong, however.
Due to the exceptional circumstances caused by the coronavirus crisis, we are unable to make more specific statements about the expected results for 2020. We are currently in the process of identifying the possible consequences and to take the necessary measures needed to limit the impact on Hydratec Industries.
Hydratec Industries NV Profile
Hydratec is a listed, globally operating specialist in industrial systems and components and has two core activities:
- Food & Industrial Systems: Design and production of systems by:
- Royal Pas Reform Hatchery Technologies in Zeddam (NL)
- Lan Handling Technologies in Tilburg (NL) and Halfweg (NL)
- Stork Plastics Machinery in Hengelo (NL)
- Rollepaal Holding in Dedemsvaart (NL)
- Plastic Components: Design, production and assembly of plastic components by:
- Timmerije in Neede (NL)
- Helvoet Rubber & Plastics Technologies with production facilities in Hellevoetsluis (NL), Tilburg (NL), Lommel (BE), München (DE), Pune (IN), Kaniow (PL) and Wroclaw (PL)
Hydratec Industries is listed on the NYSE Euronext Amsterdam NV stock exchange (ISIN NL0009391242, ticker: HYDRA).