Friday 6 November 2020, 08:00
Hydratec Industries experiences increase in third quarter revenue; positive net profit
AMERSFOORT – Hydratec Industries’ 2020 third quarter revenue was considerably higher than its second quarter revenue in which COVID-19 had a major impact on revenue and results. Due to this increase, Hydratec Industries posted a positive net profit attributable to its shareholders over the first three quarters of 2020. According to CEO Bart Aangenendt, despite the recovery, it is too early to make any pronouncements concerning the full 2020 financial year.
Third quarter revenue is back in line with the level achieved in the first quarter of this year. Viewed over the year as a whole, revenue continued to lag last year’s revenue. Operating costs were appreciably reduced in the second quarter and stayed at this reduced level in the third quarter. On the other hand, a restructuring provision was made that negatively affected net profit.
Food & Industrial Systems
Revenue at Food & Industrial Systems in the third quarter was slightly higher compared to the first quarter of this year, but significantly lower than last year for the year as a whole. Despite the restructuring provision at Rollepaal and thanks to the NOW subsidy, the operating companies collectively posted a positive net profit in the third quarter. Up to and including the third quarter, the order intake at Food & Industrial Systems was at a respectable level, but unequally distributed across companies.
Plastic Components
Plastic Components’ revenue in the third quarter was comparable to last year and as such rose significantly in comparison to the second quarter. Despite the higher gross margin and lower operating costs, the net profit over the first three quarters was significantly lower than in 2019. Various markets appeared to be recovering, but the automotive and the food & beverage market in the out-of-home segment in particular, are not expected to return to their former levels for the time being.
Inventiveness and flexibility
CEO Bart Aangenendt about Hydratec Industries’ third quarter:
“We are happy with the positive result we achieved in the third quarter of this year. The consequences of the COVID-19 pandemic are extremely drastic for everyone. The situation demands a constant high level of inventiveness and flexibility on the part of our employees, customers and partners. Although Hydratec Industries has achieved a positive net profit, there are concerns about willingness to invest in our markets. Due to the many uncertainties it is not possible to make any specific statements about all of 2020.”
Hydratec Industries is a listed, globally operating specialist in industrial systems and components and has two core activities: Food & Industrial Systems and Plastic Components. These activities are accommodated in five operating companies.