Friday 29 October 2021, 08:00
Hydratec Industries on its way to a good 2021
AMERSFOORT – Hydratec Industries achieved record revenue in the third quarter, with the result that revenue over the first 3 quarters of 2021 is strongly higher compared to last year and also significantly higher than in the period prior to the Covid-19 pandemic, in 2019. The increased revenue resulted in a considerable rise in Hydratec Industries’ profitability in the third quarter compared to the first half of the year.
Increased revenue was most noticeable in the Food market activities within Industrial Systems. The Mobility market saw a decrease in revenue. Margins are under limited pressure given that increases in the costs of materials and equipment can only be passed on in the sales prices with some delay. Operating costs remained stable in the third quarter.
Bart Aangenendt, CEO of Hydratec: “Hydratec Industries is heading for a good year, despite the uncertainties in the supply chains, which have been severely disrupted by the pandemic. This has resulted in shortages, price increases and a drop in demand, a situation we expect to continue well into 2022. As a result of both the shortage of raw materials and shortages on the labour market there is an increasing need for process automation and solutions from our operating companies that save on raw materials.
Thanks to higher revenue and an increase in the gross margin, the net result for the first three quarters was sharply higher than in 2020. However, the revenue level of Plastic Components in the third quarter is marked lower than in the previous quarters. In view of the results at Polmer, it was decided to phase out the injection moulding activities in Poland. Furthermore, we saw a decline in the Mobility market as a result of problems with the supply of computer chips to the automotive industry. This problem is now also occurring in other markets in which Hydratec operates. Several markets appear to be recovering, but the automotive segment in particular is not expected to return to its previous level for the time being.
Revenue at Industrial Systems was considerable higher in the third quarter than in the previous two quarters. Given that projects are generally taken on with prices set in advance, increases in the costs of materials and equipment can currently only be passed on in sales prices with some delay. This has put the margins under pressure. As a result of the higher revenue, the net result rose sharply compared to the first half of the year. Order intake at Industrial Systems is at a good level up to and including the third quarter.
A cash interim dividend worth €2.7 million was distributed to shareholders in August 2021, which works out at €2.10 per share. This is in line with the dividend policy to distribute at least 40% of revenue.
Expectations for the 2021 financial year
On the basis of the present good results and the well-filled order book at Industrial Systems, we expect good results for the entire 2021 financial year.
The figures contained in this press release have not been audited.
Hydratec Industries is listed on the Euronext Amsterdam NV stock exchange (ISIN NL0009391242, ticker: HYDRA.)