Thursday 21 July 2022, 17:30
Hydratec Industries continues its forecast of a good 2022
AMERSFOORT – Hydratec Industries' revenue of €124 million exceeded that in the first half of 2021. Due to the rise in raw material prices, the gross margin was down by 1.6%. This led to a lower operating result than last year’s. The order intake was strong, both for the Plastic Components segment and Industrial Systems. This presents a good outlook, despite the uncertainties in the current markets.
Key figures for first six months of 2022
Consolidated revenue totalled €124 million (+3.5% compared to 2021).
The gross margin was down from 54.3% in 2021 to 52.7% in 2022.
The operating result (EBIT) is €7.1 million compared to €9.6 million in 2021.
Net result attributable to shareholders came to €4.8 million (2021: €6.6 million).
Investments in tangible and intangible fixed assets amounted to €3.2 million. In the first half of 2021 this was €2.9 million.
Bart Aangenendt, CEO of Hydratec: “The order intake is strong in the various markets. However, the supply chain has not yet settled down, and the tight labour market also presents a growing challenge. That is why our sales were lower than planned in the first six months, and the costs were higher as well. Despite that, demand for food, health and mobility remains as strong as ever. Even with the major uncertainties, based on our current order book and intake, we expect a good second half of 2022.”
In the first half of 2022, the world faced increasing turmoil caused by the Covid-19 pandemic and the war in Ukraine. This caused problems in the supply chain and in the labour market. Despite that, Hydratec Industries managed to maintain revenue at a high level.
The various markets in which we operate have shown resilience, to the benefit of Hydratec Industries. Various measures have been taken to compensate for the price increases. The benefits were limited in the first half of 2022 because the increased costs could not always be passed on in current projects.
The loss of production at Polmer in Poland led to more or less the same revenue at Plastic Components compared to the same period last year. Revenue totalled €65.5 million compared to €66.6 million in 2021. Thanks to an active pricing policy and a better product mix, the gross margin as a percentage of revenue remained about the same despite higher raw material prices. The operating result was €4.9 million, 7.5% of revenue. This is 0.5% higher than in the first half of 2021. The various markets recovered well, even though there were sharp increases in the price of raw materials and energy. The limited availability of qualified staff also depressed revenue and led to higher costs.
Industrial Systems recorded revenue of €59.2 million, 9% higher than last year. The gross margin as a percentage of revenue decreased because it was not always possible to pass on the higher material prices in current projects. The disruption in the supply chain led to additional costs. Industrial Systems will continue to invest in product development and ICT. This all resulted in a considerable increase in the operating result from €6.2 million to €4.1 million (6.9% of revenue). The project-based nature of the activities can lead to significant fluctuations in revenue and results. Despite global uncertainty, the order intake remained at a satisfactory level.
Expectations for the 2022 financial year
Based on the first half-year results and the healthy backlog, Hydratec Industries anticipates a result similar to 2021 for the whole of 2022. However, the war in Ukraine in particular and the impact of the Covid-19 pandemic are creating considerable uncertainties in the various sales markets, the supply chain, the labour market, and in macroeconomic conditions. This could affect the availability and price of labour, materials and energy, which may then negatively affect revenue and margins.
2022 HALF-YEAR REPORT
The half-year report is available on the website:Half year report
The figures contained in the half-year report have not been audited.
Hydratec Industries is listed on the Euronext Amsterdam NV stock exchange (ISIN NL0009391242, ticker: HYDRA.)