Thursday 20 July 2023, 17:30
Hydratec Industries grows by 8%
AMERSFOORT – Hydratec Industries’ revenue of €133.7 million in the first half-year was 7.8% higher than that in the first half of 2022. The margin also increased by the same percentage. Operating costs were higher, mainly due to a non-recurring restructuring provision of €4.3 million. Adjusted for this, the operating result rose sharply to €10.6 million, compared with €7.1 million in the first half of the previous year. The order book is well filled, despite the uncertainties in the current markets.
Key figures for first six months of 2023
- Consolidated revenue totalled €133.7 million (+7.8% compared to 2022).
- The gross margin increased (€70.5 million versus €65.3 million in 2022).
- The operating result (EBIT), adjusted for restructuring costs, was €10.6 million (7.9%) compared to €7.1 million (5.7%) in 2022.
- The operating result (EBIT), including restructuring costs, was €6.3 million.
- The net result attributable to shareholders (after restructuring costs) came to €4.2 million (2022: €4.8 million).
- Investments in tangible and intangible fixed assets amounted to €4.9 million. In the first half of 2022, this was €3.2 million.
- As at 30 June 2023, the solvency ratio had fallen to 35.0% compared to 35.8% as at 31 December 2022.
Bart Aangenendt, CEO of Hydratec: “Revenue increased significantly at Industrial Systems in particular. At Hightech Components, we have made some important decisions to increase both capacity and efficiency. The supply chain seems to be slowly stabilising again, reducing inventories among our customers. Meanwhile, interest rates and inflation have risen. This led to uncertainty, which had a dampening effect on order intake. Despite that, demand for food, health and mobility remains as strong as ever and we have a well-filled order book.”
Revenue at Industrial Systems rose to €69.3 million, 17% higher than last year. Revenue in North and South America showed a sharp increase. The gross margin as a percentage increased marginally compared to the first half of 2022. There were fewer supply chain disruptions compared to the second half of last year. It also proved possible to pass on increased costs in new projects. As a result, the margin as a percentage was significantly higher compared to the second half of 2022. Operating costs were higher than last year due to increased salary costs. This led to an operating result of €7.4 million (10.7% of revenue) compared to €4.1 million (6.9%) last year. The project-based nature of the activities can lead to significant fluctuations in revenue and results. Increased interest rates and inflation appear to have worsened the investment climate. The order book remained at a good level, while order intake was dampened to some extent because of investment decisions taking longer.
Revenue at Hightech Components remained virtually unchanged compared to the same period last year. Following the Covid-19 crisis and subsequent supply chain disruptions, accumulated inventory levels among our customers are being reduced again. This led to a fall in revenue that was offset by strong growth in revenue in the Health market. Revenue totalled €64.7 million compared to €65.5 million in 2022. Thanks to an active pricing policy and a better product mix, the gross margin as a percentage of revenue increased modestly. To enhance efficiency, we decided to phase out our operations in Hellevoetsluis and move most of them to other sites. A social plan has since been agreed with the unions. A restructuring provision of €4.3 million has been formed. Operating costs increased, mainly due to higher salary costs. This put the operating result at €0.1 million. Not including the restructuring costs, the operating result was €4.4 million (6.8% of revenue) compared to €4.9 million (7.5%) last year. The 20% capacity expansion at Timmerije is on schedule. This expansion enables us to develop several new products and serve new customers from our Neede site.
Expectations for 2023
Hydratec Industries got the year off to a good start and has a well-filled order book. In view of macroeconomic developments such as volatile exchange rates, trade restrictions, supply chain uncertainties and rising inflation and interest rates, we are unable to make any concrete pronouncements about 2023
2023 HALF-YEAR REPORT
The half-year report is available on the website. The figures in the half-year report have not been audited.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.)