Michel Denis, President and Chief Executive Officer stated: “The year 2021 has been marked by a fantastic commercial dynamic, with an unprecedented order intake and a record order book of 3 billion euros at the end of 2021. Our revenues grew by 18% compared to 2020 in an operating context disrupted by health crises, component shortages and inflationary pressures. Recurring operating income amounted to 6.6% of revenues. The Group's financial solidity was strengthened during the year, which led the Board of Directors today to propose the payment of a dividend of 0.80 euro per share at the next General Shareholders' Meeting.
The acceleration of inflation at the end of last year has created a squeeze on margins which we expect to continue in the first half of 2022, before being gradually corrected in the second half. Furthermore, in the absence of new major disruptions in the global economy, inflation dynamics, and based on the assessment to date of the effects of the war in Ukraine, the group expects its revenues to grow by more than 20% compared to 2021 and to sustain its operating income rate to revenue.
*On a like-for-like basis at constant scope of consolidation and exchange rates: terms defined in the appendix
*EBITDA: Earnings before interest, taxes, depreciation, and amortization, restated from IFRS 16 impacts
*Net debt and Gearing excluding lease commitments IFRS 16
Business review by division
The Product division (combining the former MHA and CEP divisions) reported revenue of €1,534.8 million in 2021, up 19.4% compared with a 2020 base that had been deeply impacted by the Covid-19 crisis. The division benefited from the rebound seen at the end of 2020. Its revenues have increased in all geographic areas and in all its markets. In 2021, the acceleration of production speeds and supply chain management took place in a disrupted context by component shortages. The margin on cost of sales was 223.9 million, up 40.1% compared with financial year 2020. It benefited from the upturn in business and the 2.2 points improvement in the margin rate, which had been affected in 2020 by production shutdowns and the implementation of sanitary measures. In 2021, the margin is benefiting from the increase in prices and the control of fixed costs. However, material price inflation, which increased in the second half of the year, had an unfavorable impact. R&D and other indirect costs increased to support innovation and growth. Thus, the recurring operating income rose by 44.4 million euros (+94.7%) to 91.3 million euros (5.9% of revenues) compared with 46.9 million euros in 2020 (3.6% of revenues).
The Services & Solutions (S&S) division recorded revenue growth of 13.2% for the year (+13.3% at constant exchange rates). Business grew in all geographical areas and in all its markets, except for services activities, which were more resilient in 2020. This rebound resulted in an increase in the margin on cost of sales of 3.5 million euro compared to 2020, to 92.5 million euro. The impact of the increase in activity was, however, limited by the 2.4 points decline in the margin on cost of sales. This deterioration was due to higher material and direct costs. Administrative, sales, marketing and service expenses were up 18.1% (+€9.2 m), given the rebound in activity. As a result, the division's profitability was €32.5 million (9.6% of revenues), down €6.0 million compared to 2020 (€38.4 million, or 12.8% of revenues).
Dividend proposed at the next Shareholders' Meeting
The Board of Directors has decided to propose to the Annual General Shareholders' Meeting to be held on June 16, 2022, the payment of a dividend of €0.80 per share.
