Agro Napló • 2023. március 3. 14:59
Michel Denis, President & CEO, stated: The year 2022 was marked by strong revenue growth in a context of very dynamic markets and a very deep order book.
The tensions on the supply chain and the inflation were very strong. The commitment of the teams enabled us to overcome the supply chain difficulties and to significantly accelerate production. Inflation was immediately reflected in sales prices, but with a time lag effect due to the depth of the order book. This situation caused a significant cyclical squeeze on margins. Recurring operating income amounted to €84.6 million, or 3.6% of revenues.
In this difficult context, the group has made progress on its roadmap. The year 2022 was marked by our commitment to a low-carbon trajectory validated in June by the SBTi and supported by the launch of our first electric telehandlers, by the acquisition of a company producing batteries, and by the presentation of our hydrogen strategy and our first hydrogen prototype.
In services, we intensified our digitalization efforts, acquired two companies in Finland and Italy, and strengthened the capacities of our parts distribution platforms.
In terms of products, we have renewed our core construction range developed on a new shared platform, accelerated innovation, inaugurated our new aerial work platforms plant in France and launched a massive plan to expand the industrial capacities of our two American production sites.
Finally, we continued to hire and develop our teams, strengthening their skills and diversity.
The demand from our markets and the depth of our order book lead us to anticipate revenue growth of around 20% in 2023, despite constant pressure on our supply chain and an increase in the recurring operating income as a percentage of sales of around 100 basis points, thanks to an improvement in the second half.”
|
Product division |
S&S division |
Total |
Product division |
S&S division |
Total |
||
|
in millions of € |
2021 |
2021 |
2021 |
2022 |
2022 |
2022 |
Var. |
|
Net sales |
1,534.8 |
339.8 |
1,874.6 |
1,971.8 |
389.9 |
2,361.6 |
+26% |
|
Sales margin |
223.9 |
92.5 |
316.3 |
204.1 |
108.2 |
312.3 |
-1% |
|
Sales margin as a % of sales |
14.6% |
27.2% |
16.9% |
10.4% |
27.8% |
13.2% |
|
|
Recurring operating Income |
91.3 |
32.5 |
123.7 |
43.7 |
41.0 |
84.6 |
-32% |
|
Recurring op. income as a % of sales |
5.9% |
9.6% |
6.6% |
2.2% |
10.5% |
3.6% |
|
|
Operating income |
87.2 |
32.0 |
119.2 |
41.5 |
40.8 |
82.3 |
-31% |
|
Net income attributable to the group |
86.8 |
54.7 |
-37% |
||||
|
Net debt excluding IFRS 16 |
-18.5 |
213.4 |
|||||
|
Net debt including IFRS 16 |
3.0 |
234.4 |
|||||
|
Shareholder's equity |
751.3 |
791.6 |
+5% |
||||
|
% Gearing excluding IFRS 16 |
-2% |
27% |
|||||
|
% Gearing including IFRS 16 |
0% |
30% |
|||||
|
Working capital requirement |
473 |
700 |
+48% |
Audit procedures performed by the auditors.
Business review by division
The Product division reported revenue of €1,972 million in 2022, up 28% compared to 2021 (+25% at constant exchange rates and scope). Growth was disrupted by supply chain tensions and, at the beginning of the year, by the health crisis. Operations focused on accelerating production rates, supply chain management, R&D investments and capacity expansions in progress in France and the United States. The sales margin of the division came to €204.1 million, down 9% on the year-earlier period. The sales margin as a percentage of sales deteriorated by 4.2 points, impacted by inflation in raw materials and energy. Given the depth of the order book, the major sales price increases announced had a partial effect in 2022, and the very high invoicing in Q4 concerned old low-margin orders. The R&D costs increased by €7.6 million with the continuation of innovation programs in order to achieve the objectives of the Group's carbon trajectory. The structural costs also rose by 18% (+€19.7 million) to support projects and were impacted by inflation. Thus, the recurring operating income of the Product division is down by €47.6 million (-52%) to €43.7 million (2.2% of revenues) compared with €91.3 million in 2021 (5.9% of revenues).
In order to limit overly high expectations of orders for 2024, these are now being opened gradually with dealers.
The Services & Solutions (S&S) division recorded revenue growth of 15% for the year (+11% at constant exchange rates and scope). The division benefited from very strong market demand, with tensions over availability and prices in the distribution of spare parts. It is also increasing the capacity of its logistics platforms and continuing to strengthen its service offerings. Business grew in all geographic regions, particularly in the Americas and Northern Europe, as well as in all of its activities, in particular in the used machines. The sales margin was up by €15.7 million (+17%) to €108.2 million compared with 2021. This increase is explained by the growth in activity and a 0.5 point improvement in the sales margin as a percentage of sales. The pricing policy enabled the division to limit the impact of inflation. The administrative, selling, marketing and service expenses were contained in an inflationary environment, with an increase of 10.9% (+€6.6 m). As a result, the division's profitability came to €41.0 million (10.5% of revenues), up by €8.5 million compared with FY 2021 (€32.5 million, or 9.6% 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 15, 2023, the payment of a dividend of €0.63 per share.
Glossary (1) like for like, at constant scope and exchange rate:- scope: for the company Lifttek acquired in May 2022, restatement from the date of its acquisition to December 31, 2022. No company exited the scope in 2022. There is no acquisition nor exit in 2021.
- application of the exchange rate of the previous year on the aggregates of the current year
(2) EBITDA: Earnings before interest, taxes, depreciation, and amortization, restated from IFRS 16 impact
(3) Net debt, gearing and leverage: excluding lease commitments IFRS 16 Order book The order book corresponds to machine orders received and not yet delivered, for which the group:
- has not yet provided the promised machines to the customer;
- has not yet received consideration and has not yet been entitled to consideration.
These orders are delivered within less than one year (excluding exceptional periods as experienced by the Group since 2021) and may be canceled.
The order book may vary due to changes in consolidation scope, adjustments, and foreign currency translation effects.
In order to limit the effects of inflation, the group has integrated in H1 2022 mechanisms for adjusting its sales prices at the time of delivery. These mechanisms will influence the valuation of the orderbook on equipment, which is booked and valued at the price on the day the order is placed.
The Group has also introduced a new policy of gradually opening the order intake horizons of H2 2024 for dealers in order to limit the effects of anticipation without an end market customer.