Hydratec is a globally-active specialist in industrial systems and components, with a focus on the Agri & Food, Automotive and Health Tech markets. Hydratec has two core activities: Agri & Food Systems and Plastic Components. A growing world population and increasing welfare means the Hydratec companies are well positioned. They focus primarily on the following markets:
- Agri & Food
- Health Tech
Sustainability has become a major prerequisite for growth in all these markets. This not only means achieving more with less raw materials, but also that environmental-impact and society’s acceptance of issues will play an increasingly important role in everything we and our clients do.
The strategy is aimed at the achievement of consistent, long-term revenue and result growth that at a minimum conforms with the market by every Group company. We strive, therefore, for leading positions in the various markets that make achieving high added-value for the end users possible. The smart application of new technologies will enable us to make a difference for our clients and broaden our offering to existing purchasers. Because the price of our products and services will remain a powerful competitive weapon for healthy growth, considerable energy is being put into various Operational Excellence programmes.
The strategic market positions and options of each company are evaluated annually, partly in the light of the achieved results. These evaluations form the basis for decisions regarding long-term investments and priorities in respect of product-market developments. This must offer our shareholders the prospect of a consistent and good return. We strive for the expansion of our existing activities and the possible broadening of our industrial activities through acquisitions and collaborations. All the current activities provide a basis for a so-called ‘buy and build’ acquisition strategy.
Enterprising management and employees
It is very important that every one of the companies has good and motivated management and employees. The management teams must be capable of identifying structural market opportunities, developing innovative products and steering their own organisations in a practical and stimulating manner. This includes the continuous promotion of the employees’ personal development on the basis of ambitious, but realistic, targets derived from scenarios that form a guideline for everyone involved.
Because manoeuvrability and entrepreneurship take centre stage within the different Group companies there is no basis for central staff departments. This enables overhead costs to be limited to the minimum.
Sufficient continuous investment can only take place, and a buffer against setback can only be built-up, if the companies within Hydratec achieve healthy profitability. In concrete terms this means that the target for every company is an operating profit of at least 8% to 10% of revenue. This target may, however, be temporarily unachievable primarily as a result of economic conditions or organisational adjustments that are deemed necessary.
Together with the envisioned growth and a solvency of at least 35%, Hydratec strives for a dividend distribution of at least 40% of the profit after taxes (excluding any one-time income).