AMERSFOORT – Hydratec Industries’ revenue for the third quarter of 2020 was substantially higher than for the second quarter of the year during which COVID-19 had a significant effect on both revenue and results. Thanks to this increase the net result over the first three quarters of 2020 achieved by Hydratec Industries for its shareholders is positive. Despite the recovery CEO Bart Aangenendt believes it is still too early to make a firm statement regarding the whole of the 2020 financial year.
The revenue achieved in the third quarter was at the same level as in the first quarter of the year. Viewed over the whole year, revenue is still lagging behind last year. Operating costs in the second quarter were clearly lower and remained at this lower level during the third quarter. A provision was made for a reorganisation, which had a negative effect on the net profit.
Food & Industrial Systems
Although Food & Industrial Systems’ revenue for the third quarter was slightly higher than for the first quarter of this year, revenue over the whole year thus far is substantially lower than in 2019. Despite the reorganisation provision at Rollepaal, and thanks to the utilisation of NOW (Temporary Emergency Measure Bridging for Employment), the combined net profit achieved by the operating companies in the third quarter was positive. Order intake level over the three quarters was good for Food & Industrial Systems as a whole, but was not evenly divided over the individual operating companies.
Plastic Components’ revenue for the third quarter was comparable to its revenue in the same period in 2019 and considerably higher than for the second quarter of this year. Despite the higher gross margin and lower operating costs, net profit over the first three quarters was significantly lower than in 2019. Although several markets appear to be making a recovery, the automotive market and the ‘Out of Home’ segment of the food & beverage market are not expected to return to their ‘old’ level for the time being.
Inventiveness and flexibility
CEO Bart Aangenendt regarding the third quarter of Hydratec Industries:
“We are pleased with the positive result during the third quarter of this year. The effects of COVID-19 have been far-reaching for everyone. The situation continues to demand considerable inventiveness and flexibility of our employees, clients and partners. Although Hydratec Industries has achieved a positive net profit, there are still concerns regarding the willingness to invest in our markets. Due to the many uncertainties we are unable to make a concrete statement regarding the year as a whole.”