Friday 22 March 2019, 08:00
Significant increase in revenue produces 19% improvement in Hydratec’s net profit
Hydratec’s revenue increased by €39 million to €208 million in 2018. Revenue at Agri & Food Systems in particular grew significantly by 45%, of which 30% was autonomous. Plastic Components experienced 8.8% growth, 4.7% of which was autonomous.
The operating profit, excluding non-recurring items was €12.4 million (+49%). Including these items, Hydratec closed the year with an operating profit of €8.9 million (2017: €8.3 million). The net profit was affected by tax income as a result of which the net profit attributable to shareholders was €8.5 million (2017: €7.1 million). The profit per share amounted to €6.63.
Bart Aangenendt (CEO) on the past year:
“It was once again a good year for Hydratec. Autonomous revenue increased by 15%. All companies contributed to this growth in revenue. We strengthened our market position through three small acquisitions. In total, this resulted in a growth of 23%.”
Key figures 2018 vs. 2017
| 2018 | 2017 | |
| (millions of euros) | ||
| Net revenue | 208.4 | 169.3 |
| Gross margin | 105.8 | 89.5 |
| Operating profit | 8.9 | 8.3 |
| Net profit attributable to shareholders | 8.5 | 7.1 |
| Net profit per share (euros) | 6.63 | 5.60 |
| Dividend per share (euros, 2018 proposed) | 2.70 | 2.25 |
| Solvency ratio | 35.3% | 38.6% |
2018 Annual Report
The 2018 Annual Report will be published on Thursday 4 April 2019.
Proposed Dividend
In the Annual Meeting of Shareholders of 29 May 2019, a proposal will be presented to pay out a dividend of €2.70 per share in accordance with the policy that calls for at least 40% of the net profit (excluding non-recurring income) to be paid to shareholders annually. This represents an increase of 20% in comparison to last year (€2.25).
Outlook for 2019
Agri & Food’s order intake in 2018 was encouraging and the order book is therefore well-filled. For Plastic Components it appears that the increase in revenue within Food and Health will continue, while developments within the Automotive market are more uncertain. As always, macroeconomic developments, such as volatile exchange rates and trade barriers, have an impact on the demand for our products. In part for these reasons, we consider it premature to make any statements at this point in time about the potential 2019 result.