Key figures	2021	2020	Growth
Revenue:	€257 M	€218 M	+18%
Operating result:	€22.0 M	€ 3.3 M	+560%
Return on equity:	21.7%	2.1%	+19.6%
Earnings per share:	€11.70	€1.01	+1058%
Solvency ratio:	35.7 %	31.8%	+3.9%

Industrial Systems

Revenue at Industrial Systems went up 28% in 2021 to €132 million. This can be attributed to factors such as a sharp increase in revenue in the pet food market. The gross margin also increased strongly. The relative margin as a percentage of revenue fell modestly because the price increases of raw materials and transport could not be passed on directly in the ongoing projects. Operating costs decreased, causing a sharp rise in the operating result of Industrial Systems to €17.5 million.

Plastic Components

At €127 million, revenue at Plastic Components rose by 10% compared to 2020. The mobility market, in particular, made a strong recovery compared to 2020.  Despite higher raw material and energy prices both the gross margin and the margin as a percentage of revenue rose in response to an improved product mix. The operating result of Plastic Components was therefore sharply higher at €7.0 million. 

Bart Aangenendt (CEO) on last year:

“We had already seen an upward trend at the beginning of 2021, but because of the ongoing Covid-19 pandemic, it remained unclear how the markets would develop and what the effect would be on the willingness to invest of our customers in the various markets. Our employees have shown themselves to be very flexible and agile amidst all these dynamics. The favourable revenue developments led to growing confidence that it would be a good year, despite Covid-19. We have made good use of the resilience of the markets in which we operate. The demand for modernisation, automation and capacity expansion of production processes was clearly apparent in 2021. Some of these investments were in response to catch-up demand, but Covid-19 developments have led to a sustained upturn in some markets, such as Health. Only in the Mobility market was there a fall in revenue due to a lack of microelectronics.

 "Our employees have shown themselves to be flexible and agile amidst all the market dynamics"

 At the same time, we put various measures in place to improve the result. For example, successful savings operations have been carried out, and astute choices have been made.

Despite these positive developments, we continue to face external challenges. The situation in Ukraine recently caused uncertainty. The sudden drop in demand in 2020, followed by a rapid recovery also led to unrest in the supply chain. Delivery times of materials and raw materials rose significantly and became less reliable. Prices rose, transport costs increased, and margins came under pressure. The supply problems led to a slowdown in revenue, particularly in the year’s second half. That, too, made pressing demands on our flexibility and ability to anticipate. Another reality is the labour market shortage, both nationally and internationally. It is taking more effort to recruit, keep and retain employees. This has been the case for a long time for technical staff, but we are now also seeing shortages in other job categories. Despite that, we are still managing to recruit and retain good employees. We are convinced that our organisational set-up, with independent operating companies that work close to the market, shows employees they have a direct, valuable impact on the result. This has shown itself to be a good structure in the current dynamics. These challenges also offer opportunities: the increasing shortages of materials and labour lead to a growing need for raw material savings and automation. Our focus on innovations to reduce waste encourages customers to choose our solutions.”

2021 Annual Report

Hydratec Industries will publish its 2021 Annual Report on Friday 18 March 2022. The audit has not yet been fully completed.

Proposed dividend

Earnings per share in 2021 amounted to €11.70 (2020: €1.01). The proposal to the General Meeting of Shareholders is to set the dividend for the 2021 financial year at €6.75 per share. This dividend payment is in line with the policy of paying out at least 40% of the result after tax, excluding non-recurring income. An interim dividend of €2.10 for 2021

was paid in August 2021. The remainder of €4.65 will also be paid out in cash. The net result after the dividend for 2021 will be added to the other reserves.

Expectations for the 2022 financial year

Hydratec got off to a good start in 2022. The companies’ market position remains strong, each in its own niche. As a result, we expect to be able to pass on price increases, perhaps with a delay. We do not expect any changes in our personnel, investment and financing policies in 2022. The order book is well-filled, but the Ukraine crisis could have a modest impact on revenue. In view of these macroeconomic developments, but also volatile exchange rates, trade restrictions, supply chain uncertainties, rising inflation and exceptional circumstances due to Covid-19, we do not consider it possible to make more concrete pronouncements about the 2022 expectations at this time. 

Bart Aangenendt

CEO

 

Hydratec Industries is listed on the Euronext Amsterdam NV stock exchange (ISIN NL0009391242, ticker: HYDRA.)