Key figures 2022 2021 Growth
Revenue €283m €257m 10%
Operating result €21.8m €22.0m -1%
Net result €15.8m €15.1m 5%
ROI 19.1% 15.1% 26%
Earnings per share €12.31 €11.70 5%
Solvency ratio 35.8% 35.7% -

Industrial Systems

Revenue at Industrial Systems went up 19% in 2022 to €157 million. All markets within Industrial Systems contributed to the increased revenue, with a considerable increase in the poultry market share in particular. There was also a marked rise in the gross margin. However, the margin as a percentage of revenue fell because the price increases of raw materials and sea freight could not be passed on directly in the ongoing projects. Operating costs increased. Industrial Systems' operating result was €17.2 million, which is comparable to 2021 (€17.5 million).

Hightech Components

At €127 million, Hightech Components' revenue remained at the same level as in 2021. Revenue in the mobility market stabilised, while it increased in the health and food markets. Furthermore, production in Poland was phased out. Despite higher raw material prices, a better product mix led to a rise in the gross margin. Operating costs remained at the same level as in 2021. Hightech Components' operating result was markedly higher at €7.8 million compared to €7.0 million last year.

Bart Aangenendt (CEO) on last year:

"Looking back, we see that thanks to the commitment of our employees and the trust of shareholders and customers, Hydratec has enjoyed solid, consistent development over the past 25 years. It gives us reason to be proud of what we have achieved while offering confidence in the future."

A turbulent year

Our society is going through a turbulent period. In January last year, we left the last Covid-19 lockdown behind us and started out with renewed enthusiasm and ambition. But Russia unexpectedly invaded Ukraine in February, which plunged Europe into an international energy crisis, resulting in soaring gas and electricity prices. Supply chain issues arose again, which we had expected to be largely resolved. Inflation soared during the year to its highest point in decades. Wage costs rose, and fears of a recession grew.

All these developments directly or indirectly affected our performance. Our revenue in Russia and Ukraine understandably collapsed, but our order books were well filled, which enabled us to compensate for this minor loss in other regions. However, orders were distributed differently across our markets compared to previous years. For instance, mobility got off to a promising start in 2022, but the market suffered a global chip shortage later in the year. The food market grew significantly due to the importance of chicken as a foodstuff and the need for the availability of water. The future still looks promising for health, although we have noticed that the speed of developments is determined by technical challenges to a significant extent. We are in a promising position to find solutions to those challenges in partnership with our customers.

All in all, our revenue increased over the whole year, once again resulting in record revenue. Given the circumstances, that is a good result.

Current societal and economic challenges also present opportunities: higher energy prices and 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.

2022 Annual Report

Hydratec Industries will publish its 2022 Annual Report after the close of trading on Thursday 16 March 2023. The audit has not yet been fully completed.

Meeting of Shareholders

This year's general meeting of shareholders will be held on Wednesday 17 May 2023 in Amersfoort.

Proposed dividend

Earnings per share in 2022 amounted to €12.31 (2021: €11.70). The proposal to the General Meeting of Shareholders is to set the dividend for the 2022 financial year at €6.00 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. The dividend will be paid out in cash. The net result after the dividend for 2022 will be added to the other reserves.

Expectations for the 2023 financial year

Hydratec got off to a good start in 2023. The market position of the companies, each in its own niche, is as strong as ever. As a result, we expect to pass on any continuing inflation, perhaps with a delay. Factors such as the situation in Ukraine continue to cause uncertainty. We do not expect any changes in our personnel, investment and financing policies in 2023. However, we will continue to critically examine activities that do not contribute enough. For instance, we plan to close the Hellevoetsluis site and relocate profitable operations to other locations.

The order book is well-filled. In view of macroeconomic developments such as volatile exchange rates, trade restrictions, supply chain uncertainties and rising inflation, we do not consider it possible to make any concrete pronouncements about 2023.

Bart Aangenendt

CEO

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

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Hydratec Industries NV published this content on 02 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2023 16:51:06 UTC.