Nicolás Correa S A : Grupo Nicolás Correa achieves a profit of 7 million euros, 8% more than in 2020, and increases the dividend by 18%

The Burgos-based Group surpasses pre-pandemic turnover levels, with a consolidated turnover in 2021 of 76.5 million euros

• The order backlog for the Grupo Nicolás Correa as a whole in 2021 has reached 82.6 million euros, 193% more than in 2020
• The company managed to maintain its operating margins stable despite the generalised economic situation of rising supply, raw material and transport costs, achieving an EBITDA to revenue ratio of 12%
• Order intake reached 134 million euros, the Group´s best commercial performance in the last decade

Grupo Nicolás Correa registered ordinary revenues of 76.5 million euros in the financial year 2021. This turnover figure marks an important milestone for the Burgos-based Group, as it represents 15% growth compared to 2020 (66.5 million euros) and 3.5% more than in 2019 (74 million euros), thus recovering pre-pandemic turnover levels.

Despite the generalised and constant increase in the cost of supplies, raw materials and transport, the Correa Group has managed to maintain its profitability levels during the year. In this regard, the Group´s EBITDA increased by 11% to 9 million euros. Likewise, the EBITDA to revenue ratio remained at 12%, which is above the average profitability of the machine tool sector.

The same growth line can be observed in the company´s consolidated profit before tax (PBT), which was 7 million euros, 8% more than in 2020 (6.5 million euros). This shows a profitability of 9.2% on revenue, a figure which places the Correa Group in a benchmark position in the sector of large milling machine manufacturers.

"The strict strategy of cost control and efficiency, the commitment of our employees and the trust of our customers and the market in general have allowed Grupo Nicolás Correa to have one of the best years in its history. The increase in demand due to the resumption of investment in countries where we have a significant presence has enabled us to reach the levels we expected at the end of 2020", highlights Carmen Pinto, CEO of Grupo Nicolás Correa.

Grupo Correa´s financial strength has enabled the company to meet its commitment to remunerate shareholders in 2021. The proposal of the Board of Directors, pending approval by the General Shareholders´ Meeting, for shareholders remuneration in 2022 is a dividend payment of 0.20 euros per share, which represents an increase of almost 18% compared to the previous two years.

The order intake figure, including intra-group orders, reached 134 million euros, doubles the figure achieved in 2020 (64.8 million euros) and represents the Group´s best commercial performance in the last decade. This order intake has led to a year-end order backlog of 82.6 million euros, 193% more than the previous year, which closed the year with a backlog of 28.2 million euros. This backlog figure means that the Correa Group will start 2022 with its production practically committed.

These results represent a success for the company, which has managed to increase its activity and profitability despite an environment of generalised and global increase in operating costs, thanks to a strict strategy focused on profitability and a policy based on cost management and control in all production processes. This has enabled us to meet the forecasts established for 2021. All this is strengthened by the company´s significant export activity, which represents 94% of its turnover.

Geographically, China maintained the growth levels with which it began its post-pandemic recovery in 2020, and consolidated its position as one of the Group´s main markets. Having a consolidated structure in the country itself has been key, as it continues to have significant mobility restrictions due to the pandemic. Nicolás Correa has strengthened its position in the Asian region, becoming a leading supplier of imported milling machines, especially large machines for the aeronautical and wind energy sectors, despite competition from Chinese and European manufacturers.

Europe also plays a leading role in the activity of the Group. Its operations in Italy, a country which for the first time has taken the lead in order intake in the milling sub-sector at AFM, the Spanish Association of Machine Tool Manufacturers, have increased considerably, taking advantage of the boost given by its government to investment in production capacity and industrial competitiveness. Another country worth highlighting is Germany, one of the markets where the crisis caused by COVID-19 in the sector was felt most acutely, but where the offers experienced throughout 2021 have materialised in orders during the second half of the year thanks to a greater presence and representativeness of the company´s commercial subsidiary, GNC Deutschland.

In the Spanish market, although the Renove Plan has allowed an increase in investment in the industrial fabric, the levels of order intake are far from their real potential and it is necessary to increase their competitiveness.

"During 2021 we focused all our efforts to continue offering a comprehensive service to our customers that goes beyond sales. Grupo Nicolás Correa is much more than a supplier, it is a technological partner that accompanies and adds value to ensure the constant innovation and reliability that has defined us during our 75 years of history", concludes the CEO of Grupo Nicolás Correa, Carmen Pinto.