The turnover of the second half of 2021 of the Belgian industrial group Picanol increases by 32%
After the heavy impact of the COVID-19 pandemic in the first half of 2020, the recovery – which started in the second half of 2020 – continued throughout 2021. Both the Weaving Machines activities (Picanol) and the other activities industrial companies (Proferro, PsiControl) recorded a strong increase in turnover.
Adjusted EBITDA increased 62% over last year as fixed costs did not increase in proportion to sales. However, in the second half of the year, profitability was under severe pressure as the negative impact of higher component prices could not be fully translated into higher selling prices, partly due to the significant backlog, the company said in a press release.
Picanol Group, a diversified Belgian industrial group, announced a 32% increase in turnover to a total of EUR 1,354.3 million in the second half (H2) of FY21, by compared to the same period last year. Machinery & Technology revenue increased 30% as the global machinery market continued its strong recovery from COVID-19.
In the fourth quarter of 2021, Picanol launched its PicConnect customer platform. It is a new, all-digital platform offering a wide range of functionality from industrial IoT to service-related applications. Additionally, Picanol introduced its latest generation of air jet and rapier weaving machines, called the Connect generation. These next-generation weaving machines rely on connectivity and increased data availability (Machinery & Technologies segment).
In the fourth quarter of 2021, the Performance Chemicals business unit changed its name to become Kuhlmann Europe (Industrial Solutions segment). Kuhlmann Europe terminated in 2021 its operating agreement for the production of sulfur derivatives in Tessenderlo, Belgium (Kuhlmann Belgium). The deterioration of market conditions, the still limited availability of raw materials and the rise in electricity prices have made the activity of sulfur derivatives economically unfeasible.
The 2021 result amounted to €160.7 million compared to €55.4 million in 2020. The result was positively impacted by foreign exchange gains and losses, mainly on unhedged intragroup loans and cash and cash equivalents in USD (+15.3 million euros) and by the unrealized profit on the Rieter shares, resulting from the revaluation at fair value at the share price on 31 December.
Following the launch of the new generation Connect weaving machines in 2021, Picanol introduced the OmniPlus-i TC Connect in January 2022. This execution dedicated to weaving tire cord fabrics has now been upgraded to the latest technology to air jet and combined with the Connect Generation features.
The group anticipates a high level of uncertainty in 2022 due to the ongoing conflict in Eastern Europe, difficult supply chain circumstances and other challenges following the coronavirus pandemic. The group is facing higher logistics, energy and raw material costs, which means that our sales margin could be under pressure in the coming months. Based on currently available information, the group expects adjusted EBITDA in 2022 to be lower than in 2021. This forecast does not include the risk of a further deterioration in economic and financial market conditions.
Fibre2Fashion (RR) Press Office