Positive results in 2021 financial year despite various external challenges
Despite massive additional costs, POLYTEC GROUP recorded acceptable results in the 2021 financial year. In difficult negotiations, the group managed to pass on various burdens from market distortions to its customers, at least in part. POLYTEC excels in high flexibility and readiness to continuously adapt to new framework conditions, by reconstructing, streamlining and further developments and uses this approach in current environment.
During the 2021 financial year, consolidated POLYTEC GROUP sales revenues amounted to EUR 555.9 million and were therefore 6.5% or EUR 33.9 million above the figure for the preceding year (EUR 522.0 million) owing to the COVID-19-related lower comparative basis.
The increase in sales revenues for the year as a whole is due mainly to higher demand in the Passenger Cars & Light Commercial Vehicles market area (+18.7%). By contrast, sales revenues in the Commercial Vehicles market area declined significantly as compared to the previous year (-21.9%). The Smart Plastic & Industrial Applications market area remained roughly at the 2020 level (-2.3%).
Group business development in 2021
- Group sales revenues amounted to EUR 555.9 million, thereof 32.7% taxonomy-eligible
- EBITDA amounted to EUR 44.8 million, EBITDA margin 8.1%
- EBIT totalled EUR 12.3 million, EBIT margin 2.2%
- Earnings after tax reached EUR 7.0 million
- Earnings per share EUR 0.32, proposed dividend per share EUR 0.10
- Equity ratio was up 0.7 percentage points at 42.0%
- Net debt amounted to EUR 79.6 million
- Employees (FTE incl. leasing personnel, as at 31 December 2021) 3,420
- CO2 emissions markedly reduced by 44.6% or 20,754 tonnes to 25,783 tonnes
In the 2021 financial year, POLYTEC GROUP EBITDA totalled EUR 44.8 million (2020: EUR 48.3 million) and as compared to the previous year, the EBITDA margin was 1.2 percentage points lower, falling from 9.3% to 8.1%. In the previous year, the deconsolidation of the “Industrial” business unit, among others, had a positive effect on EBITDA of EUR 17.0 million. However, in 2021 the turbulent developments in the raw material and energy markets had a noticeable impact upon the group’s earnings situation, especially from the second quarter onwards. In addition, the POLYTEC GROUP’s earnings decreased due to significantly reduced call-off volumes, repeated call-off cancellations by automotive customers at extremely short notice and the increased expense emanating from considerably more difficult cost adjustment measures.
POLYTEC GROUP EBIT in 2021 totalled EUR 12.3 million (2020: EUR 13.0 million). By comparison with 2020, the EBIT margin fell by 0.3 percentage points from 2.5% to 2.2%.
The POLYTEC GROUP’s financial result amounted to minus EUR 2.7 million (2020: EUR -5.3 million), and earnings after tax totalled EUR 7.0 million (2020: EUR 9.5 million). Earnings per share amounted to EUR 0.32 and were thus above the previous year’s result (EUR 0.29).
The Board of Directors of POLYTEC Holding AG will propose to the 22nd Ordinary Annual General Meeting (to be held on 1 July 2022) the distribution of a dividend of EUR 0.10 per eligible share for the 2021 financial year.
On the 31 December 2021, total group assets amounted to EUR 568.5 million and thus remained at the 2020 level. As compared to the previous year, the equity ratio as at the balance sheet date improved by 0.7 percentage points to 42.0% and therefore continues to demonstrate solidity.
Compared to the 31 December 2020 balance sheet date, net debt was 20.8%, or EUR 13.6 million, higher at EUR 79.6 million. This rise was due primarily to the marked increase in working capital. The notional debt repayment period was prolonged from 1.37 to 1.78 years and as compared to the end of 2020, the gearing ratio rose from 0.28 to 0.33.
Disclosure pursuant to Article 8 EU Taxonomy Regulation: For the 2021 financial year, this resulted in a taxonomy-eligible share of turnover of around 32.7%, taxonomy-eligible investments (CapEx) of 30.7% and taxonomy-eligible operating expenses (OpEx) of 27.0%.
Outlook 2022 financial year
The management of the POLYTEC GROUP suspends its forecast for the 2022 financial year since it is currently not possible to make a qualified assessment of the future development of the economic environment. The main elements of uncertainty are the ongoing economic upheavals caused by the corona pandemic, the shortage of raw materials and other materials, in particular semiconductors, disruptions of the international supply chains and the effects of the war in Ukraine. All of these factors may have an impact on the revenue and earnings development of the POLYTEC GROUP in the 2022 financial year. In particular, it cannot be estimated to what extent additional costs arising for the above-mentioned reasons can be accounted for in sustainable pricing.
The POLYTEC GROUP’s management responds flexibly and promptly to the continuous changes in the business environment and coordinates closely with the group’s customers and suppliers in order to overcome the current challenges together.
The annual financial report and annual report of POLYTEC Holding AG as at 31 December 2021 closing date are available for downloading on the Investor Relations, publications section of the Group’s website.