Manitou projects 20% growth in 2022 on ‘fantastic’ 2021 results
Staff Report, March 8, 2022
French equipment major sees revenues grow 18% while order book swells to a record $3.2bn
Manitou has reported net sales of $2.04 billion for the year 2021, recording a growth of 18% over the previous year on the back of “an unprecedented order intake” and a “record order book of $3.26bn.
Terming 2021 as a “fantastic” year for the company, Michel Denis, president and CEO of Manitou, said the French company was forecasting 20% growth for 2022 after accounting for the effects of the war in Ukraine.
“The year 2021 has been marked by a fantastic commercial dynamic, with an unprecedented order intake and a record order book of three billion euros at the end of 2021. Our revenues grew by 18% compared to 2020 in an operating context disrupted by health crises, component shortages and inflationary pressures. Recurring operating income amounted to 6.6% of revenues. The Group's financial solidity was strengthened during the year, which led the Board of Directors to propose the payment of a dividend of 0.80 euro per share at the next General Shareholders’ Meeting,” said Denis.
“The acceleration of inflation at the end of last year has created a squeeze on margins which we expect to continue in the first half of 2022, before being gradually corrected in the second half. Furthermore, in the absence of new major disruptions in the global economy, inflation dynamics, and based on the assessment to date of the effects of the war in Ukraine, the group expects its revenues to grow by more than 20% compared to 2021 and to sustain its operating income rate to revenue.”
Manitou’s Product division, combining the former MHA and CEP divisions, reported revenue of €1,534.8 million in 2021, up 19.4% compared with a 2020 base that had been deeply impacted by the Covid-19 crisis. The division benefited from the rebound seen at the end of 2020. Its revenues have increased in all geographic areas and in all its markets. In 2021, the acceleration of production speeds and supply chain management took place in a disrupted context by component shortages. The margin on cost of sales was 223.9 million, up 40.1% compared with financial year 2020. It benefited from the upturn in business and the 2.2 points improvement in the margin rate, which had been affected in 2020 by production shutdowns and the implementation of sanitary measures, said a statement from Manitou.
that in 2021, the margin is benefiting from the increase in prices and the control of fixed costs. However, material price inflation, which increased in the second half of the year, had an unfavourable impact. R&D and other indirect costs increased to support innovation and growth. Thus, the recurring operating income rose by 44.4 million euros (+94.7%) to 91.3 million euros (5.9% of revenues) compared with 46.9 million euros in 2020 (3.6% of revenues).
The company added that its Services & Solutions (S&S) division recorded revenue growth of 13.2% for the year (+13.3% at constant exchange rates). Business grew in all geographical areas and in all its markets, except for services activities, which were more resilient in 2020. This rebound resulted in an increase in the margin on cost of sales of 3.5 million euro compared to 2020, to 92.5 million euro. The impact of the increase in activity was, however, limited by the 2.4 points decline in the margin on cost of sales.
According to Manitou, this deterioration was due to higher material and direct costs. Administrative, sales, marketing and service expenses were up 18.1% (+€9.2 m), given the rebound in activity. As a result, the division's profitability was €32.5 million (9.6% of revenues), down €6.0 million compared to 2020 (€38.4 million, or 12.8% of revenues).