AKWEL: 2021 TURNOVER TOTALS €922.4 MILLION

        Thursday 10 February 2022

2021 TURNOVER TOTALS €922.4 MILLION

• Turnover up when comparing like-for-like figures
• Record net cash position at €108.3 million
• Confirmation of a marked decrease in the 2021 current operating income
  
  
  
  

AKWEL (FR0000053027, AKW, PEA-eligible), the automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, posted consolidated turnover of €922.4m in 2021, down by -1.6%, but up +2.8% comparing like-for-like figures.

Consolidated turnover (1 January to 31 December)

⁽¹⁾   Comparing like-for-like figures.

ACTIVITY CONTINUING TO FALL IN Q4 2021

Compared to the second half of 2020, which saw a clear upturn in activity following the near-stoppage of global automobile production in Q2 2020, Q4 2021 was part of a downward trend that is comparable to the previous year. Production levels in the global automotive industry remained low in a context that continues to pose difficulties in terms of raw materials and electronic components. Over the course of the 2021 financial year as a whole, which was characterised both by an upturn in activity following the 2020 crisis and by a major lack of visibility regarding supply, which disrupted its manufacturer clients’ production, AKWEL recorded growth of 2.8% when comparing like-for-like figures. Currency fluctuations resulted in a significant annual impact of -€40.3m, with the Turkish lira accounting for -€30.8m and the US dollar accounting for -€9.8m.

Products & Functions turnover reached €882.0m in 2021, with slight growth experienced in Cooling activities (+2.5%), which now represents 24.9% of the total turnover, and Mechanisms (+1.9%). The Depollution product line limited its contraction to -2.9% with aftermarket sales. Tooling turnover stood at €30.7m, down by -27.3% after two atypical financial years in 2019 and 2020.

ANALYSIS OF THE BREAKDOWN OF REVENUE

The annual growth trends are relatively similar across geographical zones, aside from Asia and the Middle East where the drop is more pronounced as a result of the more significant reductions in production volumes among supplied manufacturers, particularly in Turkey. The geographical breakdown by production zone was as follows in 2021:

• France: €264.8 million (-3.9%)
• Europe (excluding France) and Africa: €278.1 million (+1.8%)
• North America: €234.8 million (+0.7%)
• Asia and the Middle East (including Turkey): €137.7 million (-8.3%)
• South America: €7.0 million (+37.3%)
  
  
  
  

A STRONG IMPROVEMENT IN NET CASH POSITION

Net cash excluding lease obligations increased by €10.0m in Q4 to reach €108.3m by financial year end, an increase of €47.7m over the year, confirming that the group is continuing to generate strong free cash flow.

OUTLOOK

In a context of low visibility and high volatility in terms of manufacturers’ production levels, AKWEL has succeeded in keeping up with its clients’ demand, thanks in particular to an intentionally cautious stock management approach. Disruption to production and cost increases resulting from supply limitations will, as predicted, weigh heavily on the group’s current operating income for 2021. This is expected to have fallen by around 35%, including an additional provision for warranty returns of around €7m, for a similar level of current operating margin to the 2018 and 2019 financial years.

Visibility regarding the global vehicle market over 2022 remains poor at this time, making all forecasting exercises difficult. In this context, AKWEL nonetheless anticipates an increase in its turnover and will focus its efforts on its industrial model to ensure it efficiently adapts to these market conditions and to better serve its manufacturer clients. Bolstered by a solid financial position, the group will also continue to invest in its long-term development by focusing on product developments in its sector, particularly new mobility solutions.

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