2021 sales and EBITDA grew double digits on strong volume and pricing actions,
Maintaining Our Margins While Overcoming the Costs of Inflation
Highlight
- Net sales for the full year 2021 were up 11% to 10.1 billion euros versus 2020, with 12% growth driven by volume and 5% driven by pricing. More than half of the full year impact from value initiatives was realized in Q4. Full-year net sales were up +4.4% compared to 2019, reflecting continued momentum in key markets including auto and electronics. In the fourth quarter, net sales grew +22.4% versus 2020 and +17.1% versus 2019.
- The acceleration of the price increase largely offset the impact of €465 million from variable cost inflation.
- Structural cost savings for the full year 2021 were €213 million, bringing the total structural savings since 2019 to €390 million, or 80% of its targeted €500 million (annual run-rate) by the end of 2024.
- Underlying EBITDA grew +27% compared to full year 2020, setting a new record at €2,356 million. Despite the slow recovery in the civil aero market, EBITDA was +8% versus 2019, demonstrating good operating leverage. The underlying EBITDA margin increased to 23.3%, 160 basis points higher than in 2020, despite the high inflation environment. Fourth quarter EBITDA grew +24% organically, or +19% net excluding one-time profit of €27 million.
- The underlying net profit was €1.0 billion, an increase of 68.3% over 2020.
- Strong free cash flow generation of €843 million reflects higher leverage and further working capital improvement which also enabled funding of an increase in capital investment to €736 million for the year.
- Continually strengthening the balance sheet with lower net debt (€249 million) and provisions (€487 million). This brings the leverage ratio to 1.7x, the lowest since 2015.
- ROCE for 2021 reached a record low of 11.4% versus 6.9% in 2020 and 8.1% in 2019.
- The total proposed dividend of €3.85 per share represents an increase of €0.10 per share, subject to shareholders' approval.