Gestamp said it had “exceeded all its 2021 targets” after full year sales rose 11.2% year on year to EUR8,093m.
EBITDA margin was EUR998m or 12.3%. Net profit was EUR155m and debt was reduced EUR219m to EUR2,266m.
“The results are another example that the efficiency and flexibility measures implemented since 2020 have managed to consolidate the company at profitability levels higher than pre-pandemic (2019) levels, despite the lower market volumes and the instability in production due to supply shortages seen during the year,” the supplier said in a statement.
The revenue rise of11.2% outperformed the 2021 global vehicle production market by 11.8% and the company managed to outperform the market in all regions, exceeding its target of outperforming mid-single-digit market volume growth.
EBITDA of EUR998m was up 31.7% and EBITDA margin of 12.3% compared to 10.2% in 2020 and was in line with the target of exceeding 12%.
“These improvements are the result of the company’s rapid action to face the complicated market context, including the fixed cost reduction and flexibility measures implemented in our transformation plan, as well as the operational stability achieved at the plants,” Gestamp said.
The EUR155m net profit compared to a EUR71m loss in 2020, affected by COVID-19.
“2021 has continued to present significant challenges for the automotive sector. The semiconductor crisis has generated instability in production schemes while the new variants of Covid-19 continue to impact global production,” the supplier said.
“Production volume in 2021 was almost 9% below initial forecasts at the beginning of the year, reaching 77.1m vehicles, almost 12m below pre-pandemic levels in 2019.
To mainly reflect the increase in steel prices and inflationary pressures, Gestamp has adjusted its sales and EBITDA targets. It expects revenue to continue to outperform market production volumes growth in the mid-single-digit range while rising steel prices will add an additional 10-15% of reported revenue growth.
EBITDA is expected to grow between 13% and 15%, or between EUR130m and EUR150m.
“Beyond our financial targets, Gestamp continues to focus on capturing new market opportunities,” it said.
“The transition to electric vehicles is gaining momentum. Electric vehicles are estimated to represent 35% of total light vehicle production in 2028, compared to the estimated 28% in June 2021. In this scenario, Gestamp’s technological experience in adapting traditional products to the needs of electric vehicles, the development of new content around battery boxes, the entry of new purely electric manufacturers and the new needs for outsourcing components manufacturing are some of the opportunities offered by this market in transition.”