Schenck Process delivers a good financial performance despite challenging conditions, demonstrating effective execution, business model strength and strategic focus
Highlights Q4 2020:
- Order intake up 11% compared to Q4 2019
- Sales down 2% compared to Q4 2019
- Adjusted EBITDA slightly ahead; improved EBITDA-margin of 20.1% (Q4 2019: 19.6%)
- Baker Perkins acquisition completed; positive first contributions from Integration
Highlights FY 2020:
- Order intake of 619 m€, down 6% (-4%, currency and acquisition adjusted), strength in food and mining (+7%)
- Sales of 592 m€, decreased 6% (-5%, currency and acquisition adjusted)
- Proactive cost management; reduced overheads (7.5 m€), restructuring benefits (6.7 m€)
- Adjusted EBITDA for 2020 at 91.4 m€ (margin: 15.4%)
- Record order backlog of 312 m€ provides strong momentum for 2021
- Free cash flow of 68 m€, up 8.5 m€ on prior year
In 2020, Schenck Process (SP) continued to deliver for customers, sustained safe operations, won new business and moved forward its strategic agenda – including the Baker Perkins acquisition.
Against the backdrop of the global pandemic, SP achieved a good financial performance by demonstrating the strength of its business model particularly across the Americas and APAC regions. Resilience of sales and profit benefitted from a strong aftermarket contribution (49% of revenues) and growing exposure to the food and mining markets; both segments of strategic focus and accounted for 53% (2019: 47%) of order intake in 2020.
SP achieved substantial progress in its vision to become a global leader in providing world class, sustainable products, integrated services and solutions in process technologies. This journey of transformation is referenced through four strategic pillars; customer, innovation, efficiency and people.
Key highlights in 2020 included first orders received from two US pet food projects with an expected total value of over US$ 125m and a good start to the integration of Baker Perkins with substantial growth opportunities already evident. Good progress was made in driving forward the group’s product and technology platforms with 8 major product innovations launched in 2020 and new digital offerings for customers introduced.
Significant benefits were realized from steps taken to improve operating effectiveness and efficiency including the consolidation of US and European facilities, greater focus on supply chain management and investments to achieve process improvements. The announced restructuring initiatives are underway in the EMEA region.
CEO Keith Cochrane commented:
“Despite the challenges of CoViD-19, we delivered for our customers, looked out for our employees and achieved a good financial performance. In 2021 we will continue to execute effectively on our strategic agenda with a clear focus on our food presence, minerals diversification, aftermarket growth and digital offerings. With a record order backlog and the full year impact of the Baker Perkins acquisition ahead, alongside the benefit of our restructuring initiatives and more positive order intake trends, we expect good growth in 2021 in sales and profitability.”
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