SAF-Holland releases FY2021 results

Equipment specialist, SAF-Holland, increased group sales by 29.9 per cent from €960 million to €1,247 billion.

The supplier of truck and trailer components recently posted its financial results for 2021 which clearly demonstrates an increase in demand for SAF-Holland products.

“We look back on a successful 2021,” said SAF-Holland SE CEO, Alexander Geis.

“We have slightly exceeded or achieved our targets for group sales and adjusted EBIT margin, which we raised last November. And this despite of the ongoing Covid-19 pandemic, strained supply chains and massive cost increases for steel, energy and freight. Without the strong cost inflation, we would have achieved a higher margin.”

The business, according to Geis, is also well positioned financially.

“Our equity ratio was a very solid 36.6 per cent as of December 31, 2021. The leverage ratio – the ratio of net financial debt to EBITDA – was 1.58, compared to 2.40 a year ago. Our solid financial profile allows us to take advantage of opportunities that may arise in the market.”

Adjusted EBIT improved over-proportionately by 58.4 per cent to €93.1 million (previous year €58.8 million) despite strongly increased cost for steel, freight and energy. This corresponds to an adjusted EBIT margin of 7.5 per cent (previous year 6.1%). The significantly lower selling and administrative expenses ratio had a particularly positive effect on the margin.

In the EMEA region, sales improved by 32.9 per cent to €734.6 million in 2021 (previous year €552.9 million), mainly based on strong OE business. Adjusted for FX effects, sales grew by 33.8 per cent.

“High steel prices and high freight and energy costs had a disproportionate negative impact on the cost of sales ratio, while the share of selling expenses declined significantly,” said SAF-Holland. “In total, this led to an adjusted EBIT of €67.2 million (previous year €52.7 million). The adjusted EBIT margin of 9.2 per cent was almost maintained at the previous year’s level of 9.5 per cent despite the cost burdens.”

In the Americas region, 2021 sales increased by 20.9 per cent to €401.8 million (previous year €332.3 million) due to strong aftermarket and truck OE business. Adjusted for FX effects, sales improved by 25.0 per cent.

“Cost increases for steel as well as higher freight and energy costs also burdened the Americas region,” said SAF-Holland. “Adjusted EBIT of €24.0 million was 78.3 per cent higher than in 2020 (€13.5 million). The adjusted EBIT margin improved significantly from 4.1 per cent to 6.0 per cent.

The Asia-Pacific (APAC) region achieved sales of €110.2 million in 2021 (previous year €74.3 million), an increase of 48.3 per cent. Adjusted for FX effects, sales increased by 47.9 per cent year-on-year.

“The main reasons for this significant increase in sales were the strong growth in OE business in India and the improved demand situation in Australia,” said SAF-Holland.

“The aftermarket business also made a positive contribution to sales growth.

“Compared to the strong increase in sales, cost of sales have risen only disproportionately. The lower selling and administrative expenses ratio also had a positive margin effect. The adjusted EBIT improved from €-7.3 million to a positive €1.9 million. The adjusted EBIT margin was 1.7 per cent (previous year -9.9% per cent).

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