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Bekaert: First quarter trading update 2022

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Bekaert
Bekaert

Bekaert delivers strong sales growth in a challenging environment

Highlights, market developments and actions in the first quarter of 2022

Highlights

  • Consolidated sales of € 1 386 million (+23%) and combined sales of € 1 659 million (+24%)

  • Strong sales growth in all four business units on lower volumes across several business activities

  • Continued pricing discipline in an inflationary environment and positive price-mix effects on the back of a structural improvement of the business portfolio

Market developments

  • Strong momentum in European and North American markets; recovering activity level in Latin America after a soft quarter start; subdued demand in China as a result of the stringent Covid-19 lockdown measures

  • Acceleration of the reverse globalization. This trend is due to continued global supply chain interruptions on the back of raw material shortages and freight bottlenecks

  • Continued high raw material prices and surging cost inflation of transportation and energy

Priorities and actions

While the global macro environment remains unstable due to the developments in Ukraine, the resurgence of the Covid-19-pandemic in China, and the supply chain issues and cost inflation, Bekaert continues to execute its transformation agenda at a high pace. Our first quarter actions have been specifically geared towards:

  • Leveraging the benefits from our global footprint and local services and sourcing channels, making us well positioned to address the ongoing deglobalization trends

  • Driving further agility of the supply chain management, which has allowed to:

    • Secure supply continuity to customers

    • Adjust the sourcing channels that were affected by the situation in Ukraine

  • Strong pricing discipline and execution, significantly offsetting the overall cost inflation

  • Seizing the growth opportunities arising from sustainability and innovation trends:

    • Strong growth in low-carbon concrete reinforcement solutions

    • Successful project wins in offshore energy tenders, progress in building a leading innovation position in hydrogen electrolysis technologies, and other product and service solutions supporting the energy transition

  • Continued focus on protecting the health & safety and wellbeing of our employees and their families

Outlook

While the 2022 outlook remains particularly volatile, we project the current organic revenue run rate to continue throughout the year.

Despite the overall increased uncertainty and high cost inflation, our profitability ambitions for the medium term (2022-2026) remain unchanged.

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