Business development Group & Divisions
The Phoenix Mecano Group’s unwavering focus on megatrends and growth areas such as digitalisation and automation paid dividends in financial year 2021. All divisions recorded double-digit sales growth and the Group saw a disproportionate increase in profitability.
Phoenix Mecano continued to grow during the coronavirus crisis, even though in many places the global industrial sector experienced double-digit slumps and only managed to return to pre-crisis levels in the last 12 months. This remarkable achievement is the result of its steadily increasing independence from industry-driven investment cycles in the end markets of the consumer durables industry. The associated high rate of growth – throughout the pandemic – is attributable to a systematically pursued growth strategy. This saw the Group grow organically for the most part, thanks to a strategic increase in the proportion of value added generated in-house and a targeted expansion of its range of integrated system solutions. These consist of multiple mechanical components combined with cutting-edge electronic interfaces, backed up by vital integration work and engineering services. Phoenix Mecano offers the complete package, from product development to providing the integrated and tested system solution.
Operationally speaking, the second year of the COVID-19 pandemic presented further considerable challenges. Regional lockdowns caused repeated disruptions to supply chains. The persistent shortage and high cost of transport capacity as well as sharp increases in the prices of various industrial metals and plastic pellets had an impact on all divisions. But thanks to its global presence, the Phoenix Mecano Group was able to open up alternative sources of supply. Necessary price adjustments were passed onto the market quickly yet cautiously.
However, the top priority during the pandemic was always the health of our employees. It was their collective efforts that allowed us to maintain delivery services for our customers, despite component shortages and pandemic-related restrictions. This formed the basis for the Group’s successful results in 2021.
Industrial Components
Sales and result increased significantly and a profitability of almost 14 % was achieved. All business areas that made losses the previous year saw a turnaround. The high book-to-bill ratio at the end of 2021 suggests that the positive business performance will continue in 2022.
