Business development Group & Divisions
Phoenix Mecano significantly increased its Group-level profitability once again in financial year 2022. Dynamic growth in industrial activities almost completely offset the decline in sales in the DewertOkin Technology Group division.
Phoenix Mecano successfully overcame the challenges of 2022. The Group was able to further expand its leading market positions while achieving record profitability. Key to this was the consistent implementation of its strategy, with an unwavering focus on profitability and portfolio streamlining across all activities. Phoenix Mecano concentrated on two growth areas in particular. The Industrial Components and Enclosure Systems divisions performed very successfully in industrial applications, expanding their leading market positions while at the same time boosting profitability. The DewertOkin Technology Group, on the other hand, experienced its first market downturn in decades, finding itself caught in a perfect storm of supply chain disruptions, rocketing raw material costs and inflation.
The global niches in which Phoenix Mecano is a leader are driven by megatrends. Industrial automation and global decarbonisation initiatives are steadily increasing demand for automation modules and enclosure solutions. Another unstoppable trend is demographic change, which is pushing up demand for comfort furniture, nursing beds and medical applications.
In December 2022, Phoenix Mecano held its first Capital Markets Day in Stein am Rhein. Analysts, journalists and investors were given an in-depth insight into the activities of the various divisions, and new medium-term targets up to 2026 were presented. Phoenix Mecano is aiming for average sales growth of 6–10 % at Group level over an economic cycle, both organically and through acquisitions, as well as an EBIT margin of 8–12 % and a return on capital employed (ROCE) of 15 %. In its industrial activities (Enclosure Systems and Industrial Components), it aims to grow faster than GDP in the long term, and has set a target of a double-digit EBIT margin in these two divisions. Further double-digit growth and an EBIT margin in the high single digits is the goal for the DewertOkin Technology Group.