Glaston Corporation’s financial statements for 2021 show the company’s markets saw a continued recovery and strong growth, and expect positive development in 2022 with good progress for both machines and services business.
“At the start of 2022, our order backlog was 48% higher than the previous year providing a strong starting point for 2022 and supporting Glaston’s net sales and profitability development. In 2022, Glaston will focus on the execution of its strategy which will incur costs and capital expenditure ahead of the effect on revenue growth,” a company press release states.
The company says the COVID-19 pandemic and supply chain disturbances are a continued challenge.
Glaston estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported last year. In 2021, Group net sales totaled $206.4 million* and comparable EBITA was $12.5 million*.
“For Glaston, 2021 ended on a positive note. The markets continued to grow strongly in the fourth quarter with high demand in all segments. Orders received increased by 13% to $66.7 million* compared to the corresponding period in the previous year. The comparison period in 2020 already had a pre-COVID level of order intake after the pandemic impacted quarters. Thus, the 13% growth in orders shows the strength of the market and Glaston’s capabilities. For the full year, orders received saw excellent progress: 41% above the level of the previous year, totaling $244.2 million*, with all segments contributing to the outcome,” says president and CEO Anders Dahlblom.
“Fourth-quarter net sales, as well as full-year net sales, increased. Net sales in the fourth quarter grew by 37% and totaled EUR 52.6 (38.3) million. EUR 182.7 (170.1) million was recorded for the full year, with all product areas exceeding the previous year’s levels. For services, growth of 15% was recorded. Despite the additional challenges caused by supply chain disruptions with related price increases and the still ongoing pandemic, we can be satisfied with the improvement in profitability. Comparable EBITA for the fourth quarter was $3.9 million* or 6.6% of net sales, up 68% compared to the fourth quarter of 2020.”
The supply chain disruptions constitute the main short-term risk for the company’s operations. These disruptions are expected to continue into 2022, and Glaston is actively mitigating the higher than normal risks related to raw materials, component prices and availability, as well as logistics cost increases and freight availability. Major supply chain disruptions may impact the company’s performance, according to the press release.
Even though the impact of the COVID-19 pandemic has decreased, there is still significant uncertainty related to the pandemic in terms of its duration and new virus variants, which might be significantly more transmissible, such as the current Omicron variant. New lockdowns and travel restrictions are affecting service work and the spare parts business and machine installations. Labor shortages and rising employee turnover are a growing concern, especially in the U.S., the release states.
*indicates financial information converted from Euros to US Dollars on February 14, 2021.