Carel Defies Difficult Trading Conditions
Italian multinational control solutions manufacturer CAREL INDUSTRIES S.p.A. has reported revenue growth of 16.8 per cent and an EBITDA Margin of 19.3 per cent in its end of fiscal year 2019 accounts.
The global supplier to the HVAC-R industries and developer of humidification and evaporative cooling solutions reported consolidated revenues of € 327.4 million (an increase of 16.8 per cent on its 2018 figure) and consolidated group EBITDA of € 63.1 million (19.3 per cent of revenue).
CEO, Francesco Nalini, said:
“In 2019 Carel reported a solid revenue growth of 16.8 per cent (5.1 per cent on a like-for-like basis) and an EBITDA Margin of 19.3 per cent.
“These results are even more significant in light of an unfavourable macroeconomic scenario, characterized by a slowdown in the European economy and trade tensions between the United States and China. Even in a non optimal situation, therefore, the performances recorded are particularly positive and reflect the continuous implementation of our multi-year strategic guidelines, which in 2019 mainly consisted in: completing the plan to expand the Group’s production capacity, with a two-year investment of approximately 20 million Euros; the process of integrating the two companies acquired in 2018, Hygromatik and Recuperator, which allowed them to achieve a cumulative growth in revenues of around 10 per cent compared to the previous year; and the signing of the first multi-year contracts for the supply of digital services to important international supermarket chains. In addition, innovation was a focal point, with investments in Research and Development of approximately 18 million (+12.6 per cent compared to 2018) and the constant commitment to search for increasingly sustainable solutions from an environmental point of view. The same enthusiasm that guided us in 2019 will be fundamental to overcome the challenges that 2020 presents us, in particular the recent spread of Coronavirus/COVID-19, which we will face by exploiting the resilience of our recently expanded production footprint. “
Revenues amounted to €327.4 million, compared to €280.2 million as of 31 December 2018, with a +16.8 percentage increase. All geographical areas (EMEA, Asia Pacific, North America and South America) and all segments (HVAC and Refrigeration) contributed to this performance. The strategy of diversifying the target markets, the strong push for cross-selling and consolidation of the customer portfolio and the continuous updating of the solutions proposed have therefore proved effective even in a context of general market uncertainty. The contribution from Hygromatik and Recuperator was approximately €32.7 million, a 10 per cent overall revenues growth compared to what achieved by these two companies in 2018.
The geographical area that recorded the greatest organic increase in percentage terms was North America, with a growth in revenues of around 20%. EMEA (Europe, Middle East, Africa) also reported double-digit growth thanks to the contribution of the newly-acquired companies mentioned above and despite the slowdown in the main economies of the eurozone. Performance in APAC (Asia Pacific) was positive, with a growth of 8%, despite persistent volatility, mainly due to the introduction of duties on US/China trade. Finally, South America as an area recorded growth of approximately 9.9%, driven mainly by the positive trend in Brazil.
High growth in HVAC once again benefitted from the effect of the inclusion of Hygromatik and Recuperator in the group’s consolidated figures, whilst the performance recorded in the Refrigeration sector was mainly due to organic growth. In the second and third quarter of the year, Refrigeration sector reported a significant slow-down in its growth rate in Europe, this trend reversed in the last quarter of 2019.