Full Year 2020 Spirax-Sarco Engineering PLC Earnings Call Transcript
Key Points
- Spirax Group PLC (SPXSF) achieved resilient sales and margin performance in 2020 despite challenging market conditions.
- The Watson-Marlow business experienced 9% organic sales growth, driven by strong demand from the Pharmaceutical & Biotechnology sector.
- The company achieved GBP 22 million in temporary cost savings, supporting strong margin performance.
- Spirax Group PLC (SPXSF) maintained operational continuity with all manufacturing and warehouse facilities remaining operational.
- The company accelerated its sustainability agenda, including setting challenging climate change and biodiversity targets.
- Sales were 4% lower, reflecting an organic decline of 3% and adverse currency movements.
- Operating profit was also 4% lower, impacted by currency movements and partially offset by cost containment measures.
- The Steam Specialties business saw a 5.5% organic sales decline, particularly impacted by larger capital projects.
- The Electric Thermal Solutions business experienced a 12% organic sales decline, driven by weaker market conditions in the U.S.
- The company's operating profit margin fell by 10 basis points to 22.7%, with a significant portion of cost savings expected to reverse in 2021.
Hello, and welcome to the Spirax-Sarco Engineering 2020 Full Year Results Call. My name is Josh, and I will be your coordinator for today's event. Please note that this conference is being recorded. (Operator Instructions)
I will now hand you over to your host, Nicholas Anderson, Group Chief Executive, to begin today's conference. Thank you.
Good morning, everyone, and welcome to our 2020 results announcement call. I'm Nicholas Anderson, Group Chief Executive, and I'm joined here today by our CFO, Nimesh Patel. Regarding today's presentation, I will start by sharing the 2020 highlights, and then Nimesh will take you through our financial performance. Later, I will return to cover the operations in 2020 and our outlook for 2021. To finalize, we'll be happy to take questions from the analysts on the call.
Moving to Slide 2, the outstanding efforts and contributions of all our employees worldwide were of pivotal importance to continue serving our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
