Full Year 2021 Spirax-Sarco Engineering PLC Earnings Call Transcript
Key Points
- Record revenues in 2021, with organic growth 13% above pre-pandemic levels.
- Exceptional 25.3% profit margin driven by strong sales growth.
- Significant progress in ESG initiatives, including a refreshed sustainability strategy and inclusion plan.
- Strong cash generation, reducing net debt to 0.35x EBITDA despite record capital investments.
- Watson-Marlow delivered outstanding results with 32% organic sales growth and 46% organic profit growth.
- Suspension of all trading with Russia due to geopolitical tensions, impacting 1% of group revenues.
- Challenges in Chromalox's European operations, which remain loss-making.
- Material cost inflation across various input commodities and components.
- Global supply chain disruptions impacting sales and operational performance.
- Increased revenue investments impacting profit margins, particularly in the second half of the year.
Good morning, everyone, and thank you for joining us on today's call. (Operator Instructions)
Welcome to our 2021 results 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 2021 highlights, and then Nimesh will take you through the financial performance. Later, I will return to cover the operations in 2021 and our outlook for 2022. To finalize, we'll be happy to take questions from the analysts who have joined us today.
Now before we get started into today's presentation, I'd like to update you on our position regarding the tragic events unfolding in Ukraine over the past 2 weeks. We are all shocked and appalled by these tragic events and strongly condemn the Russian authorities for their actions. Our concerns and priorities are for the safety and well-being of all our employees across the region. We remain in constant contact with
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