Akwel posts decline in sales, profit amid ‘volatile’ 2021

Champfromier, France – Automotive and heavy vehicles parts supplier Akwel has seen a 35% year-on-year decline in operating income on slightly lower annual sales in 2021. 

The French group posted consolidated sales of €922.4 million in 2021, down 1.6% compared to last year but “up 2.8% comparing like-for-like figures,” said the manufacturer of fluid management systems 10 Feb.

While sales were up 26% at €487 million in the first half, third & fourth quarter results saw declines of 19.3% and 22.4% respectively, to bring the down the overall revenue to €922 million. 

The group's products & functions sales reached €882.0m in 2021, with slight a 2.5% growth experienced in ‘cooling activities’, and a 1.9% growth within ‘mechanisms’.

The division manufactures air intake pipes; oil, fuel cooling systems as well as mechanisms for opening and closing doors. 

Currency fluctuations resulted in a significant negative impact of €40.3 million over the year, with the Turkish lira accounting for €30.8 million and the US dollar accounting for €9.8m, Akwel added.

Akwel said the 2021 financial year as a whole was characterised both by an upturn in activity following the 2020 crisis and by a major lack of visibility regarding supply.

In a context of high volatility in terms of manufacturers’ production levels, the automotive supplier said it succeeded in “keeping up with its clients’ demand.” 

However, the French group noted that supply limitations will weigh on the current operating income for 2021, which it said, “is expected to have fallen by around 35% for a similar level of margin to the 2018 and 2019 financial years.”

Akwel did not provide further details, but according to its previous results statements, the company’s earnings stood at €130 million and €124 million in the years 2019 and 2018 respectively. Operating margin in 2019 was 8.4%, up 1.1% compared to the year before.

The group noted that visibility regarding the global vehicle market over 2022 remained poor. 

“Akwel nonetheless anticipates an increase in its turnover and will focus its efforts on its industrial model,” the group said, adding that ‘new mobility solutions’ will be the centre of focus for its upcoming investments.