A self-help story in attractive markets
About 80% of our sales are generated in the food, beverage and pharmaceutical industries. These markets are characterised by stable growth rates with comparatively small fluctuations. This is based on important global megatrends such as continuous population growth, the expansion of the middle classes, the demand for alternative protein sources and the trend towards healthy, functional and individual nutrition.
Our solutions place us in the best position to benefit from the growth of our markets driven by megatrends. Our long-standing customer relationships are a great asset. Not only do our customers trust our products, but the close contact we have with our customers helps us to continuously improve our products and develop new ones.
With the introduction of our new 5-division organisational structure on January 1, 2020, we have entrusted corporate responsibility where it belongs – to those who are in direct contact with our customers. As such, the responsibility for results lies directly with the divisions. This will ensure greater financial transparency; a prerequisite for the expected increase in profitability in the coming years.
By 2022, we want to increase our sales by an average of 2% to 3% per year. We also intend to increase the EBITDA margin (before restructuring expenses) from 11.5% in 2020 to 12.5%-13.5% in 2022. In order to improve profitability, we have defined a comprehensive set of different measures that will help improve our margins, largely independently of external factors. As well as adjusting the number of employees and realigning procurement structures, we plan to optimise production and increase efficiency in sales. All this while enhancing and harmonising the existing ERP landscape.
GEA is well-funded thanks to the use of various financial instruments. The equity ratio at the end of 2020 was around 34% and net liquidity amounted to €402 million. We also intend to reduce net current assets to provide further opportunities to generate liquid assets.
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