– Excellent sales and net profit figures
– Benefit from international stock position and sourcing network
– Scale of company boosting profitability
ZWIJNDRECHT, the Netherlands /PRNewswire/ — The Van Leeuwen Pipe and Tube Group achieved excellent sales and net profit figures in 2021. The result was positively influenced by an improving market demand and higher material prices. Disruptions in the global supply chain led to material shortages during the year. With its strong international stock position and sourcing network, Van Leeuwen was however able to continue to supply customers with materials.
Van Leeuwen’s total sales amounted to € 1,431 million in 2021 (2020: € 1,178 million). The operating result was € 79 million (2020: € 15 million) and the net result amounted to € 64 million (2020: € 9.4 million). Solvency has improved significantly to 40.7% (2020: 36.8%).
At the beginning of 2021, economic conditions were more favorable than expected. The recovering economy led to major supply line disruptions and material shortages worldwide. Prices and delivery times at suppliers increased rapidly. After the summer, shortages became smaller and there was even a limited price decrease for welded pipes. Due to the very rapidly increasing energy prices, prices however increased again, especially for seamless pipes. With its strong international stock position and worldwide sourcing network, Van Leeuwen was able to respond effectively to these developments.
In the Industry segment, market demand in Europe was good, especially in the automotive, mechanical engineering, civil engineering and construction segments. Sales grew significantly throughout Europe, particularly at Van Leeuwen companies in Northern Europe, Central Europe and Switzerland. Despite the globally less favorable market situation in the Energy segment, the Paris office supplied, among other projects, to a large pipeline project in North Africa.
The outlook for 2022 is positive, although some factors remain uncertain. In financial terms, the consequences of the invasion of Ukraine by Russia will be relatively limited for Van Leeuwen, given the small size of the activities. It is however unclear what the longer-term effect will be with regard to the availability of materials and overall development of the economy.
Peter Rietberg, Chairman of the Management Board: “In 2021, under exceptional market conditions, result as well as sales records were broken. With the inventiveness and commitment of our international network, we were able to continue to supply our customers with materials. We profit from the extra strength that we gained with the acquisition of Benteler Distribution at the end of 2019. It is difficult to predict how 2022 will unfold. But as a family-owned business with a history dating back almost one hundred years, we know very well how to deal with uncertain and changing market conditions.”