Manitou revenue and profits rise in fluctuating markets
31 July 2023
Manitou has reported a 33% rise in revenue for the first half of 2023, against a backdrop of increasingy uncertainty in some markets and a slowing order book.
Manitou’s sales were €1,402 million in the first half of this year, while second quarter sales stood at €736m - up 21% on the same period in 2022. The group’s operating income nearly doubled in the half year to €88.1 million from €45.8 million.
Conversely, Manitou’s order book dropped to €3,061 million at the end of the second quarter this year, compared to the €3,554 million at the same time in 2022.
Michel Denis, president & CEO of Manitou Group said although sales were increasing in all geographical areas, the outlook was less clear. “The first half of 2023 marks the Group’s comeback to very positive growth and performance. This record level of activity is the result of our high production levels, achieved in a context of better operational fluidity.”
Denis added that the fast improvement in profitability was the result of order the company’s careful management of the order book, in terms of price adjustments and flow, along with the slowdown in inflation on raw materials.
The results follow a strong performance from Manitou in its full 2022 year, thanks to a strengthening rental sector.
Commenting on global conditions, Denis said, “The outlook for our markets is becoming less visible. In the construction sector, the slowdown we observed in Germany and the UK is gradually spreading across the European continent, while growth opportunities continue in other geographical areas.
“The suspension of order intake on certain product lines has contributed to the decline in the order book, which remains very deep.”
Despite the challenges Denis said he expected group revenue growth of around 20% in 2023 compared with 2022, with a recurring operating profit for 2023 to be over 5.5% of revenues, compared with 3.6% for 2022.”
Looking at the group’s separate segments, the Product division reported revenues of €1,201 million, up 39% over six months compared with 2022. The policy of increasing equipment prices implemented in 2022 to support material inflation and an improvement in the supply chain aided the increase. The first half of 2022 had also continued to be affected by the Covid pandemic.
Recurring operating profit for the Product division rose sharply by €51.6 million to €74.4 million, compared with €22.8 million in the first half of 2022.
With revenues of €200 million, the Services & Solutions division (S&S) recorded growth of 5% over months. The division is driven by its spare parts activity, with a gradual improvement in the supply chain.
The division’s recurring operating profit came to €13.6 million, down €9.3 million compared with the first half of 2022.