\n<\/p>\n
LONDON, UK – EQS Newswire – 29 September 2021 – GEA Group presents today its “Mission
\n26” strategy in London as part of its Capital Markets Day. The plan for
\nthe next five years defines seven key levers to accelerate sustainable,
\nprofitable growth. The focus is on sustainability, innovation and digital
\nsolutions, New Food, as well as excellence initiatives in sales, service and
\noperations. The company is also looking at targeted acquisitions.<\/p>\n
“We have set ourselves the goal of being at the forefront of the
\nmechanical and plant engineering industry,” says Stefan Klebert, CEO GEA.
\n“We take it upon ourselves to protect future generations by offering
\nsustainable solutions for the food and pharmaceutical industries. In these
\nattractive markets, we want to continue to grow profitably while contributing
\nto a better world, as anchored in our purpose – engineering for a better
\nworld.”<\/p>\n
Ambitious financial targets set for 2026<\/b>
\n“Mission 26” sets ambitious financial targets for 2026. Organic sales
\ngrowth of 4.0 to 6.0 percent per year is expected, leading to sales of around
\nEUR 6 billion (FY 2020: EUR 4.635 billion). The EBITDA margin before
\nrestructuring expenses is projected to grow to a record level of more than 15
\npercent (FY 2020: 11.5%). The Group-wide return on capital employed (ROCE) is
\nanticipated to increase significantly to over 30 percent (FY 2020: 17.1%).<\/p>\n
In the context of further targets, a stable ratio of net working capital to
\nsales of 8.0 to 10.0 percent is expected by 2026. Capital expenditure (CAPEX)
\nis projected to be around EUR 200 million annually until 2026. Overall, this
\nleads to strong free cash flow generation of around EUR 2 billion from 2022
\nuntil 2026.<\/p>\n
“We are creating significant value for our shareholders through 2026
\nand beyond,” says Marcus Ketter, CFO. “Our shareholders will
\nparticipate in this success with sustainable dividend increases.”<\/p>\n
Holistic climate and sustainability approach<\/b>
“Sustainability is firmly anchored in the company’s DNA and is
GEA drives product innovation with R&D and digitalization<\/b> In addition to introducing new products, GEA will offer customers more
Growth market New Food: GEA with unique position<\/b> GEA has already demonstrated its strength in this dynamic market by winning
Excellence initiatives in sales, service and operations<\/b><\/p>\n Further growth opportunities for “Mission 26” lie in sales, service,
Further growth potential was also identified in the service area, which is a
The optimization measures announced at the 2019 Capital Markets Day
“Global Operations is undergoing a comprehensive and long-term
GEA examines possible acquisitions<\/b> Outlook for business development in 2021 and 2022 confirmed<\/b> At the Capital Markets Day in September 2019, GEA communicated its targets
Organic sales to grow by an average of
4.0 to 6.0 percent annually through 2026 Record EBITDA margin before restructuring
charges of more than 15 percent expected by 2026 Tapping new opportunities in the dynamic New
Food market and the service business to drive profitable growth Company commits to ambitious climate and
sustainability targets LONDON, …<\/p>\n","protected":false},"author":1,"featured_media":17801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/17800"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=17800"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/17800\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media\/17801"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=17800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=17800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=17800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIn June 2021, GEA presented its interim targets for reducing its own greenhouse
\ngas emissions alongside its net zero ambition for 2040. Greenhouse gas
\nemissions in Scopes 1 and 2 are to be reduced by 60 percent and in Scope 3 by
\n18 percent by 2030 (base year 2019). The Science Based Targets initiative
\n(SBTi), the globally recognized independent body for reviewing climate targets,
\nvalidated GEA’s CO2<\/sub> reduction targets in September 2021. SBTi thus
\nconfirms that GEA’s interim targets follow the latest climate science and make
\nan effective contribution to achieving the 1.5-degree Celsius target of the
\nParis Climate Agreement.<\/p>\n
\nIn addition to the climate targets already communicated, GEA has set ambitious
\nESG targets. Combined, these measures focus on environmentally sustainable
\ncustomer solutions and responsible operations. Furthermore, GEA aims to be the
\nemployer of choice in the industry.<\/p>\n
\ntherefore also an essential part of Mission 26,” says Klebert. “With
\nour ambitious approach, we help our customers achieve their own environmental
\ngoals. Likewise, we strive for the highest standards in our operations and
\nsupport our employees in developing their skills. In this way, we live up to
\nour social responsibility and ensure GEA’s lasting success.”<\/p>\n
\n“Innovation & Digitalization” are also expected to make a
\nsignificant contribution to realizing the goals of “Mission 26”.
\nHere, GEA aims to increase the proportion of sales of products that are less
\nthan five years old – from the current level of 10 percent to about 30 percent.
\nTo fuel this development, GEA will increase its research & development
\nspending by approximately 45 percent over the next few years.<\/p>\n
\ndigital solutions to further enhance their processes and GEA machine
\nefficiency. To drive the digital customer journey and the development of
\ndigital solutions forward, these competencies haven been combined under the
\nnewly created position of Chief Digital Officer (CDO), effective August 1,
\n2021.<\/p>\n
\nIn the dynamically growing New Food market, GEA will expand its already strong
\nposition and become a market leader. Here, the company intends to leverage its
\nstrengths in scaling industrial applications and its unique position as a
\nfull-line supplier. GEA anticipates order intake for newly developed and
\nexisting machines from this segment to exceed EUR 400 million per year by 2026.
\n“Consumer expectations around food are changing. For example,
\nenvironmental impact and animal welfare are increasingly prioritized, and
\ndemand for high-quality, protein-rich foods is growing rapidly. GEA is
\noptimally positioned to meet this demand,” explains Klebert.<\/p>\n
\none of the largest orders in the company’s history: Novozymes, the world’s
\nlargest supplier of enzyme and microbial technologies in Denmark, is entrusting
\nGEA with the turnkey fitting of a large-scale plant in the U.S. to produce
\nplant-based proteins.<\/p>\n
\npurchasing and production. In GEA’s regions and countries, sales effectiveness
\nand presence will be better exploited by deploying more of the company’s own
\nsales staff in key markets. Sales of new machines are expected to grow by 4.0
\nto 5.0 percent per year until 2026.<\/p>\n
\nresilient and profitable business for GEA. The aim is to increase coverage and
\nexpand the service business with customers by 2026, thereby boosting recurring
\nrevenue. This approach is expected to generate annual organic revenue growth of
\n5.0 to 6.0 percent in the service business until 2026.<\/p>\n
\nimpacting purchasing, production and logistics will be continued. In the
\nprocess, purchasing activities were bundled in a central purchasing
\norganization, the production network was improved, and greater flexibility was
\ncreated at sites. The aim is to enable a transition to best-in-class
\nprocurement by 2026, further optimize the production network and reduce
\ndelivery times to customers.<\/p>\n
\ntransformation process,” explains Johannes Giloth, COO GEA: “In
\naddition to cost reductions, this also involves creating structures for further
\ngrowth. In this way, Global Operations will continue to have a significant
\npositive impact on profitability in the future.” Between 2022 and 2026,
\nfurther optimizations in purchasing (EUR 90 million) and production (EUR 60
\nmillion) are expected to have a total net impact on EBITDA of EUR 150 million.<\/p>\n
\nStrong cash generation and a solid balance sheet will enable external growth.
\nGEA will therefore examine value-enhancing acquisitions to strengthen its
\nportfolio.<\/p>\n
\nGEA confirms the guidance for fiscal year 2021 that was raised in July 2021.
\nOrganic growth of 5.0 to 7.0 percent is expected for revenue. EBITDA before
\nrestructuring expenses at constant exchange rates is anticipated to be in a
\nrange between EUR 600 million and EUR 630 million. The outlook for ROCE at constant
\nexchange rates is likely to be in the range between 23 to 26 percent.<\/p>\n
\nup to 2022. In March 2021, when the annual figures for 2020 were presented, GEA
\nadjusted its medium-term financial targets for 2022 upwards. GEA has confirmed
\nthese again. Group revenue is expected to grow by an average of 2.0 to 3.0
\npercent annually from 2019 until 2022, the EBITDA margin before restructuring
\nexpenses is to increase to a target corridor of 12.5 to 13.5 percent (Capital
\nMarkets Day 2019: 11.5 to 13.5 percent) and the ratio of net working capital to
\nrevenue is to be reduced to the range between 8.0 and 10.0 percent (Capital
\nMarkets Day 2019: 12.0 to 14.0 percent).<\/p>\n<\/p><\/div>\n\n
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