COIL, world leader in aluminium anodising, announces annual sales of €21.8 M for the 2023 financial year, a decline of -17.5% against 2022. Sales were impacted by a difficult economic environment, with a sharp slowdown in demand for Tolling services throughout the year and a decline in Package Sales from the second half of the year onwards, against strong comparatives.
After two years of expansion in 2021 (9. 7%) and 2022 (4. 9%) driven by the post-Covid recovery, the Company’s sales declined sharply in 2023 (-17. 5%) in an environment marked by a slowdown in global expansion and a drop in demand. in end markets and the continuation of economic and geopolitical uncertainties.
Contract sales were impacted by the reduction of stocks in the distribution chain due to the low value of aluminum following significant market distortion during the post-COVID market. Package sales were impacted by a decline in new architectural commissions in Europe from the second half of 2023 until the slow post-Covid recovery of commissioned activity in Asia.
The company has done everything possible to limit the effect of this slowdown by optimizing its variable costs. On the commercial side, the company has rationalized production on a limited number of lines at its Landen plant in Belgium and on its high-efficiency Line 6 in Germany.
In a challenging market environment, contract sales (€17. 4 million) fell by 15. 3% compared to 2022 and accounted for 79. 9% of 2023 annual revenue, compared to 77. 8% last year. Sales were affected by (i) the cyclical slowdown in demand resulting from the conservative expectations of steel suppliers due to the low price of aluminum on the LME, which bottomed out the year, which led them to keep their inventories at minimum levels, and (ii) the loss of percentage in the market due to the emergence of a competitor. in the uninterrupted European anodizing market. However, sales in the fourth quarter marked an inflection point, with sales almost flat compared to the same time last year.
Packaging profit (€4. 4 million), which includes pre-anodized steel supplied directly to the end customer, decreased by -25. 0% compared to the main comparator in 2022, an increase of 14. 8%. They accounted for 20. 1% of annual sales in 2023, up from 22. 2% last year. This growth is due to the slowdown in demand in Europe, especially in the second half of the year, after two years of dynamic expansion in 2021 and 2022 thanks to the delivery of giant orders. In 2023, to further contribute to the diversification of its sales, the company accelerated its advertising push in Asia. The slowdown in China’s economy does not appear to have had a major impact on major infrastructure projects.
COIL is maintaining a cautious approach for the first half of the 2024 financial year. The macroeconomic environment remains uncertain, and the persistent weakness in demand is likely to continue to weigh on the recovery in subcontracting volumes in the short term. Nevertheless, the flexibility of its industrial facilities will enable it to react quickly to an improvement in demand during the course of the year. In parallel, the Company is pursuing its diversification strategy by strengthening its geographical presence in mature and emerging markets through the development of its Package offers.
The company is confident in its long-term progression prospects and leverages its broad portfolio of premium and sustainable products with a reduced carbon footprint to boost its advertising potential.
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About the coil
COIL is the world leader in anodizing in the structural and commercial sectors and operates the ALOXIDE brand.
Anodizing is an electrochemical (electrolysis) process that develops a protective layer of herbal oxide on the surface of aluminum and can be colored in a variety of UV-resistant finishes. It provides steel with adequate corrosion resistance and/or complements its functional qualities. Anodizing retains all the natural and ecological properties of aluminum; It maintains its maximum rigidity and fair strength-to-weight ratio, non-magnetic properties and exceptional corrosion resistance. Steel remains fully recyclable through undeniable reflux. Anodized aluminum is used in a wide variety of industries and applications: architecture, design. , manufacturing and automotive.
COIL deploys a commercial style that it creates based on its unique know-how, its operational excellence, the quality of its investments and the experience of its people. COIL has around 110 employees in Belgium and Germany and generated a turnover of €21. 8 million in 2023.
Listed on Euronext Growth Paris | Isin: BE0160342011 | Reuters: ALCOI.PA | Bloomberg: ALCOI: FP
For more information, please visit www.aloxide.com
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1 anodized and metal included.