In the shadow of Russia's invasion of a European country, Ukraine, and the anxiety the war is creating in large parts of the world, VIKING Life-Saving Equipment A/S presents an annual report for 2021 that is in no way marked by the crisis. However, as an international company, VIKING is affected both humanly and commercially by the violent events in the nation in the immediate area.
"First of all, we would like to express our deep concern about the human aspects of Russia's actions in Ukraine, and we are closely following the geopolitical crisis and the resulting suffering for the population," says VIKING CEO, Henrik Uhd Christensen.
VIKING delivers a record result in 2021
VIKING is back in dazzling form and delivering a record result in 2021
After a controlled dip in revenue and earnings in the first year of the COVID-19 pandemic, VIKING is back in dazzling form and delivering a record result in 2021.
Net revenue of DKK 2.7 billion was slightly below the record year of 2019, but the profit before tax of DKK 277 million clearly exceeds the earnings of DKK 205 million in the same year. The group's result for 2021 is significantly above expectations, driven by an unexpectedly strong second half.
Cost savings
"Our bottom line is at a historically high level, and it is driven by two factors. Overall, we have had good product sales, but in the service area there has been growth in all service areas, where both traditional and purchased services have had a high level of activity. The second reason is cost savings, which we cannot expect to fully maintain in 2022, as there will be a backlog in terms of travel and participation in trade fairs and exhibitions all over the world," says VIKING CEO, Henrik Uhd Christensen.
Asynchrony characterizes the market
The VIKING boss describes the development in the three main segments, cargo ships, passenger ships and offshore vessels as asynchronous, as there are both conditions that negatively affect the market and trends whose effect is the opposite.
An example is the hard-hit cruise industry, which is still characterized by struggling shipping companies and abandoned ships, but also by an ambition to have the fleet ready for when times improve. This has resulted in high service activity at VIKING.
Henrik Uhd Christensen continues, "Within the cargo area, there is high activity in everything that can carry a container, whereas tankers have had a tough year. The offshore industry is benefiting from a high oil price, but the major growth engine, exploration activities, is far from the same extent as before. The large fluctuations within the individual market segments affect our business differently, but predominantly in a positive direction."
Customers buy the whole package
The increased sales of rescue equipment are particularly distributed among rafts, lifeboats
The increased sales of rescue equipment are particularly distributed among rafts, lifeboats and life and protective suits (PPE), where sales of fire suits in particular stand out.
The same goes for fire extinguishing systems for container fires on container ships, HydroPen, which since the acquisition in 2021 has further contributed to positioning VIKING as the ultimate one-stop shop for maritime safety solutions.
VIKING - one-stop shop for maritime safety solutions
Henrik Uhd Christensen said, "In both product sales and service, we are experiencing increased interest in the complete packages we offer. When we sell a product, for example lifeboats, the other product areas increasingly follow suit."
He adds, "The same applies within service, where customers often enter into service agreements that cover all safety products on board the ships. The most recently acquired competencies within, among other things, firefighting equipment are accelerating this development."
The green agenda is moving forward
The new multi-year business plan, BP25, has been delayed due to the uncertainty arising from the COVID-19 pandemic, but is expected to be completed in 2022, ensuring that long-term goals are firmly in place.
BP25 will be marked by an intensified commitment to the global green agenda
In addition to the top- and bottom-line growth that the latest financial year has reinforced, BP25 will be marked by an intensified commitment to the global green agenda. The goal is to be the industry leader in sustainability and achieve carbon neutrality by 2030.
Green agenda - an expansion of CSR
Henrik Uhd Christensen stated, "We see the green agenda as an expansion of the social responsibility (CSR) we have undertaken for many years. The human dimension has always played a large role in our company, where we, with value-based management, are strongly committed to offering safe and healthy workplaces. This also applies in a completely unusual period like this, when the number of employees affected by corona has been high and has triggered operational disruptions."
He adds, "Restrictions, working from home and the absence of colleagues have challenged our way of working, and the employees deserve great recognition for their committed and solution-oriented approach to getting through the health crisis well."
The high activity will continue
At the end of the financial year, VIKING had equity of DKK 1.23 billion, corresponding to an equity ratio of 48.3 percent. The balance sheet with cash flow, inventory management and debtor management also shows key figures at the absolute high end.
Management expects the group to achieve a similarly high level of activity in 2022 and a result in line with the record of the past financial year. The expectations are associated with greater uncertainty than usual due to the geopolitical unrest in the world.
