The group achieved a 5% increase in orders in 2021, thanks to reduced COVID-19 pandemic disruption and improved site access compared to 2020. Service order intake increased by 14%, whereas capital orders decreased by 7%. Including currency effects, order intake was valued at DKK 19.233bn (€2.583bn).
Commenting on the trading results, FLSmidth Group CEO Mikko Keto, who replaced Thomas Schulz on 1 January 2022, said: "FLSmidth delivered a solid performance in 2021. Despite the challenges presented by the pandemic and the global supply chain constraints, order intake, revenue and EBITA increased substantially over 2020, and cash flow performance was strong.
"Key drivers behind the 2021 performance are continued good momentum in Mining and improvements in our Cement business. Further, we have announced one of the biggest acquisitions in our history, namely the acquisition of thyssenkrupp's Mining business. This will position FLSmidth as one of the strongest suppliers to the mining industry with complete pit-to-plant flowsheet solutions driving sustainable productivity."
By leveraging its flexible supply chain coupled with easing pandemic restrictions during the second half of 2021, FLSmidth's full-year 2021 organic revenue increased by 8%.
Gross profit increased by 8%, and EBITA increased by 34% due to higher revenue and operating leverage. The EBITA margin improved to 5.9%, with improvements in both Mining and Cement. Adjusted for the costs related to the acquisition of thyssenkrupp's Mining business, the EBITA margin was 6.5%.
FLSmidth secured six large orders in 2021 and a book-to-bill of 109% for the year. Cash remains a core focus for the group, and with a net working capital ratio of 6% at 2021 end, it delivered a cash flow from operating activities of DKK 1.4bn (€188mn) in 2021.
In Q4 2021, FLSmidth's group order intake increased by 8% to DKK 5.084bn (€682.96mn), the highest fourth-quarter level in several years. The growth in order intake was entirely driven by Mining, which increased by 35% organically and represented 71% of total order intake. Group service orders increased 20%, driven by the positive sentiment in the mining industry.
Group revenue increased 19% organically, attributable to both Mining and Cement and both capital and service business. Including currency effects, revenue increased by 21% to DKK 5,135bn. Group EBITA increased by 44% compared to Q4 2020. Gross profit increased as a result of the higher level of revenue. However, gross margin declined due to an increased share of capital revenue.
FLSmidth's Q4 2021 and full-year 2021 results include costs related to the thyssenkrupp Mining business acquisition of DKK 37mn and DKK 107mn, respectively. Subject to regulatory approval, the transaction's closing is still expected in the second half of 2022.
Looking ahead to full-year 2022 trading prospects, Mikko Keto said: "Beyond managing our two businesses, which each pursue a strategy and cost structure most appropriate to their market environment, we are deeply committed to ensuring a smooth integration of thyssenkrupp's Mining business into FLSmidth and building an even stronger brand for the green future. In addition, we will focus on driving operational excellence to deliver improved financial performance."
