STACO RESULTS REMAIN STABLE

In 2021, sales in the strategic Create & Inspire services like façade applications, remained stable with positive margin developments in all sales markets. Staco’s operational margin increased by 13.4%, with the increase in the steel price having a significant negative effect on production costs.

In Poland the market for standard gratings was dominated by low prices and short delivery times in 2021. The export to Russia* remained difficult due to price competition and COVID-19 circumstances.

Activities in the Dutch building and construction market showed growth in the first half year of 2021 but slowed down in the second half of the year due to price competition. The sales market in Belgium was stable in 2021. Competition came mainly from competitors with short lead times and low prices. In Germany there is more price competition for all types of gratings. The UK market showed a recovery from COVID-19 and Brexit in 2021, but supply shortages and high transport costs remain a problem.

PRESTIA CONSOLIDATED MARKET SHARE

In 2021, Prestia consolidated its market share in galvanising in France. The decision not to follow the low-price strategy of their main competitors was successful. However, the results in their two main markets were completely different. Prestia performed better in Brittany, but decisive action was taken to improve results in Normandy.

At the end of 2021, Prestia had to adjust its prices to take into account higher zinc prices. To strengthen its position and keep an edge over its competitors, Prestia is working on a new strategic plan for the next five to eight years.

*At the time of publication of this report, all direct business with Russia has ceased due to the war in Ukraine.