While we were recovering from the corona pandemic, 2022 provided new challenges because of Russia’s unprecedented acts of aggression against Ukraine and the uncertainties that followed. Consequently, ROTO immediately decided to stop its business with Russia and support refugees in Niepolomice, Poland, where Staco Polska is located. Afterwards, we had to cope with the effects of unstable prices and supplies of raw materials, vastly increasing energy costs, increases in personnel costs and inflation in general. Although this influenced volumes and margins, 2022 was overall an excellent year. All our Business Units contributed to the results and produced a consolidated result after tax of € 17.1 million (2021: € 11.7 million).

Revenue and result

Revenue increased in 2022 by 41.7% to € 276.8 million (2021: € 195.3 million), largely attributable to the consolidation of Prestia for the full year (compared to only three months in 2021) and a still high average zinc price, resulting in a substantial higher revenue for Rezinal. Increased sales prices provided additional revenue for our Business Units Staco, De Boer Staal and Rotocoat.

All Business Units contributed to the operating result of € 31.9 million (2021: € 20.6 million) in which the increased costs for procurement and direct personnel have already been absorbed. Better operating results leading to higher taxes of € 8.3 million (2021: € 4.5 million) and the effect on the non-controlling interest of € 6.0 million (2021: € 4.0 million) explain the difference between operating result and net profit after tax.

As in 2021, ROTO benefited from rising steel and zinc prices in 2022, but the potential risk of backlogging volumes and prices immediately increased. Aligning available stocks with production planning and sales forecasts mitigates potential risks. Agility in adapting our prices is challenging for our sales teams and has management’s full attention.