Esautomotion approves the 2020 consolidated financial statements
On March 30, 2021, the Esautomotion board met to approve the company’s official financial statements for 2020.
In a year complicated by the global crisis triggered by Covid-19, Esautomotion’s performance was positive: revenues showed substantial stability, thanks to the growth in the number of CNC systems sold, a careful internal cost review and a series of measures aimed at simplifying company procedures and processes, they have optimized internal efficiency and profitability.
2020: an articulated and inhomogeneous scenario
“2020 was a very special year, with a two-speed market trend” – comments Andrea Senzolo, World Sales Manager – “Europe suffered the most from the economic crisis, from which it began to recover only towards the end of 2020. On the other hand, the Asian markets reacted earlier and restarted in the second quarter with significant growth rates, from which our sales benefited greatly. The strategic choices of recent years, which have aimed at greater penetration in the Chinese market and in more resilient ones such as Turkey, the link between Europe and Asia, have proved to be correct. In China we have become approved suppliers of large Chinese customers by entering the production chain serving companies such as Tesla, BMW, CRCC (the largest train manufacturer in the world). This introduction is already turning into significant sales volumes that will last a long time ”.
Favorable prospects for 2021.
Esautomotion’s management declared that they positively see the evolution of the company in 2021, both in terms of sales volumes and profitability and cash flow. The signs of a global recovery of the economies are all there: in the fourth quarter of 2020 there was an increase in the acquisition of orders of 40% compared to the same period of 2019 and the trend is continuing in 2021.
“In addition to the consolidation of the positive situation in the eastern markets, we expect a strong restart of the European and American economy in 2021” – adds Franco Fontana, president of Esautomotion – “We are witnessing the revision of the procurement strategies of large European and US manufacturing companies . The westward shift of the supply chain center of gravity from China and the Far East could become the watchword, because the decision to relocate to the other side of the world emerged in all its risk during the pandemic. The fear is that the closure of countries could be repeated in the future: proximity, understood as the safety and efficiency of supplies, will once again become a strategic factor. Added to this is the maxi-investment plan launched by the new American administration, which should lead to a boom in the US economy, with positive repercussions also in Europe: in both cases we have an important presence in our commercial network and therefore we will be able to take advantage of this opportunity. “.
“We are an internationalized company, with a presence in all leading economies: the Group’s” direct “export level is 54% and, if we add to this value the part of products sold in Italy and then exported by machine manufacturers our customers, the real export value reaches about 80% of revenues “- underlines Gianni Senzolo, CEO of the Emilian company -” This means splitting risks and the possibility of seizing opportunities even in the event of divergent trends ”
Technological research as a strategic lever for growth.
R&D remains the Group’s largest investment area: in the last three years (2018 – 2020) about 6.4% of turnover was invested in research. The effects of this policy are positively felt in internationalization and penetration into new strategic product segments.
The development of integrated software and devices continued according to the principles of Industry 4.0, and the consolidation of product performance in new application sectors.
During 2021, new product lines will be launched, with the official worldwide presentation of the VIS800 CNCs, to which will be added the upgrade of motors and cutting heads. The marketing of a safety controller for press brakes, developed in collaboration with the world leader Lazer Safe, will begin in India, China and Turkey. A series of very user-friendly devices and apps will also be presented to simplify the control of the machines by the operator.
Tensions on the supply of components and raw materials
Such a strong and concentrated increase in demand worldwide over time is causing not a few disturbances in terms of the availability of components and prices.
However, the management of Esautomotion has declared that this will not affect the development plans thanks to a series of countermeasures and agreements with suppliers already activated since the end of 2020 and further strengthened in the first quarter of 2021.