The world’s leading marine supplier of provisions and stores, Wrist came out of 2022 with a strong financial result despite highly volatile market conditions. The high level of investments in digitalization and expansion into new markets continued. Wrist has entered 2023 ready for further growth driven by its ambitious M&A strategy, focusing on industry digitalization and environmentally friendly solutions to support the green transition.
In 2022, Wrist managed to increase business volume, raising revenue and the underlying operating profit to record levels. Business volume arrived at DKK 5.4bn, up 21% from 2021, and operating profit (EBITA) landed at DKK 241m, compared to DKK 156m in 2021. The increase in revenue was based on a stronger value proposition, supported by a global footprint and margin uplift based on ever more efficient operations.
“During 2022, we pursued the innovation of new digital and integrated solutions to meet our customers’ need for efficient and resilient supply chains, and we acquired Centralam Panama at the Panama Canal,” says Jens Holger Nielsen, Group CEO of Wrist. In acquiring Centralam Panama, Wrist has expanded its global reach and secured a foothold at one of the world’s most important maritime crossroads. With the development of new digital services, Wrist offers strong data insights into customers’ supply chains and ordering and maintenance processes. Several pilot customers confirmed the great potential of the digital marketplace, Source2Sea, and the first customer specific product catalogs were introduced in 2022.
Wrist generated revenue of DKK 5.4bn, up 21% from 2021. Gross profit increased to DKK 1,510m from DKK 1,198m in 2021, resulting in a gross profit increase of 26%. The increase was mainly driven by improved sales volume, inflationary impact on commodity prices, exchange rate fluctuations, sourcing benefits, and several efficiency initiatives. Operating profit (EBITA) was DKK 241m, compared to DKK 156m in the previous year. EBITA includes expenses for transformational excellence programs, digitalization, and acquisitions. A like‐for‐like comparison of EBITA for 2021 and 2022 revealed an increase of 54.9% or DKK 85m, as the result of increased sales volume and the recent years of transformation programs within commercial and operational excellence. The Group’s equity stood at DKK 1,066m at the end of 2022, up DKK 134m compared to 2021.
With the intent to strategically leverage the organization to ensure customer centricity, Wrist reinforced its executive management, appointing Peder Winther, CEO Ship Supply, reporting to Group CEO Jens Holger Nielsen. Investments continued in the strategic development of Procurement, Sales, Data/IT and Operations, to meet customer demands for cost‐efficient, sustainable, and streamlined purchasing and operational processes.
“We want to make sure we have the ability to help our customers navigate new potential disruptions and complex conditions in the years to come,” says Jens Holger Nielsen. The high level of investment in digitalization, acquisitions, sustainable solutions, and people development, as formulated in the new Group strategy, CONNECT 2027, is expected to lead to continued expansion and growth over the coming years. Looking into 2023, Anders Skipper, Group CFO, says: “We are moving into macroeconomically uncertain waters, but we have a strong market position and therefore expect total sales to grow organically to around DKK 5.7bn and an increase in operating profit (EBITA) to DKK 300m‐320m.”
In 2023, Wrist is accelerating the sustainable transition, launching a new ESG strategy and 5‐year roadmap. “With innovative partnerships with selected customers and technology partners, we can develop sustainable solutions that will positively impact our customers’ businesses and the maritime eco‐systems,” says Jens Holger Nielsen.
Source: Hellenic Shipping News
