Michelin's revenue and market capitalization

  •   DEHOUI Lionel

After a difficult year in 2020, the Michelin Group returned to a fairly normal level of activity in 2021. The conditions were certainly difficult, but the results for 2021 are satisfactory compared to those of 2020. Better still, for 2022, a positive year is announced despite the disruptions. Find out in the following lines the key figures to remember about the group's financial performance for the year 2021.

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Michelin's revenue and market capitalization
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Turnover growth in 2021

For the full twelve months of 2021, the Michelin Group generated sales of €23.8 billion compared to €20.47 billion in the previous year. This represents an increase of 16.3% over the previous year. With this turnover, the manufacturer was able to generate a net profit of 1.8 billion euros and an operating margin of 12.5%.

The turnover recorded for the first half of 2021 is 11.19 billion euros. 11.19 billion, an increase of 18.82% compared to the previous year. In 2020, Michelin achieved sales of EUR 9.35 billion in H1. In the second half of 2021, the group achieved sales of €12.6 billion compared to €11.11 billion in the same period in 2020. There was therefore an increase of 13.41%.

Despite this positive operating margin, it must be acknowledged that Michelin is facing numerous problems in logistics, recruitment and supply. There was also an increase in the cost of raw materials and energy during the year. This caused approximately €1.2 billion of additional costs in the manufacturer's production chain. However, the Clermont-Ferrand-based group was able to offset these additional expenses. It relied in particular on price management, an enriched product mix and more stringent productivity efforts.

 

Performance of other key indicators in 2021

Sales by sector increased by 11.8% in the 2021 financial year. Prices increased by 4.5%.

In detail, the passenger and light truck tyre sales segment increased by 2% for the full year. The first half of 2021 was more dynamic for this sector with a 28% increase in sales. The second half of the year, however, was marked by a shortage of semiconductors. As a result, there was a 17% drop in sales for this period. Sales in the replacement tyre sector increased by 11%.

In terms of sales by region, there was a 16% increase in sales in Africa, India and the Middle East in 2021. Sales in South America increased by 12%. In Europe, on the other hand, sales recorded by the Michelin Group fell by 5%.

 

Financial structure at the end of 2021

Thanks to the more or less satisfactory results recorded by the firm in 2021, it continued to reduce its debt. Michelin paid off EUR 742 million of debt in 2021. This brings its total debt to less than EUR 2.8 billion.

In 2021, the group installed photovoltaic panels on several sites. The company has also invested in the purchase of guaranteed renewable electricity. These actions have increased its share of renewable energy from 13% in 2019 to 18% in 2021. With a total of 29% in 2021, the proportion of sustainable materials in tyres has increased by 1%. The group's objective is to reach 40% by 2030.

Until the end of 2021, Michelin's 'passenger van' market remained very disturbed. For 2022, the manufacturer anticipates an increase of between 0 and 4 % in this sales sector. In the truck market, an increase of between 1 and 4 % is expected. The speciality market will see an increase of 6 to 10% according to the group's forecasts.

For the first quarter of 2022, the group's financial result shows a turnover of 6.48 billion euros. This is an increase of 19.11% compared to the previous year. In fact, the firm's turnover in the first half of 2021 is EUR 5.44 billion. For 2022, Michelin's vision is to achieve an operating profit of more than EUR 3.2 billion. For the following year (2023), the manufacturer is aiming for an operating profit of 3.5 billion.

 

Dividend and market capitalisation of Michelin in 2021

Generally, the French group Michelin distributes the dividend in one annual payment. At the Annual General Meeting of Shareholders held on 13 May 2022, the company's Board of Directors proposed to pay a dividend of 4.50 euros per share for the financial year 2021. This dividend is almost double the one distributed by the group the previous year. The previous year's dividend was EUR 2.30 per share.

In addition, the Michelin Group is active in the equity markets. The company is listed on the Paris stock exchange on the Euronext market. It is also included in the French CAC 40 stock market index. In 2020, its market capitalization was estimated at 24,068 billion euros.

 

About the Michelin Group

Founded in 1889 and headquartered in Clermont-Ferrand, France, Michelin is a French company specialising in the manufacture and marketing of tyres for the automotive and aviation industries. It is recognised as the world leader in this sector. It is also the tyre brand that is most popular with European consumers.

In addition, the group offers a wide range of products for all types of cars. These include: cars, civil engineering and agricultural machinery, two-wheelers and trucks and others. In addition, the company has a strong global reputation. It has a strong industrial presence in more than 16 countries. Also, the company has a workforce of 124,760 employees worldwide at the end of the financial year 2021. However, it is announced that 2,300 jobs will be lost by 2023. This is in line with the group's simplification and competitiveness plans.

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