Business Description

GEA Group AG engages in the development, manufacture, and production of process technology components as well as components for food processing and a range of other industries. GEA Group AG is involved in the development, manufacturing, and production process technology components and components for food processing, among other industries.

Key Financials

Revenue (US$ Mn)

• US$ 4,955 Mn was the annual revenue generated by GEA Group AG in 2021
• GEA Group AG’s annual revenue for 2020 was US$ 4,635 Mn, a -5.02% decrease from 2019
• From 2018’s annual revenues, GEA Group AG registered a 1.08% increase in 2019, amounting to US$ 4,880 Mn
• Total revenue of US$ 4,828 Mn was generated in 2018 by GEA Group AG

Operating Income(US$ Mn)

• GEA Group AG’s operating income for 2021 was US$ 400 Mn, an 80.83% increase from 2020
• The operating income generated by GEA Group AG in 2020 was US$ 221 Mn
• At a -141.99% decrease, GEA Group AG’s operating income of US$ -109 Mn was indexed in 2019
• GEA Group AG generated an operating income of US$ 260 Mn in 2018

Net Income(US$ Mn)

• GEA Group AG’s net income for 2021 was US$ 90 Mn, a -7.22% decrease from 2020
• The net income generated by GEA Group AG in 2020 was US$ 97 Mn
• At a -251.33% decrease from, GEA Group AG’s net income of US$ -171 Mn was indexed in 2019
• GEA Group AG generated a net income of US$ 113 Mn in 2018

Operating Margin %

• 8% was the operating margin generated by GEA Group AG in 2021
• GEA Group AG’s operating margin for 2020 was 5%, a -318.18% decrease from 2019
• From 2018’s operating margins, GEA Group AG registered a -140.74% decrease in 2019, amounting to -2%
• An operating margin of 5% was generated in 2018 by GEA Group AG

Gross Margin %

• GEA Group AG’s gross margin for 2021 was 2%, a -10% decrease from 2020
• The gross margin generated by GEA Group AG in 2020 was 2%
• At a 52.17% increase from, GEA Group AG’s gross margin of 4% was indexed in 2019
• GEA Group AG generated a gross margin of 2% in 2018

SWOT Analysis

Strengths

Robust research and development activities lead to new product development

Through its robust research and development (R&D) capabilities, the group enhanced its own processes and technologies over the years. In addition to pursuing its own intensive R&D activities, the group encourages cooperative research projects with its customers and suppliers. At GEA, R&D activities are conducted locally by the individual segments and business units. This also facilitates direct cooperation with customers. The potential drawbacks of a decentralized R&D structure are avoided by ensuring cooperation between individual segments and the global exchange of knowledge throughout the group.

A key R&D area of GEA is to add value to the by-products of the agricultural and fish as well as meat processing industries. As of December 31, 2020, the company had 1,000 patent families with 5,100 individual patents and recorded 53 new patent filed applications. In FY2020, the company incurred an R&D expense of EUR129 million, which as a percentage of revenue, stood at 2.8%. Robust R&D capabilities help the group to develop innovative products and technologies which help to provide better service to its customers thus enhancing the brand image in the marketplace. This could also increase the competitive advantage of GEA over its peers.

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