Revenue increased by 15% to EUR 113.2 million compared with EUR 98.6 million in Q3 2020
Growth driven by all three Business Groups; Industrial revenue exceeds pre-COVID levels
Impact of semiconductor shortages, supply chain constraints, demand volatility and increasing raw material prices managed effectively
Normalized Q3 EBITDA increase of 9% to EUR 12.4 million (Q3 2020: 11.4 million)
Normalized Q3 EBITA of EUR 6.5 million, 30% higher than Q3 2020
Further expansion of Industrial business through the acquisition of 3T; integration on track
Normalized net profit before amortization over the first nine months of EUR 16.5 million, 88% higher than the same period in 2020 (EUR 8.8 million)

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Joep van Beurden, Kendrion CEO:
“We continued to deliver significant growth in revenue across all segments in Q3 and during the first nine months of 2021 in a volatile market. We are observing higher activity levels across our markets as the economy recovers. At the same time, we are dealing with the impact of semiconductor shortages on the demand of our Automotive customers. In addition, we are facing other supply chain constraints and upward pressure on raw material prices. I am proud of our global team for managing the impact of these challenges so well.

Our Industrial businesses continued their strong performance of the first half year into Q3, with organic revenues exceeding Q3 2019 levels in both Industrial Actuators and Controls, and Industrial Brakes. Higher raw material prices somewhat reduced the Industrial added value margin. We expect this effect to be temporary as our own price increases are kicking in. Short-term demand looks healthy and in the longer-term we expect our Industrial businesses to continue to benefit from the global energy transition towards electrification.

In the Automotive segment, demand is volatile due to the severe and ongoing semiconductor shortage. The shortage reduces the production in the sector significantly, putting pressure on our Automotive revenue. We expect this situation to continue in Q4 and at least until the first half of 2022. Longer-term, we remain well-positioned to benefit from the accelerated Autonomous, Connected, Electric and Shared mobility (ACES) transition.

On 21 September, we announced the acquisition of the Dutch electronics and embedded systems developer 3T. This acquisition offers significant growth potential for our Industrial business in combination with the control technology activities of our Business Group Industrial Actuators and Controls. 3T also strengthens our software and electronics development capabilities, which will benefit our Automotive Group, more specifically the development of our sensor cleaning and sound actuation platforms. Integration has started and 3T has already positively impacted our profitability.

Looking ahead, we expect that both the semiconductor shortage and broader disruption in the supply chain will continue. With our well-balanced product portfolio, global exposure, and strong strategic position in both Industrial and Automotive, we are well positioned to manage the impact of these challenges. Longer-term, we believe that the accelerated transition towards clean energy will benefit our three growth areas; Industrial Brakes as it boosts demand for wind power, robotics, and various other segments; Automotive, where we focus on ACES; and China

We are confident that the global push for clean energy, combined with our strong position in our growth areas Industrial Brakes, Automotive and China, will help us achieve our medium-term financial targets of 5% organic growth between 2019 and 2025, an EBITDA of at least 15% in 2025, and an ROIC of at least 25% in 2025."

Please find the full press release attached.

211102 Kendrion N.V. press release - Kendrion continues revenue and profitability growth in a volatile market environment.pdf
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