In 2021, the Group achieved an excellent year across all performance criteria, in spite of the ongoing pandemic and the strong inflationary pressures mainly related to the sharp increase in energy prices in the second half.
Air Liquide’s teams have stepped up in all areas, whether in response to the covid-19 crisis, the significant acceleration in inflation or the energy transition challenge, once again demonstrating their strong reactivity and adaptability. The Group has taken action in the here and now, while at the same time preparing the future. The investment momentum has been sustained, with the signature of numerous agreements in particular related to the energy transition.
The Group has delivered another year of profitable growth: Sales reached 23.3 billion euros, up +8.2% on a comparable basis, the operating margin increased by 70 basis points excluding the energy impact, and recurring net profit (1) rose 13.3% at constant exchange rates.
All activities improved markedly: Gas & Services, which represents 95% of Group revenue, Engineering & Construction, as well as Global Markets & Technologies. All Gas & Services business lines and regions grew to high levels, with Asia growing by +6%, Europe by +7% and the Americas by +8%.
The Group further improved its operating margin thanks to an inflation-adapted pricing policy, significant efficiencies of 430 million euros and a dynamic management of its business portfolio. Faced with a sharp and sustained rise in energy prices, the Group has demonstrated both the strength of its business model – which allows it to automatically pass on these variations to its Large Industries customers – and its ability to rapidly adapt its pricing for Industrial Merchant customers.
Air Liquide’s balance sheet has been further strengthened. Recurring ROCE reached 9.3%, approaching the 2023–2024 target of more than 10%. Cash flow from operations remained high at 24.5% of sales, excluding the energy impact, and helped reduce debt while also financing our capital expenditures and the dividend. Investment decisions reached 3.6 billion euros for the year, and opportunities remained high at 3.3 billion euros, of which more than 40% are related to the energy transition. The dividend, which will be submitted to the Shareholders’ vote in May, is proposed at 2.90 euros per share, which represents an increase of +5.5% that reflects our confidence in the future. Moreover, a free shares attribution will take place in June 2022.
With a business model that combines financial and extra-financial performance, Air Liquide is particularly well positioned in the markets of the future. In response, notably to the major challenges of climate change and the energy transition, the Group offers a wide range of solutions based on hydrogen and technologies to decarbonize industry. Contributing to a sustainable future is at the heart of our activity and of our strategy.
In 2022, assuming no significant economic disruption, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit (2) growth at constant exchange rates.
(1) Excluding exceptional and significant transactions that have no impact on the operating income recurring.
(2) Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant items that have no impact on the operating income recurring, and excluding the impact of any US tax reform in 2022.
