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Bett 2023 the best yet? Page 21
Page 22 The organisers of Bett 2023 believe that this year’s show will be the best yet. Here’s why!
Martijn Vanderwoude, VP, Global Marketing & Business Development for Philips Professional Displays at PPDS,
32% top line growth in Barco year end PMA shows supply-chain issues beginning to level off
In a more than positive year end reported by Barco. The company enjoyed both strong sales and order growth across all of its divisions. Order intake for 2022 was 1,058.4 million euro, 8% more than in 2021. This result was driven by a solid recovery of demand across all divisions: sales for the year increased 32% to 1,058.3 million euro, close to the pre-pandemic level in 2019. Excluding China, all regions posted sales back at the levels of 2019. “We expect the Chinese activity to pick up from the second quarter of 2023 onwards.” Year-over-year, all divisions delivered double-digit sales growth. The steady improvement in the supply chain over the second half of 2022 allowed for faster delivery of the existing orderbook, which was still at a record-high year-end position. The order book at the end of December 2022 stood at 496.5 million euro, which is more than 50% above the level at year-end 2019. In Healthcare, order intake remained strong throughout 2022. This reflects the resumption of demand in both the Diagnostic Imaging and Surgical & Modality market segments, in all regions, including China. The Diagnostic Imaging business unit benefited from further customer investments in replacement displays for radiology and from the resumption of mammography display sales which have been softer during the pandemic. The Surgical & Modality business unit generated particularly strong growth in the Americas and in China, driven by large modality projects and digital operating rooms. Enterprise saw continued recovery from the pandemic with significant sales growth in both segments. Meeting Experience sales accelerated in all regions, starting in EMEA, followed by Americas and Asia. This growth
was supported by the return-to-the-office wave, the increasing trend towards videoenabled hybrid meetings and the growing recognition of ClickShare’s Bring Your Own Meeting value proposition. Large Video Walls realized double-digit sales growth in all regions, fuelled by deployments of control rooms. The Entertainment division produced encouraging results in 2022. During the first half of the year, the division dealt with component shortages. From mid-year onwards, the situation improved steadily, allowing for a ramp up of deliveries on the high order book. While 2022 Cinema sales have not yet returned to pre-pandemic levels, Cinema ended the year with an order book that was twice as high as year-end 2019. For Cinema, solid demand for Barco’s alllaser portfolio led to growth in all regions except Asia, where the lockdowns in China impacted the business. The Immersive Experience top line reached an all-time high, with a particularly strong uptake in the fixed install business that reflected greater demand from museums, projection mapping and theme parks.
Barco’s year end reported significant EBITDA margin improvement. The gross profit margin improved quarter-overquarter throughout 2022 to an average level of 39.0%, up 3.3 ppts year-over-year. This rebound in gross profit margin back nearly to 2019 is attributable to gross profit actions, a more favourable product mix most outspoken in the Enterprise division and a less constrained supply chain during the second half of the year. The EBITDA margin reached 12.0% for the full year, up 4.7 ppts versus last year. Both gross margin recovery and operating leverage on the top line growth contributed to this result. As the supply chain constraints were largely resolved, the EBITDA margin jumped from 9.8% in the first half of the year to 13.7% in the second half, reconnecting with the 2019 level. Each of the business units contributed positively to the EBTIDA margin except Large Video Walls where the profitability keeps lagging. Management intends to conduct a strategic review of this business unit in 2023, focusing on profitable products and markets.
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PMA Research (PMA) has published its latest half-yearly All-Displays sell-through tracking report on professional large-format flat panel displays (55” and larger) and professional projectors (above 500 lumens) being sold by leading U.S. Distributors who serve commercial markets. Supply issues resolved for much of the flat panel market by mid-2022. Inventory for FPDs grew in the second half of the year with demand much softer compared to earlier in the year. Projector manufacturers delivered in large volumes in the third quarter with many backlogged orders filled by the end of the year.
However, certain projector segments remained in tight supply throughout the year. Manufacturers delivered against significant order backlog in the third and fourth quarter, but spot shortages remained throughout. Meanwhile, orders for flat panel displays softened as pentup demand was met earlier in the year and concerns about inflation tempered corporate spending. Lower fourth quarter sales impacted total revenues for the second half of the year. However, supply constraints resulted in projector prices rising through the second half of 2022 so revenues were stronger. This was true,
even though in the fourth quarter of 2022 much of the projector production was earmarked for consumer projector models to meet holiday demand, limiting revenues for certain B2B models. PMA Research (PMA) has published its latest half-yearly All-Displays sellthrough tracking report on professional large-format flat panel displays (55” and larger) and professional projectors (above 500 lumens) being sold by leading U.S. Distributors who serve commercial markets.