Even though demand for voestalpine’s products rose significantly over the business year 2020/21, the Group’s revenue fell by 11.4% to EUR 11.3 billion on account of economic factors. Similarly to the development of revenue, voestalpine also saw a marked upturn in earnings throughout the subsequent quarters. Given the COVID-19 crisis, the decline in EBITDA by 4% to EUR 1.1 billion was moderate. At EUR 115 million, the Group succeeded once again in posting positive EBIT (2019/20: EUR –89 million). As previously communicated, in the business year 2020/21 (mainly its second quarter) EBIT was impacted by impairment losses of EUR 197 million largely attributable to two companies (voestalpine Texas and voestalpine Tubulars).
Cash flows were extremely positive. The Group succeeded in substantially boosting its cash flow from operating activities to EUR 1.6 billion during the business year ended—especially because it reduced working capital by EUR 633 million. This underscores the voestalpine Group’s strong ability to fund itself even in a difficult market environment.
Following EUR –230 million in the previous business year, profit before tax for the business year 2020/21 is EUR 11 million and thus slightly positive yet again. At EUR 32 million, the voestalpine Group also succeeded in boosting its after-tax profit (2019/20: EUR –216 million).
The gearing ratio (net financial debt as a percentage of equity) improved year over year, from 67.2% to 48.5% as of the end of March 2021. Consistent working capital management and low investment levels enabled voestalpine to significantly reduce its net financial debt in the business year 2020/21 to EUR 2.7 billion, down from EUR 3.8 billion a year earlier. This was the lowest level since the business year 2014/15. At EUR 5.6 billion, equity as of March 31, 2021, was stable year over year (March 31, 2020: EUR 5.6 billion).
As of March 31, 2021, the voestalpine Group had about 48,700 employees (FTE) worldwide, which equates to a year-over-year reduction by 2.1% (1,028 FTE).