Financial performance

Net income doubled in 2021 to €979 million (2020: €488 million) with bottom-line growth driven by successful exits at NPM Capital (including deals delayed in 2020 due to the pandemic); a stronger oil and gas market that boosted results for both SHV Energy and ONE-Dyas; a recovery in sales for Mammoet and ERIKS; and stricter cost controls across all Groups.

Overall operational performance in 2021 showed a growth in both sales and net income. SHV Energy benefited from the fast recovery in the oil and gas market, a well-positioned hedge portfolio, and active cost management. Mammoet and ERIKS also profited from post-lockdown recoveries and made good progress with their strategic agendas, including tighter cost controls and enhanced operational efficiency. Nutreco managed to record higher volumes, although margins were squeezed by stretched supply chains and rising raw material costs. The negative outcome of a tax case in Spain also impacted net income. Makro continued to feel the effects of COVID-19 restrictions as well as intensifying competition in the market, with 2021 sales lower than expected. The sale of stores in Brazil, however, made a positive contribution to net income. NPM Capital took advantage of high valuations in the market to make a number of successful exits. And finally, the acquisition of Kiwa delivered additional growth in sales on the back of a positive operational performance trend - especially in the European markets.

The 2021 effective tax rate remained stable at 21.4%. The effective income tax impact for this year mainly relates to higher non-taxable capital gains and dividends realised by NPM Capital, offset by non-recoverable withholding tax charges and higher taxes on income from investments in affiliates related to the result of ONE-Dyas.

Operational cash flow remained stable at €1,060 million (2020: €1,063 million). Investment cash flow grew to €1,292 million (2020: €701 million) thanks to acquisitions and an increase in replacement investments, following a more conservative 2020. After reducing working capital in 2020 to preserve cash, 2021 saw an increase of €323 million driven mostly by higher receivables from SHV Energy and Mammoet, an increase in inventories at SHV Energy, and the inclusion of Kiwa.

A total of €762 million was invested in tangible fixed assets during 2021, channelled mainly into gas cylinders & tanks, and installations at SHV Energy as well as product lines and equipment at Nutreco and Mammoet. The Groups also made several investments to accelerate growth and strengthen market positions. These include, amongst others SunSource Energy and United Propane at SHV Energy; Bigsal and Nutrimin at Nutreco and Intega at Kiwa. NPM Capital invested in Infinitas Learning, an educational publishing company; ICT Group, an industrial technology and service provider; and Kubo, specialised in greenhouse projects.