In 2021, Wrist further consolidated its position and increased operating profit as the supplier of marine provisions, stores, and spare parts logistics to the ship and offshore industry not least through a strategic transition and substantial investments in the development of customised digital solutions.
Increasing business and revenue
Wrist succeeded in increasing business volume and revenue, improving the underlying operating profit.
Several major, global customer frame agreements were expanded and landed despite the turbulent market development, characterised by food and steel price inflation, global supply chain challenges, and historically high ocean freight rates, all leading to general cost increases and volatility.
Global expansion
In acquiring Centralam Panama, Wrist has expanded its global reach
“During 2021, we continued to explore new opportunities for growth and acquisitions, and in February 2022, we concluded the acquisition of Centralam Panama, a key ship chandler based at the Panama Canal,” says Jens Holger Nielsen, Group CEO of Wrist Group.
In acquiring Centralam Panama, Wrist has expanded its global reach and secured a foothold at one of the world’s most important maritime crossroads.
Declining gross profit
In 2021, Wrist generated revenue of DKK 4.5bn, up 3.6% from 2020. Gross profit decreased slightly in 2021 to DKK 1,166m from DKK 1,182m in 2020, resulting in a decline in the gross profit ratio to 26.1% compared to 27.1% in 2020.
The primary driver for the lower ratio was the long-run effects of COVID-19, including inflation, high freight rates, and supply chain disruptions as well as a time lag in compensation from customers for these external cost increases.
Operating profit
Operating profit (EBITA) was DKK 155.5m compared to DKK 142.2m in the previous year. A like-for-like comparison of EBITA for 2020 and 2021 revealed an increase of 9.4% or DKK 13m as the result of strong improvements in the business, including optimized sourcing and sales pricing strategies.
However, EBITA was also impacted negatively by costs related to strategic investments in digital innovation and development consultancies. The Group’s equity stood at DKK 932m at the end of 2021, up DKK 104m compared to 2020.
Source2Sea
Source2Sea is a multi-supplier marketplace that facilitates marine procurement and supply
With the founding and funding of a new digital marketplace, Source2Sea, Wrist has taken ship supply to the next level through the elimination of the analogue friction and inefficiency that still plagues marine procurement and supply.
Source2Sea is a multi-supplier marketplace that facilitates marine procurement and supply between maritime buyers and suppliers, increasing convenience and transparency throughout the eco-system with a focus on reducing costs while freeing up time for onshore staff to focus on value-added activities and vessel crews to focus on cargo and vessel operations.
Investments
Source2Sea operates independently of the Wrist Group with Wrist Ship Supply as a major supplier of provisions and stores as well as last-mile logistics.
Investments to strengthen operational capabilities and infrastructure in the remaining business were also prioritised during 2021.
Smart ordering and stock management
An online customer portal was launched within Wrist’s Marine Logistics business area. Innovation within Garrets, the Provision and Stores Management business area of Wrist, continued and the planning of a new online ordering platform took place.
The platform is designed for smart ordering and stock management, and expectations are that it will be fully launched in August 2022.
2022 expectations
These expectations may be impacted by the Russia-Ukraine war causing supply chain disturbance"
Looking ahead, Anders Skipper, Group CFO of Wrist Group says “We anticipate organic growth benefitting from our strong market position. For 2022, we expect total sales to grow to around DKK 4.7-4.9bn and an increase in the operating profit to DKK 240-265m, a 55-70% increase."
"These expectations may be impacted by the Russia-Ukraine war causing supply chain disturbance and price volatility.”
Environmentally friendly product line
In 2021, Wrist launched its first environmentally friendly product line, Aware, to meet customers’ increasing demand for responsible stores and provisions. The green agenda is a key focus for Wrist. “Expectations for the green transition within the maritime and offshore industries are higher than ever."
"With thousands of different products and solutions delivered to seafarers around the world, we are aware of our contribution to the climate footprint. In Wrist, we take our responsibility to help solve the environmental and climate challenges very seriously,” says Jens Holger Nielsen.
