Wrist Expands Despite Tough 2018
Despite difficult markets Wrist Ship Supply was able to grow its business during 2018 and to consolidate its position as the world’s largest supplier of provisions and stores to ships and offshore locations, claimed the ship and offshore supplier of provisions and stores.
Most shipping segments saw pressure on earnings, and the recovery in the oil and gas markets was limited during 2018. The customers’ demand for lower operating costs by strict budget control and shift towards lower priced goods continued.
“As a trusted partner, we side with our customers in their pursuit of profitability, even more so in the present tough market conditions. And we keep developing our services in order to meet the customers’ requirement, both short-term and in the long run,” said Robert Kledal, CEO of Wrist Ship Supply.
Wrist managed to generate revenue of DKK 4.3bn, up 4% from the previous year, and increased an operating profit from DKK 224m in 2017 to DKK 244m before special costs to acquisitions, strategy implementation and restructuring. The gross profit margin was calculated 25.5% against 24.4% the previous year.
On a yearly basis, special costs increased by DKK 20m thereby maintaining the operating profit after special costs at DKK 213m.
The Group’s equity stood at DKK 812m at the end of 2018, while debt was DKK 409m. The return on invested capital was calculated at 14.6%.
In 2018, Wrist continued its expansion as the world’s largest supplier of provisions and stores to ships and offshore locations. In June, Wrist announced its acquisition of Klevenberg Shipping Center, based in Rotterdam.
Klevenberg is a strong and very well reputed provider of ship supply services, not least in Europe’s very important Amsterdam-Rotterdam-Antwerp region. The acquisition marked another significant step in the steady development of Wrist’s global network.
In its ambitious strategy, launched last year, Wrist sets high and demanding targets – both operationally and financially. The objective is to stay competitive and ahead of market trends and to meet customers’ demands while maintaining Wrist’s role as a recognized and qualified supplier and business partner.
To reach the 2021 targets, Wrist plans for increased sales based on contractual commitments and digital interfaces or channels. Significant investments were made during 2018 in IT and digital convenience products.
“We will keep building and strengthening our operating model, enabling lower unit costs, fast and accurate deliveries and easiness of customer ordering and paying, all based on a scalable system platform, and enabling Wrist in leading the industry consolidation,” said Robert Kledal.