The Van Leeuwen Pipe and Tube Group ended 2022 with record revenue and net profit figures. The global markets and the global economy were affected by the exceptional geopolitical situation, significantly increasing energy prices and inflation. Globally, material prices increased sharply due to supply chain disruptions. Tonnages sold were less than in the previous year. This decrease in volume was, however, paired with higher price levels, as a result of which revenue increased significantly.
The strong growth in profit provided an opportunity to significantly invest in the company, for example in logistics and storage systems, specialized processing systems and in the modernization and expansion of warehouses and offices. Van Leeuwen also invested in the expansion and optimization of its product portfolio and stocks. Significant attention was focused on developing employees and teams. This made the considerably expanded Van Leeuwen network more competitive on the market.
Total revenue of the Van Leeuwen Pipe and Tube Group amounted to € 1,672 million in 2022 (2021: € 1,431 million). The operating result amounted to € 104 million (2021: € 79 million) and the net result was € 88 million (2021: € 64 million). Solvency improved to 42.9% (2021: 40.7%).
In 2023, market conditions were clearly different from the two prior years, in which the market was characterized by special conditions, such as disruptions in the supply chain, shortages of raw materials, exploding energy prices, geopolitical conditions and sanctions, the corona pandemic and the rising cost of wages. These hectic conditions had largely disappeared by the beginning of 2023. However, other issues began to affect the market, such as the uncertainty of economic conditions, fears of a recession, increasing inflation and rising interest rates. In addition, energy prices continued to be high and there were concerns about geopolitical stability. All of this clearly affected market demand and price trends.
The consolidated net revenues of the Van Leeuwen Pipe and Tube Group were € 1,621 million and, with a minor decline compared to the previous year, stayed relatively stable (2022: € 1,672 million). In comparison to 2022, market demand decreased, especially in the second half of the year. This resulted in lower distribution volumes and significantly lower prices, which in turn resulted in lower revenue in 2023. Due to an increase in project volumes, the sales volume stayed more or less the same as last year. The operating result decreased from € 104 million in 2022 to € 60 million in 2023. This was due to a reduction in volume combined with the higher cost of end-products. As a result, the margin percentage decreased to 19.3% (2022: 21.6%), and the total gross margin decreased from € 361 million in 2022 to € 313 million in 2023.
Optimal logistics and operations are essential for us to be able to realize our promises to our customers. Our logistics activities can be grouped into three main functions. Distribution from stock is one of these main functions. Here we make a distinction between sales from freely available stocks and sales from dedicated customer stocks. An optimized network of stock-keeping locations with a broad product portfolio and the mutual exchange of stocks enhances our competitiveness in the market.
As the number one pipe and tube distributor and specialist in the world we focus on creating better value for our customers with our strategic agenda ‘Van Leeuwen 4.0’. We do this on the basis of our broad offer of pipes and pipe and tube products: a broad product portfolio and service delivery package focused on customer wishes and on developments and innovations in our various markets. We offer all of this from our worldwide interconnected network of companies. The breadth and diversity of our offer of products and services, combined with our spread across 70 locations, form the basis of the success of our company.
2024 marks one hundred years since our company was founded in Zwijndrecht, the Netherlands. Piet van Leeuwen started his company with a batch of pipes. In one hundred years’ time, this one-person company grew into a globally operating company active in 32 countries. Over the last century we acquired a strong position globally as a leading pipe and tube distributor that each and every day offers its customers ‘more than tubes’. We are celebrating our anniversary under the motto ‘Connecting Worlds’. This stands for our international network with dedicated teams connected with customers and suppliers all over the world. Connecting Worlds is all about continuous development and sustainable growth, customer focus, networks, a close-knit company culture, international cooperation and innovative entrepreneurship.
