Kendrion develops, manufactures and markets high-quality actuator products for industrial applications (52% of revenues) and automotive (48%). The geographical spread of FY22 revenues was Europe 68%, the Americas 17% and Asia 15%.

In Q223, organic revenue growth of 9% was better than expected and also better than the 5% in Q123. Gross margin remained under pressure due to Kendrion passing on material price inflation at no margin and the high usage of outsourced development services. The EBITDA margin decline of 60bp was lower than the 140bp decline in Q1 and management was positive about the recent trend in gross margin (driven by further price increases). Kendrion expects the slower economic activity levels to persist for the rest of FY23 but remains positive about its long-term growth prospects.