The first quarter of 2022 was again successful for CEDES. We`ve unlocked the full potential of our new product portfolio developed over the last few years, allowing us to reach almost 10% growth in 2021. During the first 3 months of this year, CEDES has again seen significant growth of 4%.
But what will the second quarter bring? Today, we are surrounded by uncertainties: the pandemic and China`s complicated reaction to it, war, problems with material and transport availability and skyrocketing costs. We are fortunate to have capiton ag by our side, a forward-thinking private equity partner who made a strategic acquisition possible despite the uncertain times. With the acquisition of VITECTOR, CEDES becomes a global leader on the industrial door sensor market.
EU`s real GDP is expected to grow by 2,7 % in 2022 and by 2,3 % in 2023; the interim forecast in winter 2022 was still at 4,0 % and 2,8 %. Inflation, creeping from the beginning of 2021, increased from 4,6 % (Q4 2021) to 6,1 % (Q1 2022).
EU Commission, May 16th, 2022
The industry is still surprisingly resilient, despite the multiple signs of a slowdown, as shown by the reduced GDP growth forecast. However, each crisis must come to an end and bring swing-back potential, even though making a precise prediction of when we get back to normal would be impudent at this point.
It is now more important than ever not to become paralyzed with fear and use this uncertain phase to accelerate crucial projects instead. The greatest challenge is to ensure the company`s profitability at the same time. This is not easy in a situation where we need to buy important electronic components on the spot market in order to preserve delivery capability, for up to 20 times their normal price. The transport with a container now costs up to 7 times more than before. These difficulties have had an enormous cost impact in the first quarter of this year but cultivating good relationships with our supply partners and involving them in our growth has really paid off. A sophisticated, cost-optimized global supply chain needs re-thinking. It is too risky to focus production in one Asian country, especially in China.
Distributing it on various continents mitigates the geopolitical risk, helping to shorten the supply chain and avoid capital being stuck on sea.
CEDES continues its strategic development. In the 35 years of CEDES history, we have grown mainly with our sensor systems for elevators, gradually expanding the portfolio with safety-relevant control systems. The APS, iDiscovery and Custom Controls product families are becoming an important part of our business. After years of investment, research and development, also the sales of our cutting-edge ToF 3D sensors are gaining momentum and contributing to our organic growth.
The next important step in our strategical positioning is the acquisition of the VITECTOR industrial door sensor portfolio from FRABA, initiated end of March. The existing CEDES portfolio of SIL-2-certified light curtains has significantly developed in the last few years, and the VITECTOR portfolio ideally compliments our offer. As a full-liner, CEDES now becomes a global leader for industrial door sensors, strengthening its second strategic pillar. Thanks to the strong global presence of the CEDES Group, we can broaden the market for VITECTOR products. With the deal closing on June 1st, 2022, the CEDES Group takes over the portfolio under the brand name “VITECTOR by CEDES”.
We are also pleased to welcome Bernd Kagerer on the Team on June 1st, 2022. He had significantly contributed to the development of the VITECTOR portfolio at FRABA in the past and is now coming back to the world of industrial door sensors. Bernd will be the new President Entrance Automation and Member of the Management Board at CEDES, responsible for the further development of our second strategic pillar.
Christian-Erik Thöny and Christian Leeser, CEO of FRABA
CEO CEDES Group
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