German arms manufacturer Rheinmetall has reported a 13% rise in sales to €6.410bn in fiscal year (FY) 2022, compared to €5.658bn in FY2021.
The €752m increase in consolidated sales excludes currency effects, which reduce the sales growth to only 10.5%. The company said this figure is less than the projected 2022 outlook.
Sales growth was registered across the company’s five divisions, with specifically higher results in the Vehicle Systems division, with €2.27bn in sales, and the Weapon and Ammunition business, which saw €1.47bn in sales.
The two segments were responsible for addressing the armed forces’ increasing demands for vehicles and munitions.
Under the Vehicle Systems segment, higher sales have primarily been attributed to the delivery of 209 Lynx infantry vehicles to Hungarian forces and the delivery of the 3,000th truck for the German forces’ unprotected transport vehicle project.
In addition, the contract extension with the UK government to deliver an additional 100 Boxer wheeled vehicles amounted for an order volume of €256m in FY22.
Rheinmetall’s Electronic Solutions division, which delivers infantry, air defence, and simulation equipment to the armed forces, reported €1.063bn in sales.
Rheinmetall CEO Armin Papperger said: “The epochal shift and war in Europe has also ushered in a new era for Rheinmetall. Many countries have recognised the urgent need to step-up their efforts for security. With our products, we aim to take a share of growing budgets for military equipment.”
The Düsseldorf-based company achieved a ‘new record’ of a 27% increase in operating results to €754m in FY22, including earnings before interest and tax before special items.
Earnings after taxes rose by 61% to €535m while earnings per share increased to €10.82.
For the year that ended on 31 December, Rheinmetall’s order backlog was €26.6bn.
A similar upward trajectory was recorded for the company’s operating margin, which stood at 11.8%, compared to 10.5% in FY21. Rheinmetall is expecting this margin to increase to 12% in FY23.
For FY23, Rheinmetall is expecting annual sales to be between €7.4bn and €7.6bn.
Papperger added: “We have also set ourselves ambitious targets for sustainable, profitable growth in the future.”