GEA's 2021 Revenue Comes in Slightly Below Our Forecasts on Supply Chain Disruption

Supply chain disruptions and a timing lag on price increases in line with input costs caused GEA Group's full-year 2021 to come in slightly below our expectations. Sales grew by 1.5% on a reported basis, below our 4.8% estimate. However, EBITDA was slightly ahead of our forecast with the 13.3% EBITDA margin beating our and the company provided consensus estimate. However, underlying demand was strong across all divisions. We expect the company to make up for that shortfall and meet our current 2022 EBITDA forecast. Our wide moat rating remains intact, and shares currently offer 13% upside relative to our EUR 43 fair value estimate.