Market slowdown hits Van Leeuwen performance, remains profitable

After highly favourable market conditions in the previous two years, Van Leeuwen Pipe and Tube Group’s performance stuttered in 2023 but remained positive.

Demand in various markets declined, causing price pressure which resulted in lower gross margins, Kallanish hears from the Dutch company. Revenue stayed virtually the same as in 2022 due to a higher volume of direct deliveries and projects, at €1.62 billion ($1.72 billion). Operating result amounted to €60 million, after €104m 2022, and net result came to €43m, down from €88m.

Sales from stock were lower in all markets than the previous year due to decreased market demand. This was, however, offset by a higher volume of direct deliveries and projects.

Van Leeuwen notes it maintained its share in the European industrial markets. Demand was lower in the construction and mechanical engineering markets, but was good in the hydraulics and automotive sectors. The group benefited from solid activity in the global energy markets, as it supplied energy projects in the Middle East, Asia and the US.

The company invested in logistics and storage systems, specialised processing systems, and in the modernisation and expansion of warehouses and offices. It also invested in sustainable solutions. It has the ambition to be the greenest pipe and tube distributor in the world by 2030. To date, Van Leeuwen has invested €6.5m in captive green electricity generation at sites in the Netherlands, Germany, Romania, Denmark and Australia.

Christian Koehl Germany