Safran reports ‘solid’ double-digit revenue growth in Q1

Safran’s Q1 2022 financials show what the company calls “strong organic growth in all divisions”, notably driven by aftermarket activity.

Q1 2022 revenue amounted to €4,071 million, up 21.8% compared to Q1 2021. Revenues from aircraft interiors activities increased by some 29.4% (though partly due to a favourable comparison basis in Q1 2021). The company’s Seats and Cabin (galleys and toilets) activities saw growth, both in OE and services.

Safran’s CEO, Olivier Andriès, said of the results: “2022 has started off well, with Q1 organic growth at 17%, in line with our full-year guidance in a difficult context of significant air traffic volatility in China, the Russia-Ukraine conflict, supply chain tensions and inflationary pressure.
“We are taking vigorous steps to offset fully the margin impact of the Russia-Ukraine conflict and inflation, notably additional savings in all Group entities and strict control in the phasing of expenses.

“Commercial momentum is still building up, with meaningful contracts booked since the beginning of the year,” he added.

Safran has also given its FY 2022 outlook, with revenue of €18-18.2 billion and a recurring operating margin of c.13.0%. The company says that key items to monitor over the period will be the pace of air traffic recovery (particularly in China); the state of the supply chain and any cost inflation in energy, freight and raw materials, and the geopolitical environment.