Würth Group reports double-digit sales growth 20 July 2021

Würth Group has reported sales of €8.4 billion in the first half of 2021, up 20.9% over the same period last year. Adjusted for currencies, sales grew by 22.6%. In Germany, Würth Group generated sales of €3.4 billion (+16.4%), with the companies abroad achieving total sales of €5 billion (+24.3%).

Robert Friedmann, chairman of the central managing board of the Würth Group, commented: “That our growth in the first half of 2021 came out so strong, despite the pandemic, has exceeded all our expectations. It is especially great to see that almost all business units are growing.”

The month of April was historic for Würth Group, achieving monthly sales of €1.42 billion, which translates into year-over-year growth of 50.5% (adjusted growth: 47.6%).

Adolf Würth GmbH & Co KG, the parent company and at the same time largest individual company in the Group, also did well. In the first half of 2021, it generated sales of €1.25 billion including intra-Group sales (+17.9%).

At €520 million, Würth Group’s operating result in the first half of 2021 is well above that of the previous year (2020: €280 million). The outbreak of the Covid-19 pandemic at the beginning of 2020 put a considerable drag on the operating result in the second quarter of 2020. Strong sales growth across almost all business units, combined with lower costs due to the Covid-19 pandemic (e.g travel, conference and trade show costs) are now positively impacting the 2021 result.

 

Price increases for raw materials pose new challenge

Demand for semi-finished and finished goods has been ramping up rapidly since the end of 2020, resulting in production and supply bottlenecks and, consequently, in rising manufacturing and procurement costs. The problems within the supply chains also further aggravate the situation. The Covid-19 outbreak at the South Chinese port Yantian is also adding to the already substantial delivery delays.

“There are not enough raw materials on the market, which presents us with great challenges, especially when it comes to fasteners, wood connectors, mounting rails and fittings,” explained Robert Friedmann. “Continuing to supply our customers quickly and reliably remains our top priority. Further price increases will be unavoidable.”

 

Moderate outlook for H2 2021

Würth Group is currently expecting growth in the double-digit range, to a total sales volume of around €16 billion, in fiscal year 2021 – up from €14.4 billion in 2020. While the economy has recovered in recent months, Covid-19 infection rates are dropping as vaccinations go up, the economic research institute Ifo is warning against setbacks caused by the Delta variant.

“We must not take these strong growth rates for granted. The current situation is very volatile,” stated Robert Friedmann. “We have to be prepared for everything.” 

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