Würth Group reports double-digit sales growth in first half of 2021
- Strong growth despite pandemic
- Würth Group exceeds 81,000 employees
- Supply bottlenecks and price increases for raw materials pose new challenges
The Würth Group, the global market leader in the sale of fastening and assembly materials, reported sales of EUR 8.4 billion in the first half of 2021, up 20.9 percent over the same period last year. Adjusted for currencies, sales grew by 22.6 percent. In Germany, the Würth Group generated sales of EUR 3.4 billion (+16.4 percent), with the companies abroad achieving total sales of EUR 5.0 billion (+24.3 percent).
The month of April has been historic: The Würth Group achieved monthly sales of EUR 1.42 billion, which translates into year-over-year growth of 50.5 percent (adjusted growth: 47.6 percent).
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.
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 EUR 1.25 billion including intra-Group sales (+17.9 percent).
Divisions Construction and Metal, business units Elektronik eiSos and Electrical Wholesale showing exceptional growth
Total sales in Divisions Metal and Construction improved by 22.0 percent over the previous year in the first half of 2021. The companies in business unit Electrical Wholesale reported strong growth of 32.3 percent. eiSos Group was equally successful, achieving growth of 34.1 percent.
Price increases for raw materials pose new challenges
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 further aggravate the situation: The COVID-19 outbreak at the South Chinese port Yantian is 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. Continuing to supply our customers quickly and reliably remains our top priority. Further price increases will be unavoidable.
At EUR 520 million, the Würth Group’s operating result in the first half of 2021 is well above that of the previous year (2020: EUR 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.
The number of employees increased by 2,626, from 79,139 at the end of last year to 81,765 after the first half of 2021. In Germany, the number of employees amounts to 24,971. Around the world, the Würth Group employs more than 33,000 sales representatives in the field.
Sustainability: Installation of photovoltaic system
Adolf Würth GmbH & Co. KG plans to build photovoltaic systems on a total surface area of up to 28,000 square meters in the final construction stage on the campus in Künzelsau and the nearby central logistics hub in Gewerbepark Hohenlohe industrial park in 2022. These systems will fully utilize the internal energy generation potential on the existing roofs. Adolf Würth GmbH & Co. KG is planning to cover around 20 percent of its power needs on campus with internally generated electricity, e.g. for the charging infrastructure of the growing number of electric fleet vehicles.
Moderate outlook for the second half of the year
The Würth Group is currently expecting growth in the double-digit range, to a total sales volume of around EUR 16 billion, in fiscal year 2021, up from EUR 14.4 billion in 2020. While the economy has recovered in recent months, COVID 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. We have to be prepared for everything.
About the Würth Group
The Würth is the global market leader in its core business, the sale of fastening and assembly materials. Other wholesale and production companies, the so-called Allied Companies, operate in related areas, including electrical wholesaling, electronics and financial services. More than 400 companies operating over 2,400 branch offices and shops in more than 80 countries form part of the Würth Group. The Group achieved sales of EUR 14.4 billion in fiscal year 2020.