Würth Group with historic records in sales and operating result
- Sales growth by 18.5 percent to EUR 17.1 billion
- Operating result increases to EUR 1.2 billion
- Share of e-business rises to almost 20 percent
- Pick-up shops worldwide more than doubled after ten years
- New administration building: Start of construction in May 2024
- Inauguration of innovation center in third quarter of 2022
The Würth Group set historic records in the 2021 fiscal year: According to the preliminary annual financial statements, the company generated sales of EUR 17.1 billion (2020: EUR 14.4 billion) corresponding to an increase of 18.5 percent, or 19.0 percent adjusted for currency effects. In Germany, the Würth Group’s sales grew by 14.1 percent to EUR 6.9 billion (2020: EUR 6.1 billion). With EUR 10.2 billion (2020: EUR 8.3 billion), the Würth companies abroad achieved even more successful results.
In Southern and Western Europe, the Group companies reported above-average growth rates, which were partly due to the very high sales slumps in 2020 in countries like Spain, Italy and France caused by the COVID-19 pandemic. Würth Elektronik eiSos Group (+ 36.8 percent) and the Electrical Wholesale unit (+ 28.8 percent) were particularly successful. Adolf Würth GmbH & Co. KG (AW KG), the parent company and the largest individual company in the Würth Group, generated external sales of EUR 2.1 billion (+ 11.3 percent).
According to preliminary annual financial statements, the operating result of the Würth Group is clearly up on the previous year with EUR 1.2 billion (2020: EUR 775 million). Strong sales growth and higher productivity contributed significantly to the positive result. In addition, due to the pandemic, costs for travel, trade fairs and conferences did not incur in 2021.
We are in the middle of the 4th wave of the pandemic, and the development of supply chains is challenging us all. Achieving results like this under such conditions shows that we have tailor-made products and services for our customers. It is also important to convey calmness and security in a crisis. In a family business like ours, Prof. Reinhold Würth and Bettina Würth play a decisive role in such a situation.
Multi-channel strategy takes effect
The number of pick-up shops worldwide has more than doubled to 2,497 in the past ten years. Our customers’ procurement of material via these shops represents an important component of our multi-channel strategy. In addition, our digital channels such as the online shop, e-procurement and the Würth App offer the right solutions for contactless shopping. In the business year 2021, the e-business unit generated sales of EUR 3.4 billion, which corresponds to a new record with 19.9 percent of the Group’s total sales.
The number of employees in the Würth Group increased by 4,044 to 83,183 in fiscal 2021. In Germany, the number of employees amounts to 25,438. Around the world, the Würth Group employs more than 33,000 sales representatives.
Own production companies ensure independence from supply chains
The Group’s own production plants in Germany and Europe ensure a certain independence from global supply chains.
ASSY®, our screw for wood construction, is produced by the Group company SWG Schraubenwerk Gaisbach. This means that we do not depend on Chinese steel imports. Today, already 80 percent of our goods originate in Europe.
Nevertheless, the supply bottlenecks also made themselves felt in individual areas of the Würth Group. For example, the shortage of chips had an impact on companies in the Group that depend on the automotive industry as they supply to OEMs directly.
Investment in the Künzelsau site and the Hohenlohe region
In the third quarter of 2022, the new innovation center in Künzelsau-Gaisbach will be opened with the aim of streamlining innovation cycles, bringing new and further developments to market more quickly and offering customers even more solutions of added value. At the same time, a new parking garage is being built with 752 parking spaces, of which 48 are e-charging spaces. In addition, the company is investing in a new administration building with around 375 workplaces. Construction start is scheduled for 2024. The focus of this building project is on sustainability and the circular economy: The 49-meter high-rise building will be based on a hybrid wood construction. The high proportion of prefabricated wood elements will reduce the carbon footprint.
Outlook on 2022
The situation on the procurement market will remain tense in 2022. The decision of the German government to make vaccination compulsory will have a significant impact on the development of the pandemic and thus on the economic activity.
Despite these uncertainties, we assume that we will achieve new record sales in the coming business year and achieve adequate operating result growth, as our multi-channel strategy, far-reaching digitalization and large number of own production facilities mean that we are in an independent position now and will continue to be so in the future.
The Press Conference on the Annual Financial Statements of the Würth Group will take place on 11 May 2022.
About the Würth Group
The Würth Group is the global market leader in its core business: the sale and manufacturing of fastening and assembly materials. Other wholesale and production companies, the Allied Companies, operate in related areas, including electrical wholesaling, electronics and financial services. In more than 80 countries, the Group employs more than 83,000 employees in over 400 companies with more than 2,400 pick-up shops. According to preliminary annual financial statements, the Group generated consolidated sales of EUR 17.1 billion and an operating result before tax of EUR 1.2 billion in fiscal 2021 year.