Reporting on results for the first half of 2022, The Würth Group has continued its growth from 2021 despite the unstable economic situation.
The globally operating Group recorded sales of EUR 9.9 billion in the first six months, corresponding to an increase of 18.4% compared to the same period last year and of 17.0% adjusted for currency effects. As of June 2022, the operating result of the Würth Group is at EUR 720 million, up on the previous year (EUR 520 million). This positive development is above all the result of productivity increases at the large, established companies in Germany, Southern Europe and the USA.
"Supply and material bottlenecks, price increases, the COVID-19 pandemic and, since February, the conflict in Ukraine: Coping with these crises which are currently hitting the economy is very challenging for all of us. Currently, the energy crisis is coming to a head and we are all looking for alternatives, which, in turn, may be an opportunity for the transition to more sustainability. In this context, achieving such positive results is more than satisfactory. However, we are aware that we will probably not be able to maintain these high growth rates given the fact that the economy is cooling down," said Robert Friedmann, Chairman of the Central Managing Board of the Würth Group.
In Germany, the Würth Group generated sales of EUR 3.9 billion (+12.7%). Adolf Würth GmbH & Co. KG, the largest individual company of the Würth Group, generated sales of EUR 1.4 billion including intra-Group sales (+10.1%). The further expansion of multi-channel sales has been beneficial with E-business sales growing by 21.4% year-on-year, representing 20.2% of total sales.
The German economy is gradually recovering from the effects of the pandemic, although the conflict in Ukraine and China’s zero-Covid strategy are driving up prices, which is curbing growth. Increased energy costs, supply bottlenecks and delays in ships being cleared across many ports, is also having an impact.
"The outlook for the second half of 2022 is certainly anything but optimal due to difficult general conditions. Nevertheless, we currently expect the company to continue its positive development with double-digit sales growth in 2022-provided the global economic and political situation does not deteriorate more dramatically," says Mr. Friedmann.