UZIN UTZ reports record year: Despite corona, sales and earnings in 2020 at highest level in the company’s history

• New record in sales and earnings
• Strategic course set
• Further investments in the million

Ulm, April 21, 2021 – The UZIN UTZ group, a globally active, full-range supplier of flooring systems with headquarter in Ulm, has closed the financial year 2020 with record sales. The swabian family-owned company recorded a 3.0 % increase in sales compared to the previous year and closed 2020 with total sales of 383.6 million euros. At 40.1 million, consolidated earnings before interest and taxes (EBIT) in the Group were significantly higher than in the previous year (2019: 30.2 million euros).

„To achieve such a result in the corona year 2020 is an impressive demonstration of the passion which all our employees put in their work: They did not only drive important changes and thereby reach great achievements, overall they demonstrated a strong team performance. They handled the situation with discipline, take the economic challenges and don’t lose sight of our customers. This discipline was worth it and has lead again to a very successful financial year.“, says Heinz Leibundgut, CFO at UZIN UTZ. The positive business development was mainly driven by the sales development of the companies UZIN UTZ Nederland B.V., INTR B.V., codex GmbH & Co. KG, as well as Uzin Utz AG. On the earnings side, the Ulm-based construction chemicals specialist was able to record a significant increase due to the low costs because of the nearly non-existent travel activities as well as the lack of presence events, such as trade fairs and customer events. Earnings before interest and income taxes of €40.1 million were therefore above the realistic expectation and above the very successful previous year's figure of €30.2 million.

Strategic course set

In january 2020, the goals of the new corporate strategy PASSION 2020 were firstly communicated outwards. Until the end of 2025, the earnings over all companies and brands should be above 550 million Euro. According to UZIN UTZ, profit (EBIT margin) is expected to exceed 8% of sales within the next six years. In 2020, first projects to the separate strategic initiatives could already be realized. Among these were projects to several issues: production, sustainability, corporate culture, digitalization and development. The realization of these projects represent a first partial success of PASSION 2025 and this is, according to Leibundgut, reflected by the figures. „We were able to increase our customer benefit outwards and expand market presence. Internally, our organisation is gaining in effectiveness and efficiency“, says Leibundgut, who runs the family business together with Julian and Philipp Utz.

The overriding economic targets are not a self-purpose for UZIN UTZ, they are crucial in order to be able to successfully assert itself on the market in the future as a family-run, medium-sized company. Brexit, the international trade dispute and, last but not least, the effects of the pandemic lead to short-term changes in political framework conditions and increased market dynamics.

Massive expansion of the digital working environment

Already with the announcement of the first lockdown in March 2020, the UZIN UTZ Group has massively expanded its digital working environment. The flooring specialist has to find alternative forms for the communication with customers. Several digital offers like user films, webinars, online trade fairs and digital signposting in the trade incurred in the past financial year and have been a permanent part of the communication.

Further already planned expansion stages and investitions on the inter-national locations.

In order to consolidate and further expand its market and innovation leadership in the focus regions and to actively utilise growth potential, the UZIN UTZ Group continued to intensify its investments at its worldwide locations in 2020. The Group's total investments in the reporting year amounted to €15.6 million (€22.6 million).

Employees

In the reporting year, the Group had an annual average of 1,335 (1,318) employees. Of these, 713 (687) worked in Germany and 622 (631) abroad. In addition, 49 (49) young people received training. „Our employees are our most important resource and at the same time a crucial distinguishing feature in the competition. Therefore, we are proud to have such great employees“, says Leibundgut.

Outlook

At the moment, the UZIN UTZ Group assumes a tense situation with regard to the security of supply and the price development on the raw material and packaging markets. Nevertheless, the UZIN UTZ Group is optimistic that it will be able to achieve a solid result in the 2021 reporting year, even with a declining EBIT. The EBIT margin will fall slightly in the reporting year 2021, this will mainly be due to the lack of special items, provided that the situation in the Corona crisis eases and safe travel is possible again.