Financial year 2020 closed with record figures despite global pandemic

• PASSION 2025 strategy shows first results
• First quarter of 2021 starts with a significant increase in earnings
• Sustainability remains in focus
• Dividend of EUR 1.55 per share approved

As already reported in April, Uzin Utz AG can reflect on a successful financial year 2020. At today's Annual General Meeting, the shareholders of the full-range supplier of flooring systems approved a dividend of EUR 1.55 per share for the financial year 2020. The new payment system for the Executive Board, in which variable payments are also linked to the achievement of strategic goals for the first time, was approved by a large majority. As in the previous year, the Annual General Meeting was held virtually.

The shareholders of Uzin Utz AG approved all agenda points at the virtual general meeting. The majority of the shareholders registered for the Annual General Meeting approved, among other things, the proposal for a new payment system for the Executive Board. It implements the requirements of the new German Corporate Governance Codex, supports the implementation of the corporate strategy PASSION 2025 and the long-term orientation of the group management. The main pillars of the corporate strategy are the four thrusts Planet - People - Profit - Products & Services. Behind these are company-wide goals such as the reduction of climate-damaging emissions by 25 %. In addition, the corporate culture is to be focused on even more in order to achieve a high recommendation rate as an employer. In the financial year 2025, UZIN UTZ is aiming for a sales volume of more than EUR 550 million with an EBIT margin of more than 8 %. Innovations and new business models should contribute significantly to the target sales.

Record figures in the financial year 2020

In the financial year 2020, UZIN UTZ recorded an increase in sales of 3.0 % compared to the previous year and closed with total sales of EUR 383.6 million. At EUR 40.1 million, earnings before interest and taxes (EBIT) for the Group were well above the previous year (EUR 30.2 million). Heinz Leibundgut, Chief Financial Officer, underlined the resilience of the UZIN UTZ Group in the face of the economic impact of the pandemic: "We have mastered the Corona challenges in a stable way so far. The figures show what the UZIN UTZ team has achieved in the past year. My thanks go to all employees as well as to all suppliers and customers. Our employees have done a fantastic job. The year 2020 has shown what we are capable of together. In the first quarter of 2021, we were able to continue the positive trend," Leibundgut continued.

First quarter 2021

The UZIN UTZ Group continues its growth path in the first quarter of 2021. The strategic measures taken in 2020 are consistently showing effect. Thus, consolidated sales in the first quarter amount to EUR 104.6 million (EUR 98.2 million Q1/2020), which corresponds to an increase of 6.6 % compared to the previous year's value. Earnings before interest and taxes (EBIT) rose disproportionately by 36.6 % from EUR 8.7 million to EUR 12.0 million. "We have made a very good start to 2021. Nevertheless, we will have to fight for our result in the coming months and wait to see what concrete effects the raw materials crisis will have on our business. Significant price increases for certain raw materials will weigh on the result in the second and third quarters," says Heinz Leibundgut.

Sustainability remains in focus

Despite the difficulties of the pandemic, UZIN UTZ has not lost sight of climate protection. In the past financial year, fundamental structures were established for the further development of climate management throughout the entire UZIN UTZ Group. The declared aim is to further develop resource-saving products and packaging, to use products with renewable raw materials and to improve the overall ecological footprint with climate-optimised processes. "In the future, we want to make an even greater contribution with regard to a transparent and sustainable value chain and be a role model for the industry," explains Philipp Utz, Member of the Executive Board, in his presentation. In a continuous development process, the Ulm-based construction chemicals manufacturer is working closely with BASF to increase the proportion of raw materials of bio-based origin in its products to conserve precious and limited resources and reduce greenhouse gas emissions. By using renewables instead of fossil resources alone, CO2 emissions at UZIN UTZ can be reduced by nearly 3,000 tons per year in terms of raw materials. 

Employees

"As a team, we have mastered the challenges of the corona pandemic excellently and, in the process, found ways to successfully transfer our corporate culture into the digital world," says Julian Utz, member of the UZIN UTZ board of directors. According to Utz, the results of the global employee survey paint an extremely positive picture of the mood in the company. "This year in particular, the feedback from our workforce gives us a stable foundation and great hope that we will be able to overcome the challenges posed by the COVID 19 pandemic together as a team. 85 % of the workforce in our core and growth countries would recommend UZIN UTZ as an employer. This great result emphasises in a special way the loyalty and identification with our group of companies", Julian Utz continues.

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) in the other countries in which UZIN UTZ is active with its own presence. In addition, 49 (49) young people were given an apprenticeship.

Outlook

A price increase in important raw materials could already be observed in the past months. The reasons for this are complex. The economic upturn in China and a lack of freight capacities, corona-related production bottlenecks, production and delivery shortfalls due to the severe winter onset in the USA, the blockade of the Suez Canal and the usual seasonal increase in demand are all making themselves felt. Despite a forward-looking procurement policy and stockpiling, this development is now also having a full impact on UZIN UTZ. "We continue to observe strong construction activity in many countries and are confident that the high demand for our products and system solutions in new construction and renovation will continue throughout the year.," says Philipp Utz. Furthermore, construction of the new production site in Waco, Texas, is scheduled to begin towards the end of the second quarter in the form of a groundbreaking ceremony.

Dividend

The Board of Directors and the Supervisory Board of the UZIN UTZ Group have proposed to the Annual General Meeting the payment of a dividend of EUR 1.55 per dividend-bearing share in order to allow the shareholders to participate in the business success in 2020.

The most important voting results at a glance:

Dividend per share: EUR 1.55

Total dividend payout: EUR 7,818,694.45 

Ratification of the acts of the Executive Board: 97.441 %

Ratification of the actions of the Supervisory Board: 96.367 %.