Uzin Utz creates sustainable value and presents record result for 2021
- Group sales revenue: 440.1 million euros (383.6 million euros in the previos year)
- EBIT: 47.5 million euros (40.1 million euros)
- EBIT-Marge: 10.8 percent
- Dividend proposal: 1.80 Euro per share
- Forecast for 2022: Decline in earnings in face of heightened economic uncertainties
Uzin Utz, a global full-service provider for flooring systems headquartered in Ulm, Germany, today presented its business figures for 2021 as part of its virtual annual financial press conference. Despite the corona pandemic and strained supply chains, the Group again posted record sales and earnings. The company reported consolidated sales of 440.1 million euros, compared to 383.6 million euros in the previous year. This corresponds to sales growth of 14.7 percent. With 47.5 million euros, earnings before interest and taxes (EBIT) were also significantly higher than in the previous year (40.1 million euros), which is an increase of 18.5 percent.
Despite continuing restrictions on economic activities and ongoing challenges in the supply chains due to the corona pandemic, sales and earnings of the Uzin Utz Group in 2021 increased more strongly than initially forecast. "We are very satisfied with the course of the 2021 financial year," says Heinz Leibundgut, Chief Financial Officer of Uzin Utz. "The sales increases are mainly the result of projects that we were able to realize in the first half of 2021. They were initially frozen in 2020 and successfully implemented last year. In addition, special effects in the first half of 2021 led to positive earnings developments. Further savings were achieved in the area of other operating expenses, such as travel and event costs," says Leibundgut.
Following the Corona year 2020, 2021 was also characterized by massive global challenges. Supply shortages and the scarce availability of freight space led to significant price jumps in raw material procurement and logistics as early as January 2021. Driven by further economic stimulus programs in the USA and China as well as very high global demand, the price situation intensified in the course of the year. "In view of the continuing very good demand for Uzin Utz products and services, as well as an optimal purchasing strategy, we have succeeded through a great deal of strength and discipline in continuing to grow profitably and, above all, in ensuring our ability to deliver," Heinz Leibundgut continued.
The export ratio rose from 61.3 percent to around 64.2 percent and remains at a very high level.
In its home market of Germany and the Netherlands, the company was able to consolidate its position as market leader and full-range supplier in the flooring sector, and in some other markets, such as the USA, it was able to expand its market share.
Intensified macroeconomic challenges
Since February 2022, the macroeconomic risks have massively intensified. The Russian war of aggression against Ukraine significantly increases the uncertainties for economic development throughout Europe and beyond. Nevertheless, the Management Board of Uzin Utz AG basically assumes that market demand will be satisfactory. Moderate growth is expected for Group sales in 2022 amid continuing supply chain shortages. With regard to the development of the cost of materials, the company expects further significant increases in the course of 2022, starting from the already very high level. EBIT is expected to reach a level lower than the previous year due to rapidly rising price developments, particularly in the raw material, logistics and energy sectors.
The forecast does not yet take into account other negative effects of the war that cannot be assessed conclusively. "A precise assessment of how the war in Ukraine and the sanctions against Russia will affect our business cannot be made currently due to the rapidly changing circumstances. We work intensively to assess potential impacts on a current basis and to develop plans for both the near and the medium to long-term future," explains Heinz Leibundgut.
Strategic goals remain in focus
With the goal of creating sustainable value for all stakeholders, Uzin Utz is consistently implementing its corporate strategy PASSION 2025 and continuing to invest in the future: a total of 35.8 million euros in 2021 and a further 45.7 million euros are planned for 2022. The focus is on creating a second production company in the USA and expanding the production site in the Netherlands. Real estate purchases and expansions at the German sites are also included in the investment sum. In the strategic fields of action Profit, Products & Services and Planet, Uzin Utz is adhering to the target figures of the strategy.
Expenditure on research and development reached 11.3 million euros in fiscal year 2021 (10.7 million euros previous year) - once again one of the highest sums since the 111-year-old company was founded. In the past year, around 129 employees were able to drive forward 130 innovation projects at eleven development sites in international teams.
The number of employees increased from 1,335 to 1,395 (excluding apprentices). Of these, 655 were employed by Group companies outside Germany.
The entrepreneurial activities at Uzin Utz are characterized by a consistent sustainability policy. "Sustainability is the core element of our corporate strategy, which as a central steering element provides the framework for action within Uzin Utz. Environmental and climate protection take high priority," says Leibundgut. Through responsible and efficient handling of the environment and resources, Uzin Utz strives to continuously improve the ecological footprint of the location Ulm and in all Uzin Utz companies. The overarching goal for 2025 is to reduce emissions by 25 percent across the company.
A proposal will be made to the Annual General Meeting to distribute a dividend of 1.80 euros per share on the basis of the positive fiscal year 2021. Uzin Utz is thus continuing its shareholder-friendly dividend policy.
With around 1,400 employees and consolidated sales of 440.1 million euros (2021), UZIN UTZ, the Ulm-based full-range supplier of flooring systems, is a leader in the development and manufacture of products and machinery for screed, flooring, tiling and parquet. The construction chemicals product systems for substrate preparation, floor covering installation and surface finishing, as well as machines and tools for floor and wall finishing, are almost all developed and manufactured in-house by the Group companies and distributed worldwide under the internationally successful UZIN, WOLFF, PALLMANN, arturo, codex and Pajarito brands. For 111 years, we have made the world of floors our passion as a family-owned company, supporting craftsmen, planners, architects and builders. Further information under www.uzin-utz.com
Tanja PeterHead of Communication
Telephone: 0731 4097-4729