The Wacker Neuson Group says that it returned to its growth trajectory. In fiscal 2021, business developments at the Wacker Neuson Group recovered quickly from the 2020 drop in revenue triggered by the COVID-19 pandemic.
The Munich, Germany-headquartered Group reported revenue of €1.8662 billion, which is an increase of 15.5% relative to the previous year (compared with €1.6155 billion in 2020).
“Looking back on 2021, hard work and a concerted effort made this a successful year. We were hampered by overstretched and repeatedly disrupted supply chains. Raw material and component shortages repeatedly led to rework efforts, which, compounded by rising material prices and spiralling shipping costs, harmed margins. However, our employees worked tirelessly to get as many machines as possible onto our production lines and delivered to our customers despite all the obstacles,” explains Dr Karl Tragl, CEO of the Wacker Neuson Group.
In Europe, revenue increased to €1.4775 billion, a rise of 14.6% (compared with €1.2897 billion in 2020). This exceeded the previous record of €1.379 billion reached in 2019. Alongside the firm’s domestic markets of Germany and Austria, business also developed strongly in the UK. In most countries in Southern, Eastern and Northern Europe, the Group was also able to report high double-digit growth, albeit against a lower baseline in some cases due to the impact of the pandemic.
Once again, business with customers in the agricultural sector developed particularly positively. Despite the stable development of business in 2020 and the resulting strong baseline for comparison from that year – the fall in revenue amounted to only 1.9% – the Group managed to grow revenue in this segment by 14.5% to The Wacker Neuson Group reports that it is experiencing a clear rise in revenue and profitability. Group revenue is reaching €1.866 billion, a growth of 16%. However, supply chain bottlenecks have slowed the pace of growth.
The firm says it is seeing a clear rise in profitability, with an EBIT margin at 10.3% (a rise of 5.6%). The net working capital is at 26.7% and well in target range of ≤ 30%. The firm’s high free cash flow has resulted in a positive net financial position. For 2022, revenue is projected at between €1.9 and €2.1 billion, while the EBIT margin is expected to lie between 9% and 10.5%.
Revenue in the Americas – a region that was hard hit by the COVID-19 pandemic – recovered in fiscal 2021, partly driven by a gradual upturn in demand from rental firms as the year progressed, rising 21.5% overall to reach €328.6 million. Business developed particularly well in Canada, where the Group was already able to exceed pre-crisis revenue levels.
In Asia-Pacific, revenue increased relative to the previous year by 8.5% to €60.1 million. While the Group continued to face a challenging market environment with surplus capacities and significant price pressure in China, business in Australia developed at a dynamic pace. The Group significantly increased its revenue in this market and recorded growth in the double-digit percentage range relative to the pre-crisis year of 2019.
Group profitability rose significantly in fiscal 2021 – even when compared with the pre-crisis level of 2019. Following the sharp downturn in 2020, earnings before interest and taxes (EBIT) climbed 155.6% to €193 million.
