Double-digit sales growth in local currencies in all regions – negative currency effects on sales and earnings – results also hit by significant rise in cost of raw materials
Forbo Holding AG / Key word(s): Half Year Results
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The Forbo Group – a leading manufacturer of floor coverings, building and construction adhesives, as well as power transmission and conveyor belt solutions – reported net sales of CHF 667.3 million in the first half of 2022 (prior-year period: CHF 623.1 million), which reflects growth of 11.4% in local currencies (7.1% in the corporate currency). Operating profit (EBIT) decreased by 4.3% to CHF 78.6 million (prior-year period: CHF 82.1 million). The EBIT margin came to 11.8% (prior-year period: 13.2%). Group profit saw a decline of 5.0% to CHF 60.3 million (prior-year period: CHF 63.5 million).
Baar, July 29, 2022
Forbo made a good start to 2022 after the pandemic-affected performances of previous years. However, recent months have been characterized by the major challenge of persistent steep increases in raw material prices.
Negative currency effects, significant increases in the cost of raw materials, transport and energy, along with increases in personnel and other costs, combined to strongly impact profitability. It was possible to reduce the extent of this, albeit with a certain time lag, through the implementation of sales price increases on our part. In addition, sales growth in Asia/Pacific was affected by the renewed imposition of COVID lockdowns in China.
On the whole, Forbo responded with considerable success to these challenges in an increasingly difficult environment. The short-term bottlenecks in the supply chains were successfully rectified and this, combined with raising the minimum stock levels of raw materials, ensured that the availability of the products was guaranteed to the greatest possible extent.