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 - Seite 2

Double-digit sales growth in all regions
In the first half of 2022, Forbo achieved a considerable increase in sales in local currencies of 11.4% to CHF 667.3 million (prior-year period: CHF 623.1 million), which equates to a rise of 7.1% in the corporate currency. All regions contributed to this growth in local currencies: +14.0% in Asia/Pacific, +11.1% in Europe and +10.7% in the Americas. These increases are primarily attributable to sales price rises. In many customer segments, demand plateaued at pre-pandemic levels.

The conversion of local sales into the corporate currency reveals the trends of the individual currencies in combination with the respective geographical market presence of the divisions. Overall, Flooring Systems was harder hit by the negative currency effects than Movement Systems, with the pound sterling, the Swedish krona and the Turkish lira having a particularly significant impact. Overall, the currency-related decline in sales amounted to around CHF 27 million, which is largely attributable to the euro when viewed across the Group as a whole.

Flooring Systems reported sales growth of 12.9% in local currencies (7.8% in the corporate currency). Projects in the transport, retail, gastronomy, hotel and leisure facilities segments as well as in healthcare saw increased growth.

Movement Systems reported a sales increase of 8.3% in local currencies (5.5% in the corporate currency). The contributions of very diverse customer segments were evenly balanced. In the logistics segment, demand for extensions and new plants levelled off, whereas the maintenance and service business for online commerce continued at a high level.

Profitability impacted by strong increases in raw material prices
Negative currency effects and distinctly higher costs for raw materials, transport and energy, along with higher personnel and other cost increases, significantly impacted profitability compared with the prior-year period. Due to the proportion of the overall value chain including assembly and services accounted for by raw materials, the effect on Movement Systems was less marked than on Flooring Systems. Sales price rises reduced the scale of the impact, but there was a time lag before their effect was felt on sales, especially in Flooring Systems, due to the high proportion of project business.