Source: LIQUI MOLY announcement
ULM, Germany — LIQUI MOLY not only closed 2021 with record sales of €733 million. Earnings before taxes also soared to €38 million – an increase of a good 40 percent.
“This is a great result for a difficult year, but it is still a long way from the level we had before the pandemic,” said Managing Director Ernst Prost at the presentation of his last financial statement.
The leap in profit is the result of the countercyclical investment strategy in 2020. Back then, in the midst of the rampant pandemic, when many companies were massively cutting their expenditures, LIQUI MOLY decided to do the opposite. Investments, especially in marketing, were increased sharply.
Turnover Up Sharply for LIQUI MOLY in 2021
While this approach had an impact on earnings, it also provided a strong boost to brand awareness around the world. The effect was further strengthened by the simultaneous restraint of many competitors. This led to a strong increase in demand. In 2021, LIQUI MOLY’s turnover increased by 20 percent to 733 million euro, more lubricants were produced than ever before at 105,000 tons, and the number of employees reached a record high of 1008.
“Where many workers at other companies went on short-time work, we increased the number of employees and created new jobs,” reports Ernst Prost.
As in previous years, the increase in sales was greater in the export business (+30 percent) than in the saturated domestic market of Germany (+13 percent). The strong increase of 50 percent in the most important export market, the USA, also helped.
Growth was also disproportionately high in other countries where LIQUI MOLY has its own subsidiaries, such as Portugal and Spain (46 percent), Italy (101 percent) and Australia (47 percent). LIQUI MOLY now exports around two thirds of its turnover.
In Germany, the restructured filling station business and the car accessories trade in particular made gains.
To view the entire announcement, click HERE.