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Source: LIQUI MOLY announcement
ULM, Germany – LIQUI MOLY, the German oil, brake-fluid and additive producer, posted a 7.1 percent increase in sales in 2020 (when compared to 2019) to €611 million, but, due to a major investment program, saw earnings decline by 17 percent during the same period.
U.S. and Canadian sales rose by 17 percent last year.
Earnings, however, fell significantly due to a multi-million Euro investment program. Managing Director Ernst Prost is nevertheless optimistic.
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Pandemic Does Not Hinder LIQUI MOLY
“Thanks to our energetic measures, we are continuing to grow and are still operating in the black,” he said. “Our solid economic performance in recent years, with no bank debt, is helping us cope with the consequences of the crisis.”
The company invested almost €45 million in marketing measures during 2020. In addition, more than 100 new employees were hired, bringing the total number of employees to 989 at the end of 2020.
“We fought to set ourselves apart from our competitors,” said Prost. “Despite a vigorous implementation of hygiene measures, protection concepts and working from home, we were there for our customers around the clock and increased our presence in all media enormously.
“The fact that we are growing is only the logical consequence of our actions.”
Thanks to the company’s solid starting position, with a balance sheet of €208 million euro together with an equity position of €168 million and an equity ratio of over 80 percent, the lubricant specialist had sufficient strength to make the necessary investments without borrowed capital and credit burdens.
According to Prost, these investments have paid off: “Thanks to the course we took, we were able to make good gains by the end of the year.”
At the same time, he affirms that LIQUI MOLY could have achieved a much higher sales increase.
“We felt the ‘shortage economy’ in all areas, due to coronavirus, lockdown short-time work and working from home at our upstream suppliers,” he said. “As a result, we experienced a noticeable decline in raw materials, packaging materials, labels, closures and also in the logistics and freight capacities.”
Good growth across all segments
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Overall, all divisions of the full-range supplier were successful. In the core business of the company, motor oils, sales increased by 6.4 percent. The fact that people are, of necessity, traveling less and spending more leisure time at home is also reflected in the increase in sales of products for motorcycles, bicycles and boats.
The entire announcement can be read by clicking HERE.
