Jungheinrich creates sustainable value and generates record earnings for 2021

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Jungheinrich is presenting the financial figures for 2021 at its balance sheet press conference today. Despite the coronavirus pandemic and strained supply chains, the Group saw record figures for incoming orders, revenue and profit. Despite increasing risks and higher economic uncertainty, the company expects continued profitable growth in the current year, albeit with less momentum than originally planned. Against this background, the company published its forecast for 2022 in an ad hoc announcement on 24 March.

 

Jungheinrich can look back on the most successful financial year in the company’s history. Despite ongoing restrictions in business activities and continued challenges posed to supply chains by the coronavirus pandemic, the Jungheinrich Group’s incoming orders and revenue rose more sharply in 2021 than initially forecast. “We are very pleased with the course of business in the 2021 financial year,” says Dr Lars Brzoska, Chairman of the Board of Management of Jungheinrich AG. The forecast target ranges for incoming orders and revenue, which had already been corrected upwards during the year due to continuing strong demand for Jungheinrich products and services, were exceeded. Incoming orders reached a record figure of €4.87 billion. Group revenue also saw a historic high at €4.24 billion. EBIT improved significantly and, totalling €360 million, exceeded the previous year’s value by €142 million, or an increase of 65 per cent. EBIT ROS also topped the previous year’s value, increasing by 8.5 per cent. EBT came to €349 million. EBT return on sales amounted to 8.2 per cent. “We started the 2021 financial year with the aim of growing profitably even in the pandemic and create sustainable value. We succeeded in that,” says Dr Brzoska.

 

As in the previous year, the coronavirus pandemic had a significant impact on global supply chains in 2021. For this reason, the company continued to put a great amount of effort into securing materials for Jungheinrich. However, the company was able to continue avoiding production standstills at its plants through targeted, successful supply chain management. It was also able to compensate for cost increases thanks to successful efficiency management and appropriate price adjustments. Against this background, the Board of Management of Jungheinrich AG will propose a dividend payout of €0.66 per ordinary share and €0.68 per preferred share to the Annual General Meeting on 10 May 2022. This equates to an increase of 61 per cent and 58 per cent compared with the previous year and also represents a historic value for the dividend.

 

Since February 2022, macroeconomic risks have massively increased. The Russian invasion of Ukraine is having an impact not only on business with the countries concerned themselves, but is also significantly increasing the uncertainties for economic development throughout Europe and beyond. Even so, the Board of Management of Jungheinrich AG generally expects to see good market demand and therefore assumes that the Group will continue to grow profitably, as the company shared previously in an ad hoc announcement on 24 March. The Board of Management currently expects to see incoming orders slightly below the level of the previous year. Group revenue for 2022 is expected to be slightly above the previous year’s value with ongoing bottlenecks in the supply chains. EBIT and EBT are both expected to have a value significantly below that of the previous year. The rates of return for EBIT and EBT could then also be lower compared with the previous year. In terms of developments in the cost of materials, the company anticipates – starting with the current high levels – further noticeable increases over the course of 2022. Other negative effects of the war that are currently not foreseeable were not taken into consideration for the forecast. “It’s still too early for a precise assessment of how the war in Ukraine and the sanctions against Russia will affect our business, since the situation is changing rapidly. We are working intensively to assess potential effects on an up-to-date basis and to develop plans for the near and mid- to long-term future,” explains Dr Brzoska.

 

With the aim of creating sustainable value for all stakeholders, Jungheinrich will continue to consistently implement its corporate strategy 2025+. To this end, the company is planning an increase in personnel capacities in 2022, especially in the strategic fields of automation, digitalisation, energy systems, efficiency, global footprint and sustainability. Jungheinrich reviewed and adjusted the targets of the strategy in 2021. As a result, Group revenue is expected to grow organically to €5.5 billion by 2025 and EBIT return on sales (EBIT ROS) to come in between 8 and 10 per cent. The aim is to see a share of revenue from outside Europe of 20 per cent.

 

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