Würth Group continues to grow

• Sales growth by 4.8 percent to new record level of EUR 14.27 billion

• The operating result decreases to EUR 750 million

According to the preliminary annual financial statement, the Würth Group reported a sales volume of EUR 14.27 billion in 2019 (previous year: EUR 13.62 billion). This corresponds to a growth of 4.8 percent. Adjusted for foreign currency effects, growth comes to 4.2 percent.

Sales developed in an unusually heterogeneous way in 2019. The different development of both the individual regions and individual business units of the Group reflects this. In Germany, sales growth was rather modest, at a rate of 2.1 percent. This is above all due to the struggling automotive industry. The development of business units such as the Würth Elektronik Group or manufacturing and tool trading companies, all serving to customers in this industry, was affected as a result. These units reported declining sales in 2019. Contrary to that, Adolf Würth GmbH & Co. KG, parent company of the Würth Group and German sales organization of the Würth Line, was able to report growth of 5.8 percent.

The Group achieved sales growth of 6.8 % outside of Germany. Satisfactory growth rates were achieved in Southern Europe (15.3 percent; 4.9 percent if adjusted for acquisitions), South America (8.0 percent) and Eastern Europe (6.6 percent).

The Electrical Wholesale companies even grew at double-digit rates, in part thanks to the acquisition of Grupo Electro Stocks S.L.U., a leading Spanish electrical wholesaler, in 2019.

E-business sales experienced above-average growth and amounted to EUR 2.6 billion in 2019, thus increasing their share in overall Group sales to 18.3 percent.

Operating result

According to preliminary figures, the operating result of the Würth Group amounts to EUR 750 million, and is thus 13.8 percent below the previous year (2018: EUR 870 million). This decline is mainly due to the gross profit margins being under pressure. It was not possible to entirely pass on increased purchasing prices to customers in the market. Furthermore, the Würth Group continued to invest in the expansion of its business model and growth initiatives.

Employees

The number of employees rose by 1,606, from 77,080 to 78,686 in 2019. In Germany, the number of employees amounts to 24,344 corresponding to an increase of 2.4 percent. The Group currently has 33,979 sales force employees on the payroll.

Milestone achieved at Adolf Würth GmbH & Co. KG: EUR 2 billion in sales.

Adolf Würth GmbH & Co. KG, established in 1945, reports a sales record of more than EUR 2 billion. In 2019, the Group's parent company generated a sales volume of EUR 2.09 billion. “There’s no better motivation for our anniversary year in 2020: Adolf Würth GmbH & Co. KG will have its 75th company anniversary and Professor Würth will turn 85—what a magnificent present!” says Norbert Heckmann, Chairman of the Management of Adolf Würth GmbH & Co. KG, who is delighted by this milestone.

Outlook

“The general economic forecasts remain cautious, which is why the Würth Group expects mid-single-digit sales growth and an operating result increasing proportionally to this,” says Robert Friedmann, Chairman of the Central Managing Board of the Würth Group, explaining the expectations for the new business year. “Certainly, any political tensions and tariff disputes are disruptive factors, as they have strong repercussions on foreign trade and thus exports. This is where we have to pool our forces to still be able to grow despite these adverse conditions.”

The next press conference on the Würth Group’s annual financial statement will be held at Kunsthalle Würth in Schwäbisch Hall on 7 May 2020.