Jungheinrich Creates Sustainable Value and Reports Record Results

Jungheinrich presents its financial figures for the year 2021 today during its balance sheet press conference. Despite the COVID-19 pandemic and strained supply chains, the company reports record results in order intake, revenue, and profit. For the current year 2022, the company expects continued profitable growth despite increasing risks and high economic uncertainties, although with less dynamism than originally planned. In this context, the company published its forecast for 2022 in an ad-hoc announcement on March 24.

(Hamburg) Jungheinrich looks back on the most successful financial year in its corporate history. Despite ongoing restrictions on economic activities and persistent challenges in supply chains due to the COVID-19 pandemic, order intake and revenue of the Jungheinrich Group increased in 2021 more than initially projected. “We are very satisfied with the course of the financial year 2021,” says Dr. Lars Brzoska, CEO of Jungheinrich AG. The target corridors for order intake and revenue, which were already raised during the year, were exceeded in light of the continued very strong demand for Jungheinrich’s products and services. Order intake reached a record value of 4.87 billion euros. The group revenue also recorded a historic peak of 4.24 billion euros. EBIT improved significantly, exceeding the previous year’s value by 142 million euros at 360 million euros, representing an increase of 65 percent. The EBIT margin also significantly surpassed the previous year’s value, rising to 8.5 percent. EBT stood at 349 million euros, with an EBT margin of 8.2 percent. “We started the financial year 2021 with the ambition to grow profitably even during the pandemic and to create sustainable value. We succeeded in this,” says Dr. Brzoska.

Dividend at Historic High

Just like the previous year, the COVID-19 pandemic also had significant impacts on global supply chains in 2021. For this reason, considerable efforts were still necessary to secure Jungheinrich’s material supply. However, through targeted and successful supply chain management, the company was able to largely prevent production downtimes in its plants. Thanks to successful efficiency measures and appropriate price adjustments, cost increases were successfully compensated. In this context, the board of Jungheinrich AG proposes to the annual general meeting on May 10, 2022, to distribute a dividend of 0.66 euros per ordinary share and 0.68 euros per preferred share. This corresponds to an increase of 61 percent and 58 percent, respectively, compared to the previous year. The dividend thus rises to its historic high.

Economic Risks Intensified

Since February 2022, overall economic risks have significantly intensified. The Russian war of aggression against Ukraine is noticeably affecting not only business with the affected countries but also significantly increasing uncertainties for economic development across Europe and beyond. Nevertheless, the board of Jungheinrich AG fundamentally expects good market demand and thus further profitable growth for the group, as the company already communicated in an ad-hoc announcement on March 24. For order intake, the board currently anticipates a slight decline compared to the previous year. For group revenue in 2022, a value slightly above the previous year is expected, given ongoing bottlenecks in supply chains. EBIT and EBT are expected to reach values that are significantly below the previous year’s figures. The margins for EBIT and EBT are also expected to be significantly lower compared to the previous year.

Further Increase in Material Costs

Regarding the development of material costs, the company expects further noticeable increases during the course of 2022, starting from an already very high level. The forecast does not yet take into account further negative effects of the war, which cannot be conclusively assessed. “A precise assessment of how the war in Ukraine and the sanctions against Russia will affect our business cannot be made at this time due to the rapidly changing circumstances. We are working intensively to assess potential impacts on a current basis and to develop plans for both the near and medium- to long-term future,” explains Dr. Brzoska.

Consistent Continuation of Corporate Strategy 2025+

With the goal of creating sustainable value for all stakeholders, Jungheinrich continues to implement its corporate strategy 2025+ consistently. In 2022, an expansion of personnel capacities is planned, particularly in the strategic fields of action: automation, digitalization, energy systems, efficiency, global footprint, and sustainability. In 2021, Jungheinrich reviewed and adjusted the target figures of the strategy. Accordingly, the group revenue is to grow organically to 5.5 billion euros by 2025, and the target EBIT margin is to be in a corridor between 8 and 10 percent. Outside of Europe, a revenue share of 20 percent is targeted.

Photo: © Jungheinrich