Datwyler eyes acquisitions to build on delivery of profitable growth

Altdorf, Switzerland – Datwyler Group has seen an increase in 2021 sales and operating results, helped by ‘strict cost management’ and growth across all businesses.

The Swiss group reported an 18% year-on-year growth in operating profit (EBIT) to CHF234 million (€226 million), helped by a CHF58 million profit from the sale of online distributor Reichelt as well as “continual efficiency improvements and strict cost management.”

Sales for the full year came in at CHF1.1 billion, up 3.4% compared to last year.

During 2021, the Swiss group said it was able to “significantly increase” revenue from continuing operations in all business units, surpassing average growth rates in all the markets it serves.

With the divestment of Reichelt, Datwyler said it completed its strategic transformation into a focused provider of system-critical elastomer components in 2021.

“In the forthcoming phase, the company will focus on organic growth and targeted acquisitions so as to strengthen existing business sustainably,” it said.

The group said it had 'a strong balance sheet, highly distinctive core competencies and competitive advantages' to accelerate its growth strategy.

Furthermore, it said it will “continue to make acquisitions in order to open up new geographical markets, technologies or related product segments.”

Overall, Datwyler said it experienced high demand in 2021 due to its “strong positions in attractive markets” and “leading core competencies”.

Partnering with vaccine manufacturers, the group’s healthcare solutions segment reported a 16% growth in revenue, to CHF466.8 million, as it witnessed additional demand for components for Covid-19 vaccines.

Segment operating results rose 32% to CHF104.6 million, helped by “good utilisation” rates and “a positive change” in the product mix.

The business unit acquired China-based Yantai Xinhui Packing in December last year, which it expects will offer the group access to the growing healthcare market in China.

The group also said that it had identified ‘long-term structural growth drivers’, such as ageing societies and growing middle class in emerging markets, which will provide further potential for revenue growth in the healthcare segment.

In the industrial solutions segment, Datwyler increased revenue from continuing operations (excluding civil engineering) by 13% to CHF488.4 million.

Segment operating profit rose by 10.7% to CHF55.8 million, helped by higher utilisation rates.

Despite the growth, Datwyler said the slowdown in the car industry, which intensified in the second half of the year, prevented an improvement in the margin.

The group’s mobility business unit, nevertheless, acquired “record numbers of new projects and customers”.

Despite a high prior-year basis, the food & beverage business unit also recorded strong revenue growth for all customers in this area.

Here, Datwyler said the expansion of production capacities went to plan and will be continued in 2022.