LIQUI MOLY records an 8% increase in sales in the first half of the year, despite the loss of the Russian market. LIQUI MOLY did not meet its revenue target.
Günter Hiermaier, who has been the motor oil manufacturer's sole Managing Director since February, is satisfied with the result in view of the global political situation: "I would have preferred an easier start to my new role. We hadn't overcome the effects of the pandemic – supply chain disruptions, rising raw material prices and freight costs – before the next disaster, the war in Ukraine, caught us by surprise. The decision to discontinue our Russian business has hit us hard economically. But it was the right one."
Günter Hiermaier had planned on a 10% increase for LIQUI MOLY in the first half of 2022. The actual result was 8% or an increase of €382 million.
Hiermaier commented in full:
“I’m satisfied with it, but not happy. We are struggling with extreme costs. Raw material prices are rising to unprecedented levels, which we unfortunately also have to pass on to our customers in some cases. The order situation is very good, never before have so many additives been produced in the first half of the year and yet unfortunately, due to the raw material situation, we have reserve orders amounting to millions. In addition, there is a shortfall of around €20 million in the first half of the year from the Russian business, which the company is waiving of its own accord.
Russia had been one of the company’s largest sales markets. Making up for this business was a huge feat. In addition, there were losses in the millions from the Chinese business, which almost came to a standstill due to the long lockdown in China. This is where our strategy of internationalization has really paid off. By exporting to 150 countries, we have spread our risk across a wide area and have been able to significantly increase our sales in other countries.
This includes, for example, its own subsidiaries abroad, such as in the USA (+70%) or in Spain and Portugal (+30%). However, other regions, such as North Africa (+24%), also brought good growth. The company now generates around 60% of its sales from exports. In the meantime, revenue is suffering significantly due to the enormous costs. It is remarkable that we achieved sales growth of eight percent in these disastrous circumstances. We owe this primarily to our loyal customers, our sales team and our colleagues in production."