Due to consistently high customer demand, the Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a healthy indoor climate, is expecting to see a considerable increase in sales and profitability for the first half of 2021 compared to the same period of the previous year. The outlook for the year as a whole remains uncertain.
Strong result expected for first half of 2021
In the first few months of 2021, the Zehnder Group recorded consistently high demand for its products and systems for a healthy indoor climate in all key regions. Sales increased considerably in comparison with the same period of the previous year. Expenditure on product development and innovation was increased in order to bring new products to the market more rapidly. In addition, the Group continued to pursue a systematic strategy of optimising costs and improving efficiency. On the other hand, increasing purchase prices and delivery problems affecting certain suppliers are having a negative impact on profitability. Overall, the result for the first half of 2021 is set to be significantly higher than that achieved in the same period of the previous year. For the first half of the year, the Zehnder Group is expecting sales of EUR 340–348 million (previous year: EUR 284 million) and an operating margin of around 10% (previous year: 6.2%). The COVID-19 pandemic had a huge negative impact on the second quarter of 2020. As a result, comparing figures with the same period of the previous year is of limited use. However, growth is also expected in comparison with the same period of 2019. The Six-month Report will be published on July 28, 2021.
Outlook for the year as a whole uncertain
Due to the continuing COVID-19 pandemic, the outlook for the year as a whole remains subject to risks and uncertainties. The Zehnder Group expects that parts of the production and supply chain will continue to experience difficulties for some time to come. Furthermore, prices for raw materials are continuing to rise. For 2021 as a whole, the Zehnder Group is aiming to achieve a further improvement in profitability compared to the previous year. In the medium term, the Group is targeting average annual sales growth of 5 % and an EBIT margin of 8 –10 %.
The Zehnder Group improves quality of life with comprehensive indoor climate solutions. The globally active company develops and manufactures its products in 17 plants, including 3 in China and 3 in North America. Its sales activities, spanning more than 70 countries, take place through local sales companies and representative offices.
Zehnder Group products and systems for heating and cooling, comfortable indoor ventilation and air cleaning are characterised by outstanding design and high energy efficiency. The Group is among the market and technology leaders in its business areas with brands such as Zehnder, Runtal, Acova, Bisque, Greenwood, Paul, Core, Fortuneway, Enervent and Recair.
The Zehnder Group has had its headquarters in Gränichen (Switzerland) since 1895. It employs around 3300 people worldwide and achieved sales of EUR 618 million in 2020. The company is listed on the SIX Swiss Exchange (symbol ZEHN/number 27 653 461). The unlisted registered shares B are held by the Zehnder family and persons closely associated with them.