Half-year results 2021 (January – June 2021) of the Swiss EMS Group

Course of Business

  • Pleasing course of business
  • Net sales and net operating income at new record levels
  • Recovery of global markets after COVID-19
  • Delivery bottlenecks in supply chains
  • Shortages of raw materials with rising prices

The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG and globally active in the business areas High Performance Polymers and Specialty Chemicals, increased net sales to CHF 1,166 million (845) and net operating income (EBIT) to CHF 321 million (227) in the first half year of 2021. These figures are well above those of the previous year and, due to currency influences, are new record levels in the 85-years of company history.

Compared to the previous year, consolidated net sales rose by 37.9 % to close at CHF 1166 million (845). After the slump caused by COVID-19, the global economy recovered noticeably, which had a positive influence on sales volumes. Strong growth could be achieved, in particular in the Chinese sales market. Significant state support and stimulus measures, above all in the USA, are generating confidence having a positive effect on consumer spending. Sudden surges in demand and delivery bottle necks in supply chains are forcing the automotive industry to reduce production. Shortages in the raw material markets and logistic capacity are causing prices to rise continuously.

During the pandemic, EMS continued to pursue ongoing development and generation of new business. With the successful strategy of speciality products in the main area of High Performance Polymers, EMS is in a good position to make use of all possible opportunities in the market. Expanded production capacity and local inventory stocks safeguard the delivery capability of all EMS companies, even with current high demand. Raw material shortages and corresponding continually rising prices are forcing EMS to implement sales price increases for customers.

Net operating income (EBIT) amounted to CHF 321 million (227), which is 41.6 % above previous year. Compared to the previous year, operational cash flow (EBITDA) increased by 37.5 % to CHF 349 million (254). The EBIT margin rose to 27.5 % (26.8 %), the EBITDA margin reached 29.9 % (30.0 %). Strong sales development and the strong position with speciality products influenced the result development and the result margin in a positive way. This was hampered, however, by strongly rising raw material prices which made sales price increases for customers inevitable.

At the ordinary Annual General Meeting of the EMS-CHEMIE HOLDING AG on August 7, 2021, the current members of the board, Bernhard Merki (as Chairman of the Board and Member of the Remuneration Committee), Magdalena Martullo (as Member of the Board), Dr. Joachim Streu (as Member of the Board and Member of the Remuneration Committee), and Christoph Mäder (as Member of the Board and Member of the Remuneration Committee) will be proposed for re-election. Ernst & Young AG, Maagplatz 1, 8010 Zurich, will be proposed for re-election as Statutory Auditor. At the Annual General Meeting, the Board of Directors will propose a dividend payment of total CHF 17.00 (20.00) per share.

Outlook 2021

For the business year 2021, EMS is expecting further economic recovery worldwide. The state stimulus programmes and low interest rates will come into their full effect and provide support for consumer spending and investment activities worldwide. Continuing instability, bottlenecks and price increases in global supply chains must, however, still be expected. The shortage of semi-conductors in the automotive industry will continue.

EMS will continue to follow its successful strategy of speciality products in the main area of High Performance Polymers. Customer demand for innovative products, solutions achieving weight savings and lower CO2 emissions as well as cost reduction through metal replacement, is continually growing. This allows EMS to develop new business and further strengthen market positions. Innovative development expertise in close cooperation with customers enables EMS to quickly recognise market developments and to adapt flexibly to them.

Based on a comprehensive number of new and innovative customer projects, EMS is confident to further expand business in the next years. In order to satisfy this increasing market demand in future, EMS will invest in additional capacity increases. Over the next five years, EMS will invest more than CHF 300 million in expansion of the production site at Domat/Ems (Canton Grisons, Switzerland).

For 2021, EMS continues to expect higher net sales and a higher net operating income (EBIT) than in the previous year.