The Würth Group has looked back on what it deems a 'reasonable' first half of the year despite impacts of the coronavirus pandemic, seeing sales dip slightly by 3.1% to €6.9 billion over the same period last year.
The Group's e-business share increased by 20% during the period as a result of its structural shift towards digital channels through its online shops, app and e-procurement.
"Considering the current backdrop of a global pandemic, we are more than satisfied with this relatively stable development," said Robert Friedmann, Chairman of the Central Managing Board of the Würth Group. "Due to the skilled trades being regarded as essential businesses and our successful establishment of a digital infrastructure in ordering and supply processes in previous years, we were always able to deliver and did not suffer any supply bottlenecks."
In Germany, the Würth Group generated sales of €2.9 billion, a negative growth of 0.5%, with the Group profiting from the fact the construction industry still posted growing sales in the first few months of the year, Friedmann continued. "As an automotive supplier, on the other hand, we do feel the effects from the still suffering automotive industry," he said.
Adolf Würth GmbH & Co. KG, the original parent and largest company of the Würth Group, generated sales of €1,061 million including intragroup sales in the first half of 2020, up 2.5%.
Despite the global impacts of Covid-19, Würth Group companies were able to celebrate successes through their e-business channels, especially those in countries heavily affected by the pandemic such as Italy, France and Spain. In particular, Würth France posted e-business growth of 27.8% in the first half of the year. The Group attributed much of this success to its contactless procurement solutions, online shops, and the Würth app.
Meanwhile, in the first half of 2020 global sales in the Construction Division grew 9.2% over the same period last year, driven by continuing strong demand in the sector. Companies in Group's Electrical Wholesale business unit reported 13.7% growth, remaining largely unaffected by the crisis.
However, the operating result at the end of the H1 2020 (€280 million) of the Würth Group is significantly down on the previous year (€340 million).
"This is a setback we have to deal with," Friedmann acknowledged. "Still, considering the circumstances, we are quite satisfied with these results. Now, we are pursuing all our options in terms of sales activities and cost management to make sure we are able to turn this crisis into an opportunity."
The number of employees across the Würth Group was reduced by 603, from 78,686 at the end of 2019 to 78,083 in the first half of 2020.
