The Group was able to carry this momentum over into the new year. Although the war in Ukraine has dampened hopes of continuing the positive development, the company believes it is well equipped for a difficult economic environment.

Endress+Hauser delivered 2.6 million measuring devices in 2021. "Our customers have placed a great deal of trust in us," said CEO Matthias Altendorf at the annual press conference in Basel. "They were able to rely on us after the outbreak of the pandemic. And we were a reliable partner when demand picked up again." Despite tight procurement markets and logistics chains, the company ensured the availability of materials worldwide and delivered on time.

Broad-based growth

In 2021, Endress+Hauser was not only able to build on the pre-corona period, but also significantly improve key figures. Net sales rose by 11.7 percent to 2.879 billion euros. Sales developed dynamically in Asia and America, and were solid in Europe. Africa was up, only in the Middle East did business, which is heavily dependent on oil and gas, decline. China increased its lead as the market with the highest turnover, ahead of the USA and Germany.

In 2021, incoming orders were once again a good five percentage points higher than sales growth. The company boss sees this as a catch-up effect, as well as an upturn in demand in almost all sectors. In process measurement technology, modern analysis methods and the digitalization of the industry provided impetus. In the laboratory business, which had been boosted by demand for PCR diagnostics in 2020, the subsidiary Analytik Jena achieved stronger growth with products for chemical analysis.

Training offensive and focus on sustainability

At the end of 2021, 15,117 people were working for the family-owned company worldwide, 663 more than a year ago. New jobs were created in production in particular. Almost all trainees received a job offer after completing their apprenticeship. Endress+Hauser intends to significantly increase its commitment to training once again and double the number of apprentices, students and interns in the coming years.

In the independent sustainability audit by EcoVadis, Endress+Hauser improved by four points to 76. This puts the company in the top one percent of its peer group. The position of Corporate Social Responsibility Officer has been created at Group level. The new officer will be responsible for further developing the sustainability strategy and driving its implementation forward.

Many innovations, high investments

Of the more than 70 product innovations in the past year, many are related to the topic of digitalization. Endress+Hauser spent 213.4 million euros, around 7.4 percent of turnover, on research and development in 2021, 9.4 percent more than in the previous year. 258 initial applications to patent offices around the world testify to the Group's innovative strength. The property rights portfolio comprises a total of 8,600 active patents and patent applications.

Endress+Hauser invested 192.8 million euros in 2021 (6.4 percent less than in the previous year). The company has just moved into new buildings in Reinach, Switzerland. Work is still underway at the production sites in Gerlingen and Waldheim in Germany and Aurangabad in India. The largest new projects relate to production in Maulburg, Germany, and a plant in Suzhou, China. The Sales Centers in Mexico and Finland are constructing their own buildings; the subsidiaries in Australia and Argentina are purchasing buildings.

Above-average profit growth

Exchange rates had only a minor impact in 2021, according to the report by CFO Dr. Luc Schultheiss. The loss in value of the euro cost 0.5 percentage points of turnover. Although expenditure on materials, logistics and personnel increased, the costs for business trips, customer support and trade fair appearances remained below the level of previous years due to the coronavirus pandemic. As a result, operating expenses grew at a below-average rate overall; the operating result (EBIT) rose by 28.8% to 434.0 million euros.

Profit before tax (EBT) improved by 37.4% to 463.8 million euros, partly because the financial investments generated a good return last year. The return on sales (ROS) climbed by three points to 16.1%. Due to a lower tax rate, earnings after tax grew by 40.0% to 356.8 million euros. The equity ratio reached 79.1%, an increase of 2.1 percentage points. The family-owned company is practically free of bank debt.

War in Ukraine overshadows outlook

Endress+Hauser started the current year with a record-high order backlog; in the first quarter, incoming orders were above plan. The Group had expected growth in the upper single-digit percentage range in 2022. However, it is now uncertain whether this target can be achieved. "Russia's attack on Ukraine has changed everything," said Matthias Altendorf. "It is causing suffering for millions of people and affecting many societies at a time when the pandemic is far from over."

Endress+Hauser stopped all deliveries to Russia as soon as the invasion began. "We will comply with the sanctions in full," emphasized the company boss. "At the same time, we have a responsibility to our employees and customers in Russia." 182 people work in the Sales Center there. The Group intends to continue supplying companies that supply civil society and are not subject to the sanctions - for example in the food industry, life sciences or the water and wastewater sector.

Strong cohesion within the company

"The important thing is not whether we achieve our financial targets under all circumstances - but that we continue to provide our customers with the best possible support in this situation," emphasized Chairman of the Board of Directors Dr. h. c. Klaus Endress. The Board of Directors and shareholder family have confidence in the people and management of the Group. "We will stick together in the company and be there for our employees. Together, we will get through these challenging times well and continue to be a reliable partner for our customers."