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Q2 sales up for Liqui Moly but t

Liqui Moly Managing Director Gunter Hiermaier

Liqui Moly misses sales target despite 'significant' increase

ULM, July 21, 2022

German lubricant and additive producer Liqui Moly has recorded an eight per cent increase in sales amounting to €382 million ($391 million) in the first half of the year, but failed to meet its revenue target. The result was attributed to loss of the Russian market, increasing price of raw materials and other costs.
 
Gunter Hiermaier, Managing Director of the company, was satisfied with the result in view of the global political situation.
 
He said: "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." 
 
Hiermaier had planned 10 per cent more for Liqui Moly in H1 2022.
 
"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," he said.
 
He added: "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, the company saw losses in the millions from the Chinese business, which almost came to a standstill due to the long lockdown in China.
 
This is where the company's strategy of internationalisation has paid off. By exporting to 150 countries, Liqui Moly has spread its risk across a wide area and significantly increased its sales in other countries.
 
This includes, for example, its own subsidiaries abroad, such as in the USA, where sales increased more than 70 per cent; and Spain and Portugal (over 30 per cent). Other regions, such as North Africa (plus 24 per cent), also brought good growth.
 
The company now generates around 60 percent of its sales from exports.
 
"In the meantime, revenue is suffering significantly due to the enormous costs," Hiermaier said. --Tradearabia News Service



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