30.06.2021 | Umdasch Group in Covid year 2020 - stable result in spite of decrease in revenue
• Consolidated group revenue € 1.411 billion
• Result before taxes € 81 million
• Operative profit + 4.4 %
• Number of employees - 0.19 %
In 2020, the international Umdasch Group recorded consolidated revenues of € 1.411 billion. The 7 % decline in revenue compared to the previous year is due to a Corona-related temporary stop of many construction sites of the formwork division Doka in spring 2020. This decline is also reflected in the result. Umdasch The Store Makers did not record a decrease in revenue thanks to a good economic situation in the food retail sector.
After an excellent Q1 2020, the first lock-down at the end of March brought the global construction business to an abrupt standstill: due to the health-related crisis, many construction sites were stopped abruptly. Although the USA and Europe quickly adapted to the changed conditions and projects were restarted in the following weeks, markets such as Latin America and Asia were severely restricted for months. This had a significant impact on Doka's business in the Q2 and Q3 of 2020.
At umdasch The Store Makers, the situation showed a similarly diverse picture, but by sector. While Food Retail and Digital Retail performed disproportionately well, investments in Lifestyle Retail (fashion) and Premium Retail (luxury and airports) were not realized, stopped or cancelled. In total, this led to an almost identical revenue for The Store Makers compared to 2019.
On a consolidated basis, this means not only a decrease in revenue for the Umdasch Group but also a decline in result from € 105 million in the reporting year 2019 to € 81 million in 2020. As a result of balanced cost management including rapid liquidity and structural measures, it was possible to increase operational profit by + 4.4 %. Due to proactive working capital management, operative cash flow almost tripled to € 307 million. In the same period, the equity ratio reached a historic level of 61.4%.
The average number of employees changed in the reporting period from 8,810 (2019) to 8,793.
Setting the course with three acquisitions
Besides managing the Corona crisis, the signs in 2020 were already pointing again to future competitiveness and sustainable investment. Doka acquired a stake in the American scaffolding manufacturer AT-PAC. For the Formwork Experts, this means not only a new pillar of business but also the entry into a new customer segment. In the future, for example, customers will include the oil or gas industry, but also the petrochemical sector. Also new customers as well as a competitive production were brought on board in 2020 by umdasch The Store Makers by means of a majority shareholding in the Turkish shopfitter Madosan, a company specializing in metal and heavy-duty shelving. And Umdasch Group Ventures also entered into a new shareholding in 2020: With an investment in the Graz-based start-up shopreme, which focuses on the digitalization of the stationary shopping process.
Integrated Reporting includes sustainability
Since 2019, the Umdasch Group has been reporting in an integrated manner. This means that all company-relevant processes are reviewed and adjusted with regard to their sustainability and future readiness. For example, Doka has created a Product Carbon Footprint of its approximately 6,000 products for the first time in its history. 16 sustainability indicators are linked to the topics of innovation, finance, products, people, social issues and nature, and from this year onwards will report transparently on progress in their respective areas. The Umdasch Group as a concern applies a coherent sustainability strategy, which is implemented by its divisions through targeted operational measures worldwide.
Outlook for 2021
The outlook for the 2021 financial year is very positive following a pleasing first half. Strong investment activity is also expected this year. Revenues and results at the pre-crisis level of 2019 appear achievable at the present time. Uncertainties mainly lie in the global shortage of raw materials such as wood and steel as well as further regional lock-downs in countries with low vaccination coverage and high Corona infection rates.
Dual generational change
There will be a generational change both in the Umdasch Group and in the formwork division Doka as of 1 July 2021. As already announced, Wolfgang Litzlbauer will take over as President of the entire group. Andreas Ludwig will remain associated with the company as a member of the Supervisory Board of Doka and umdasch The Store Makers and will furthermore take over the responsibility for Corporate Relations. At Doka, Robert Hauser, who has been Regional Manager since 2018 and later became a Member of the Doka Management Board, will take the place of Harald Ziebula, who is retiring, on July 1, 2021.
The Umdasch Group AG at a glance
The internationally successful Umdasch Group AG, with its corporate divisions Doka and umdasch The Store Makers, is active in around 70 countries at more than 170 locations. Since 2017, the Group has been participating in future-oriented, primarily disruptive innovations in the field of construction and retail with its third division Umdasch Group Ventures. The family-owned company employs around 8,800 employees worldwide and, with revenue of € 1.411 billion in 2020, is one of the key players in the industrial sector. In addition to strong internationalization, the focus is on constant innovation. Currently, 86 % of the revenue is generated outside Austria.