Datwyler posts strong 2021, seeks growth

ALTDORF, Switzerland—Datwyler Holding Inc. has seen an increase in 2021 sales and operating results, helped by "strict cost management" and growth across all businesses.

The Swiss group reported an 18-percent year-on-year growth in operating profit (EBIT) to $251 million (CHF 234 million), helped by a $63 million profit from the sale of online distributor Reichelt as well as "continual efficiency improvements and strict cost management."

Sales for the full year came in at $1.2 billion, up 3.4 percent compared to last year.

During 2021, the Swiss group said it was able to "significantly increase" revenue from continuing operations in all business units, surpassing average growth rates in all the markets it serves.

With the divestment of Reichelt, Datwyler said it completed its strategic transformation into a focused provider of system-critical elastomer components in 2021.

"In the forthcoming phase, the company will focus on organic growth and targeted acquisitions so as to strengthen existing business sustainably," it said.

The group said it had "a strong balance sheet, highly distinctive core competencies and competitive advantages" to accelerate its growth strategy.

Furthermore, it said it will "continue to make acquisitions in order to open up new geographical markets, technologies or related product segments."

Overall, Datwyler said it experienced high demand in 2021 due to its "strong positions in attractive markets" and "leading core competencies."

Partnering with vaccine manufacturers, the group's healthcare solutions segment reported a 16-percent growth in revenue, to $507 million, as it witnessed additional demand for components for COVID-19 vaccines.

Segment operating results rose 32 percent to $114 million, helped by "good utilization" rates and "a positive change" in the product mix.

The business unit acquired China-based Yantai Xinhui Packing Co. Ltd. in December last year, which it expects will offer the group access to the growing health care market in China.

The group also said that it had identified "long-term structural growth drivers," such as ageing societies and growing middle class in emerging markets, which will provide further potential for revenue growth in the health care segment.

In the industrial solutions segment, Datwyler increased revenue from continuing operations (excluding civil engineering) by 13 percent to $531 million.