German-based Wacker solutions reveals pandemic challenges in annual results
German-based industry solutions group Wacker Chemie, which produces a broad range of sector products, including gum and bakery ranges has reported annual sales of €4.69 billion, down 5% year-on-year amid the pandemic, reports Neill Barston.
While the Munich business conceded the dip in performance, it said the results were ‘in line with expectations’ and noted that there had been some signs of recovery in the latter stages of 2020.
However, as the company noted, Due to the coronavirus pandemic’s effects, the company’s sales contracted sharply in Q2 2020 as covid-19 hit all spheres of industry, which impacted on its sales volumes.
The past couple of years have seen notable expansion projects for the business, including opening offices in Shanghai, as well as its notable Candy2Gum 3D gum printing, which was claimed as a sector first on its release at ProSweets in 2017.
Its CAPIVA gum applications range include its C03 product, a ready-to-use premix for novel gum functions, through to CAPIVA® S, solid resins for gum base to enhance the manufacture of gum base. The product line complements its broad range of polyvinyl acetate solid resins for manufacturing gum base, marketed under the VINNAPAS brand to the chewing gum industry for more than 60 years.
The Group’s preliminary EBITDA (earnings before interest, taxes, depreciation and amortisation) amounted to €665 million for 2020 (2019: €783 million), a decrease of 15 percent. The decline was chiefly due to special income in 2019. That year WACKER had booked, under cost of goods sold, €112.5 million in insurance compensation for the damage incurred following the incident at its Charleston (USA) plant in 2017. Adjusted for this income, the year-over-year decline in EBITDA was 1 percent.
“Given the pandemic’s severe impact on the global economy, WACKER weathered last year very well,” said Group CEO Rudolf Staudigl. “The composition of our portfolio once again proved its worth in the present crisis, as we could at least partially offset weak-nesses in specific industries. Additionally, our efficiency program has had a successful start, already improving our earnings by more than €50 million in 2020.”