Innovation drives Bühler group’s improved 2021 annual performance, despite pandemic pressures
Industry equipment and solutions group Bühler has revealed that key systems innovation and applications were behind improved financial performance, with net profits (up 3.2% to CHF 113 million), and increased orders (up 16%, to CHF 3 billion), for 2021, reports Neill Barston.
The company’s turnover also stood marginally up, at CHF 2.7 billion, as the business looked to recover from a challenging pandemic-impacted period during the past two years, which has had a notable impact on a number of sectors including businesses serving confectionery and snacks markets.
However, the Swiss-headquartered business said the upturn in its results was down to securing timely delivery to customers under challenging conditions, as it sought to enhance its overall portfolio of industry equipment and systems.
Speaking at its annual presentation (pictured below), CEO Stefan Scheiber acknowledged that the past year had posed particular tests for the business, yet he remained optimistic as conditions regarding the pandemic appeared to be making positive progress.
He noted: “It was very important for us to be tied up when we look at the innovation eco-space with our partners like Givaudan, when I think of our international set-up with research and development labs. But when we also look at packaging solutions with Premier Tech and Co2 capturing energy solutions with Vyncke, and also what we did in new solutions for protein based production with the DiL, which helped us a lot. Internally, we also looked at our digital solutions including MyBühler and Bühler online, and our fantastic innovations in die casting and battery solutions has been really important as well,” explained the CEO, who also praised the work of its teams working on Haas products as also playing a significant role in maintaining the company amid testing conditions.
He continued: “Our engaged employees in our strong global network allowed us to prove our reliability to our customers and partners. And we clearly strengthened our innovation power,” says Bühler CEO Stefan Scheiber, who explained that the food, feed and mobility sectors in which it is active as a business had undergone major changes during the past two years, shifting with consumer demands that have been enabled with new technology.
Significantly, new types of chocolates, pralines, and various confectionary and snack products required new applications which the Bühler Consumer Foods segment. Also, Bühler’s Milling Solutions business grew in the wheat and rye and speciality segments, with processing solutions for high-capacity plants as well as for special applications for local niche markets.
Furthermore, the company said digitalisation and cloud-based services acted as key enablers to improve performances of existing assets of customers all over the world, and this also addressed the need for improved sustainability and CO2 emission reductions.
As a result, the company reported demand for sustainable solutions has clearly increased, and as part of its long-term innovation strategy, spendings on R&D over the last three years increased to more than CHF 400 million (2021: CHF 141 million, 5.2% of turnover). Bühler has positioned itself as a key enabler and partner for its customers, supported by collaborations with key partners in industry and science.
The company reported positive market demand in its food segment, including processing solutions for plant-based proteins or for dairy alternatives were in high demand and contributed to growth in Bühler’s Value Nutrition business.
On a group level, welcomed its order intake increase to CHF 3 billion, but noted that because of the time gap in the plant business between order entry and turnover, the upward trend on orders is not yet visible in turnover, which remained stable at CHF 2.7 billion.
The same is true for profitability, which amounted to CHF 146 million, reflecting an EBIT margin of 5.4%. Net profit amounted to CHF 113 million, also slightly better than last year. Orders on hand by year-end 2021 increased strongly by 27.2% to CHF 1.9 billion. “Our innovations, both for plants and services led to growth in our order book. Our strategy to position ourselves as an innovative solution provider for material transformation has been paying off,” says Stefan Scheiber.
Segment growth
All three business segments of Bühler contributed to this positive development. Grains & Food grew orders by 12% to CHF 1.8 billion, Consumer Foods by 6% to CHF 584 million; and Advanced Materials showed the strongest growth of 37% to CHF 620 million.
Notably, the business areas with the highest grow rates were Die Casting, Grinding & Dispersing, Grain Quality & Supply, and Milling Solutions. From a regional perspective, the Americas, Europe, Middle East & Africa, and India experienced the strongest upswing. China represented the single largest market for Bühler in 2021.
In total the company’s network now includes 30 factories, 103 services stations, and 24 Application & Training Centres across the globe was key to being successful in a very dynamic business environment. This allowed the business to secure on-time deliveries, also in times when supply-markets were difficult and logistic chains partly interrupted. In 2021, the company executed over 2,000 customer projects, and as part of this Bühler produced and delivered around 50,000 machines and key components. This was only possible thanks to the expertise and dedication of Bühler’s employees, and their focus on customer success.
In 2021, Bühler continued to prioritise the safety and wellbeing of all employees, while maintaining our focus on training and education. With nearly 12,500 staff across the globe, flexibility and resilience became key success factors in response to public health challenges and all related limitations. It remains committed to its global apprenticeship schemes, as well as wider company employee development.
“During the past two years of coronavirus crisis, we have learned to master the demanding environment with a strong purpose and value orientation, with a positive mindset, and a focus on innovation and on people,” says Stefan Scheiber. The upcoming Bühler Networking Days, which are planned to take place end of June 2022, underpin this positive mindset. “We look forward to again bringing decision-makers and partners from the global food, feed and mobility industries together. We would like to create positive, accelerated, and sustainable impact together with our partners.”
Board resignation
A few days before the results were released, at the general shareholders’ meeting of Bühler Holding AG, Clemens E. Blum resigned as a Member of the Board of Directors and Member of the Audit Committee.
He had been a Member of the Board of Directors and Member of the Audit Committee since 2015. He will focus on new mandates and is therefore no longer standing for re-election. Calvin Grieder, Chairman of the Board of Directors of the Bühler Group, on behalf of the shareholders, the Members of the Board of Directors, and the Executive Board, sincerely thanks Clemens E. Blum for bringing his profound knowledge of business and especially automation to Bühler over the past seven years.
