Increased costs reduce Forbo's profitability
Forbo increased its sales in the first half of 2022 by double digits to 667.3 million francs. However, increased costs weighed on operating and net income. The margin on the operating result fell from 13.2 to 11.8 percent year-on-year.
According to a statement from Forbo , the internationally active manufacturer of floor coverings, construction adhesives, as well as drive and light conveyor technology from Baar, generated sales totaling CHF 667.3 million in the first half of 2022. In a year-on-year comparison, this corresponds to growth of 7.1 percent. The company attributes the increase primarily to the increase in sales prices. Forbo writes that the demand from many customer segments has now “leveled out at a pre-pandemic level”.
The company suffered declines in operating and net income. "Negative currency effects, significant increases in the cost of raw materials, transport and energy, as well as increased personnel and other costs have significantly reduced operating profitability," the statement said. At CHF 78.6 million, the operating result at EBIT level was 4.3 percent lower than in the previous year, and the corresponding margin fell by 1.4 percentage points to 11.8 percent. At CHF 60.3 million, consolidated profit was 5.0 percent below the previous year's figure.
Due to volatile markets and "a difficult geopolitical and financial situation", Forbo does not make any estimates regarding sales and earnings for the year as a whole. However, the company sees itself well prepared for the upcoming challenges.