Messer remains on course for growth: Strong increase in sales in all markets
- Industrial gases specialist presents key financial figures for the 2022 financial year
- Combined sales* above the 4-billion-euro mark for the first time
- Annual surplus significantly higher as well
- CEO Bernd Eulitz: “Once again, Messer has demonstrated the strength of its business model and sees great potential for further growth.”
With significant growth in sales and profits, Messer, the world’s leading privately held company specializing in industrial, medical and specialty gases, remained on course for growth in the 2022 financial year. The economic recovery that continued following the easing in restrictions in response to the pandemic led to an increasing demand for industrial gases in many of the markets of relevance to Messer. These effects were countered by high rates of inflation and geopolitical challenges.
In a political and economic environment that is still challenging, Messer increased combined sales* for the Messer Group and the Messer Industries joint venture by 19.6 percent in the past year, for a repeat in double-digit percentage growth. At EUR 4.16 billion,* Messer exceeded the 4-billion-euro mark for the first time. The annual result for the Messer Group, which also comprises pro-rata profit at Messer Industries, was higher as well and climbed nearly one-quarter to EUR 346 million.
As CEO Bernd Eulitz explained: “Messer has once again demonstrated the strength of its business model, which is focused on stability and sustainability. Once more, we have demonstrated that our broad regional and sectoral diversification puts us in a position to grow profitably – even under challenging conditions. We will continue along this path as we tap the vast potential we see for a consistently customer- and value-oriented company such as Messer in global competition.”
In 2022, Messer further increased its investments in expansion of its existing business and opening up fresh potential for profitable growth: Total investments* were around a fifth, or more than EUR 100 million higher and stood at EUR 625 million.
Dynamic sales growth in the regions
Messer Group’s business in China faced a difficult economic environment. There, severe pandemic restrictions and difficulties in the real-estate sector had a negative impact on demand in the steel industry and led to delays in new plant construction as well. The business trend was positive, however, with customers in other sectors, and in the field of specialty gases. Sales were thus fully 10 percent higher and finished the year at EUR 712 million; after adjusting for currency effects, sales were slightly higher than in the previous year. A strong trend in Vietnam in particular contributed to combined sales totaling EUR 848 million in China and the ASEAN region (2021: EUR 752 million).
Total proceeds in Central and Southeastern Europe were 22.7 percent higher in the financial year under report and stood at EUR 653 million. Among other effects, the commissioning of a new air separation unit (LZA) in the Czech Republic and a liquefier in Poland generated additional sales.
Messer’s business in Germany within the Messer Group – primarily Messer SE & Co. KGaA and two other corporate companies – comprises a sales volume of EUR 72 million. The decline of approx. 7 percent is mainly attributable to the fact that sales in the 2021 financial year were positively influenced by the conclusion of a major hardware sale.
The business activities of Messer Industries involve the following regions:
Revenues in North America rose to EUR 1.74 billion (an increase of 21.7 percent). With sales volumes holding predominantly steady, this growth owes to the passing-on of increased costs of sales to customers, and to positive currency effects.
Messer managed to pass along inflation-related added costs – for energy, for example – in Western Europe as well, which includes business operations in Germany. Sales for the Western European companies were around one-quarter higher and finished the year at EUR 489 million. Sales quantities remained largely constant. In the field of liquid CO2, however, these figures were higher due to the commissioning of two new plants in France and Belgium.
In South America, sales grew by around 21.5 percent and stood at EUR 360 million, with Brazil accounting for some two-thirds of this. In this region as well, the increase was also the result of passing increased energy prices along to customers. Appreciation in the Brazilian Real against the Euro had a positive impact in this regard as well.
The Annual Reports of Messer Group and Messer Industries will be available for download here soon.
* Sum of Messer Group and Messer Industries, which includes 100 percent of the at-equity holding Messer Industries.