Danfoss Announces Best Half-Year Results Ever
In the first half of 2021, Danfoss sales grew to EUR 3.3 billion – a growth of 18% in local currency. Danfoss saw extensive growth in all regions, despite some parts of the world are still affected by the COVID-19 pandemic. The company continued significant investments in innovation (R&D), amounting to 4.7% of sales. At the same time, Danfoss delivered a 45% increase in operating profits with EBITA of EUR 449 million – an operating profit that even outperformed the strong level of the first half of 2019, pre-COVID. Net profit was up 74%, amounting to EUR 286 million.
“I am very proud to present the best half-year results ever. We reported record level topline, profitability and cash flow. At a time when the effects of climate change are increasing, as per the recently published IPCC climate change report, Danfoss is taking the lead in the transformation towards a carbon neutral future. Our unmatched innovation and R&D capabilities and our ready-to-use energy-efficient, low emission and electrification solutions are enabling the green transition,” said Kim Fausing, President & CEO - Danfoss.
“With these strong results, we are ready for the second half of the year. It’s exciting to close the Eaton Hydraulics acquisition and welcome our 10,000 new colleagues. We have just begun our journey together – two talented and highly competent teams joining forces to become an even stronger technology partner for our customers and distributors,” he added.
Danfoss in India region has recorded an extremely strong sales growth in H1 2021, driven by increasing demand for its products and service. Expanding sales footprint, increasing channels, robust recovery in Tier II & III cities, coupled with innovative applications and localization initiatives, is driving this momentum. The demand for energy efficiency, energy storage and electrification portfolio, is leading our sales.
Danfoss India is quite bullish on crossing INR 2,000 crores turnover by the end of the year with capex cycle pickup in core Industry and PLI schemes launched by the Govt of India. This growth is supported by its strong employee base across the country, which has crossed 2000+ this year.
“India is an important market with significant growth potential for Danfoss. We continue to invest in the country and cater to the evolving needs of our customers. With good results witnessed across all our segments, we are quite confident about ending the year on a high note. Our aim is to establish India as one of the top 5 markets for Danfoss globally, in the coming years”, said Ravichandran Purushothaman, President - Danfoss India.
“Like other companies in the world, we have seen challenges in our supply chain due to holdups in logistics, shortages of electronic components and price increases on freight and raw materials. Across our businesses, we continue to do everything we can to serve our customers and ensure a minimum of impact. At the same time, I want to thank all Danfoss colleagues for the outstanding teamwork and resilience they demonstrate in navigating the challenges of the pandemic. I am extremely proud of how we continue to keep health and safety top of mind to protect our people, communities and customers while also securing our growth strategy,” Kim Fausing concluded.
Key figures for first half of 2021
Sales increased 14% to EUR 3,265 million (H1 2020: 2,864m), corresponding to 18% growth in local currency.
Operating profit before acquisition-related amortization (EBITA) increased by 45% to EUR 449 million (H1 2020: 309m). The EBITA margin increased to 13.8% (H1 2020: 10.8%).
Net profit was EUR 286 million (H1 2020: 164m), 74% better than in the first half last year.
Cash flow from operating activities before M&A increased to EUR 63 million (H1 2020: EUR 33m).
Investments in innovation (R&D) reached a high level of EUR 154 million (H1 2020: 130m), corresponding to 4.7% of sales (H1 2020: 4.6%).