Liqui Moly profits halved in 2020  

Liqui Moly’s turnover increased by 7.1 per cent to a record 611 million euro in 2020. The United Kingdom, where Liqui Moly more than doubled its sales, played a particularly important role in this. Given the devastating effects of the pandemic on the global economy and the decline in global consumption of oil and fuel, this is a great achievement. Revenue halved to 25 million euro – partly because the company invested almost 45 million euro in marketing measures during the crisis. In addition, more than 100 new employees were hired. This brings the total number of employees to 989 at the end of 2020.

Said Managing Director Ernst Prost; “We fought to set ourselves apart from our competitors. Despite a vigorous implementation of hygiene measures, protection concepts and working from home, we were there for our customers around the clock and increased our presence in all media enormously. The fact that we are growing is only the logical consequence of our actions.”

Thanks to the company’s solid starting position, with a balance sheet total of 208 million euro together with an equity position of 168 million euro and an equity ratio of over 80 per cent, the lubricant specialist had sufficient strength to make the necessary investments without borrowed capital and credit burdens. According to Prost, these investments have paid off: “Thanks to the course we took, we were able to make good gains by the end of the year.” At the same time, he affirms that Liqui Moly could have achieved a much higher sales increase. “We felt the ‘shortage economy’ in all areas, due to coronavirus, lockdown short-time work and working from home at our upstream suppliers. As a result, we experienced a noticeable decline in raw materials, packaging materials, labels, closures and also in the logistics and freight capacities,” he said.

Outlook

In 2019, July and August were record months with sales of almost 60 million euro each. Sales in November and December 2020 were also among the best in the company’s history. Prost is certain that the company will hold a very good starting position for 2021 and will be able to again reach or even exceed its sales records: “We’re reaping the rewards of our 2020 advertising push this year, and we’re going full throttle in 2021 as well.” The lubricant manufacturer is planning further investments, especially in its own logistics, to ensure continued growth.

Ernst Prost is optimistic: “Thanks to our energetic measures, we are continuing to grow and are still operating in the black. Our solid economic performance in recent years, with no bank debt, is helping us cope with the consequences of the crisis.”