Independent lubricants blender Fuchs Petrolub SE reported a 9% increase in net profit and a 16% uptick in sales revenues for the first quarter, compared to the same period last year, driven by adjustments in prices.
The Mannheim, Germany-based company recorded earnings after tax of €73 million (U.S. $80 million) for the quarter ended March 31, improving from €67 million.
“The necessary price adjustments in the course of 2022 due to sharply rising raw material costs and high inflation rates take effect and enable an increase in gross profit year-on-year and also cover the inflation-related cost increases, particularly in the areas of energy, personnel and freight costs,” Fuchs Petrolub Chairman of the Executive Board Stefan Fuchs said in the company’s earnings press release.
Sales revenues in the first quarter reached €963 million, compared to €808 million. Sales development was price-driven in the quarter overall and regionally, the company noted in its earnings presentation.
In Europe, Middle East and Africa, sales revenues rose 15% to €552 million, attributed to higher prices. Almost all its entities in the region experienced double-digit, year-on-year percentage growth rates in sales in the quarter, the company said, with particularly high increases in Germany, Great Britain, South Africa, Sweden and Poland.
In Asia-Pacific, sales increased 6% to €252 million, driven by prices, despite negative currency effects. Fuchs noted that results in China – after ending its zero-Covid strategy – remained below sales in the year-earlier period, while Australia posted the highest sales growth contribution.
In North and South America, sales revenues jumped 28% to €181 million, due to price increases and positive business development.
“Based on the very good first quarter, we look forward to the coming months with confidence,” Stefan Fuchs said. “At the same time, there are continuing uncertainties regarding the further development of the economic environment and the develo9pment of raw material prices.”