Liqui-Moly Reports Increased Sales

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Liqui-Moly Reports Increased Sales

Liqui-Moly reported an 8 percent increase in sales for the first half of this year. The German company said that exporting to many countries helped it weather such factors as rising raw material costs, discontinuing its Russian business because of the war in Ukraine and losing sales in China during restrictive pandemic lockdown periods there.

The company’s sales reached €382 million (U.S. $388.3 million) for the period from January through June, compared with €355 million for the same period in 2021. Liqui-Moly is privately held, does not file audited earnings reports and did not disclose earnings for the first six months of the year.

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Günter Hiermaier, who has been the motor oil manufacturer’s sole managing director since February, said he planned for an 18% increase in sales for the period. “I’m satisfied with it, but not happy,” Hiermaier said in a press release of the actual 8% increase. The company is struggling with extreme costs, he noted. “Raw material prices are rising to unprecedented levels, which we unfortunately also have to pass on to our customers in some cases.”

Hiermaier said he was satisfied with the result in view of the global political situation. “We hadn’t overcome the effects of the pandemic – supply chain disruptions, rising raw material prices and freight costs – before the next disaster, the war in Ukraine, caught us by surprise,” he said. “The decision to discontinue our Russian business has hit us hard economically. But it was the right one.”

Liqui-Moly experienced a shortfall of about €20 million in sales in the first half of the year from the Russian business, he said, which the company is waiving of its own accord. “Making up for this business was a huge feat,” Hiermaier said. “In addition, there were losses in the millions from the Chinese business, which almost came to a standstill.” The company’s strategy of internalization helped keep its sales up, he noted, and the company now generates about 60% of its sales from exports. “By exporting to 150 countries, we have spread our risk across a wide area and have been able to significantly increase our sales in other countries,” he said. This included year-on-year sales increases of 70% in the United States, 30% in Spain and Portugal and 24% in North Africa.

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