German lubricant and aftermarket additive manufacturer Liqui Moly reported 26% higher sales in November and 38% higher sales in December, compared to results a year earlier. Aggressive marketing and investments helped it weather and eventually thrive despite the pandemic, the company said.
The €62 million (U.S. $76 million) reported for November was the company’s second-highest monthly sales revenue ever. “Only January was even stronger,” the company stated in a news release. In a Dec. 29 press release the company said sales in February and March were also higher than the corresponding months of 2019, though it did not say by how much, and it provided no information about performance from April through October. The same press release said that December sales were 38% above December of 2019, but it did not disclose the December sales figure nor the portion of the month on which the percentage was based.
Liqui Moly acknowledged that it was affected by the global pandemic that took root in around March, but it asserted that it adopted a countercyclical strategy, retaining workers and scaling up investment.
“No staff were dismissed, no short-time work was announced – on the contrary, 101 new employees were hired,” the company said. Liqui Moly said it accepted no state aid, gave its entire workforce an employment guarantee and a €1,500 coronavirus allowance. The company had 933 employees at the end of 2019.
“Investments were not canceled, but increased massively,” the company continued. As an example, it doubled its marketing budget. This included advertising in radio, television, magazines, online and at numerous sporting events, such as Formula 1 or in winter sports. It did not provide specific numbers.
“We are living off the good years before the crisis,” Managing Director Ernst Prost said in the press release. “Fortunately, we have built up reserves. This enables us to invest in the future now.”