Gurit 2021 net sales impacted by reduced wind blade, balsa demand

As of Jan. 31, Gurit Holdings AG (Zurich, Switzerland) has reported preliminary and unaudited net sales of CHF 467.9 million (approx. USD $507.9 million) for the full year 2021. This is a decline of -19.8% at constant exchange rates or -18.9% in reported CHF versus the prior year. The company’s Board of Directors is proposing to the Annual General Assembly a share split and the introduction of a single-share structure, as a measure to further strengthen the company’s Corporate Governance and ESG performance.

Overall, Gurit saw its 2021 net sales impacted by a globally reduced demand for wind blades and by a decreasing demand and price of balsa, compared to a very strong demand the previous year. Comparatively, the Marine and Industrial markets have picked up double-digit growth rates in the second half of the year, compared to 2020.

Composite Materials reports net sales of CHF 221.8 million (approx. USD $240.8 million) for 2021. This is a decline of -21.1% at constant rates compared to 2020. The decrease is due to lower wind demand and globally reduced volumes and prices in balsa. The Marine and Industrial markets have performed strongly and saw double-digit growth rates.

Kitting recorded net sales of CHF 185.5 million (approx. USD $201.3 million) for 2021. This is a decrease of -17.8% at constant exchange rates compared to 2020. Kitting net sales were also negatively impacted by the slowdown in wind blade manufacturing as well as lower material pricing.

The Business Unit Manufacturing Solutions (Tooling) reported net sales of CHF 73.2 million (approx. USD $79.4 million), which represents a decrease of -28.3% at constant exchange rates compared to 2020. The second half of 2021 saw a weaker tooling market in general and particularly in China.

Aerospace reported net sales of CHF 30.1 million (approx. USD $32.7 million)  for 2021. This represents a decrease of -5.3% at constant exchange rates compared to 2020. While the Business Unit faced a sharp decline compared to pre-COVID-19 levels, sales trends continue to head in a positive direction with global aircraft OEMs increasing build rates.

Net sales in million CHF (unaudited)	Full year				Sales by quarter
	2021	2020	Change in reported CHF	Change at constant 2020 rates	Q1 2021	Q2 2021	Q3 2021	Q4 2021
Composite materials	221.8	276.2	-19.7%	-21.1%	59.8	58.4	51.1	52.6
Kitting	185.5	225.6	-17.8%	-17.8%	43.0	52.2	42.8	47.5
Manufacturing solutions (tooling)	73.2	98.7	-25.8%	-28.3%	30.6	24.7	8.6	9.2
Aerospace	30.1	31.6	-4.6%	-5.3%	6.6	7.6	7.8	8.1
Elimination	-42.7	-55.3			-12.3	-12.0	-8.0	-10.4
Total continued operations	467.9	576.7	-18.9%	-19.8%	127.7	130.9	102.3	107.0
Composite components (discontinued operations)	0.0	2.1	-100.0%	-100.0%	0.0	0.0	0.0	0.0
Total group	467.9	578.8	-19.2%	-20.1%	127.7	130.9	102.3	107.0

The Board of Directors proposes the adoption of the “One Share, One Vote” principle by introducing a single registered share structure. The proposed new share structure is reported to further strengthen the Corporate Governance of Gurit and provide equal voting rights for all shareholders.

Current significant registered shareholders have indicated their agreement to waive their voting rights privileges in favor of a new single-share structure, without compensation. The voting rights of current registered shareholders together would change from 36.4% to 10.3% after the introduction of the single registered share.

The listed bearer shares of Gurit have also seen a significant price increase over recent years. To facilitate trading for private investors, the Board of Directors will propose a 1:10 share split at the Annual General Meeting scheduled for April 20, 2022. This affects 420,000 Gurit bearer shares with a nominal value of CHF 50.00 each (Swiss security No. 801223, ISIN CH0008012236, symbol GUR) listed on SIX Swiss Exchange. At the same time the Board will propose a 1:2 share split of the currently unlisted registered shares of Gurit Holding AG. Provided the Annual General Meeting approves these proposals, the share splits would become effective at the beginning of May 2022.