Swiss foodservice equipment and coffee appliance manufacturer benefits from ongoing hospitality recovery and increased consumer spending on home coffee equipment as Covid-19 restrictions continue to ease in many countries globally
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Increased consumer spending helped Franke Group achieve 31% sales growth compared to the same period in 2020 | Photo credit: Franke Group
Reporting its half-year results for 2021, Franke Group parent company The Artemis Group said it achieved revenues of CHF 1.64bn ($1.8bn), a 30% increase on the same period last year.
The Artemis Group, which also controls real estate, asset management and tool manufacturing businesses, highlighted Franke Group’s strong performance, which achieved sales of CHF 1.26bn, up 27.6% on the same period in 2020.
Home appliance manufacturer Franke Home Solutions saw the largest sales increase at 41.1%, followed by Franke Foodservice Systems at 35% and Franke Coffee Systems at 11.4%.
‘Franke Group benefited from the catch-up effect in consumer spending after the corona loosening as well as various structural improvements and recorded strong organic sales growth of 31% with substantially improved profitability’, the company wrote in a press release.
The results are further indication of an ongoing recovery of hospitality businesses globally as Covid-19 trading restrictions continue to relax in many countries.
Despite the positive results Artemis Group indicated deep uncertainty remained during 2021, exacerbated by a ‘current severe shortage’ of raw materials and ‘significant increase’ in prices and logistics costs.
‘Higher costs for consumers could affect their buying habits and slow down demand,’ the company wrote.
Headquartered in Aarburg, Switzerland, Franke Group employs around 10,500 staff across Europe, South and North America, Africa, Australia and Asia. In 2020 the company posted full-year revenues of CHF 2.18bn ($2.38bn).