Kuhn Group net sales increased by 20.5% last year from £880m (CHF1.09b) in 2020 to £1.06b (CHF1.32b). Demand for the company’s products was strong in all key regions.
The increase was driven by higher farmer incomes, various government support programmes, generally favourable weather conditions and low dealer inventory levels prompting early order placement and larger orders. The rise in Kuhn fortunes was also underpinned by a major need for more productive machines after the extended low cycle in the arable sector. This upswing was particularly pronounced in North America and Europe.
The company managed to cope with supply chain and logistics problems, but recruiting additional qualified employees to cope with a full order book was difficult, particularly in the USA, although global Kuhn Group staff numbers increased from 5,194 in 2020 to 5,832 last year.
Looking ahead, the company anticipates that demand for agricultural machines will weaken at a very high level, especially in North and South America. Difficulties in the supply chain and logistics will remain for the next few months and the high order book at the end of 2021 means that manufacturing sites will remain strongly utilised, particularly in the first half of this year. Despite higher material and labour costs, Kuhn expects sales to rise slightly this year and the operating profit margin is likely to remain in double digits.
