R&M (Reichle & De-Massari AG) achieved sales of CHF 274.2 million in the 2021 financial year. The increase was 9.9 % across the Group, reports the family-run company based in Wetzikon. The globally active developer and provider of cabling systems are thus continuing its growth trajectory. «R&M was able to quickly compensate for the pandemic-induced decline in sales from the previous year,» says CEO Michel Riva. At constant exchange rates, year-on-year growth in local currency was 10.6% and 5.0% compared to 2019. At CHF 15.2 million, EBIT was at the same level as in 2019.
The market for cabling systems recovered strongly in the 2021 financial year and is back at pre-pandemic levels. Around the world, the telecommunications, data center, and local data network industries invested accordingly in new infrastructures. Megatrends such as cloud services, IoT, and digitalization increased the demand for higher bandwidths and secure data networks. However, the strong demand also led to global bottlenecks and a sharp increase in material and transport costs.
To meet the high demand, R&M further expanded the capacity of its 14 manufacturing facilities worldwide and hired additional staff, particularly in Bulgaria, China and India. The R&M Group currently employs 1,650 people. «Despite the bottlenecks on the global market, R&M was able to deliver at all times thanks to good procurement and production management,» emphasizes Michel Riva.
Investments in markets pay off
In recent years, R&M has noticeably expanded its global presence. As a result, regional, large-scale projects that are coming to an end can be compensated for more quickly. This was also the case in the financial year 2021.
Large orders from broadband providers and the economic recovery resulted in a growth of around 20 % in Germany. Germany is now R&M’s largest market, followed by Switzerland. In the other European sales regions, the increase was between 10 and 25 %. In India and China, R&M achieved growth rates of between 20 and 30 %, and in Brazil, additional large orders were received from telecom companies that are expanding fiber optic networks nationwide. Here the increase was over 60 %. «Continuous investments in the establishment of new markets are paying off,» says CEO Michel Riva.
Ready for new applications and future trends
R&M is observing positive trends and growth opportunities in all market segments, particularly through the use of new technologies and applications. Currently, 5 % of the R&M workforce is employed in technology development.
In the telecom sector, all-in-one solutions for Fiber to the Home are in demand, and the setup of the 5G standard will further accelerate the demand for fiber optic technology in the coming years. R&M developed a new product range for this purpose in the financial year.
«The smart buildings megatrend with building automation digitalization and the Internet of Things is just beginning. R&M already has an innovative range for building cabling,» says Michel Riva.
Thanks to the acquisition of Tecnosteel S.r.l., a leading European manufacturer of IT cabinet systems, at the start of 2022, R&M can now also offer integrated solutions for the data center market and thus stand out from the competition.
Climate targets defined
The focus is also on expanding sustainability at all the company’s premises. The ecological, ethical, and economic objectives were redefined in the 2021 financial year. R&M shares the UN Sustainable Development Goals and aims to reduce all climate-relevant emissions by 50 % by 2030. The Sustainability Report 2021 will be published in the spring.
