03/11/2022 – 1 min
of free democratic states
In the middle of a security-policy turning point in Europe, Heckler & Koch (H&K AG Group) is looking back on one of the most successful financial years in its corporate history. While sales in the year 2021 totalled EUR 290.2 million (2020: EUR 275 million / plus 5.5 percent), net profit rose 61 percent to reach EUR 21.8 million (2020: 13.5 million). Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 58.0 million, some 16 percent higher than in the previous year (EUR 49.9 million). Cashflow from operating activities rose to EUR 56.5 million (2020: EUR 41.5 million).*
The strong performance is the result of the sucessful restructuring and modernisation of the past four years. "We are once again a profitable and innovative company. Fortunately, this is now enabling us to respond to the increased demand from our customers from NATO and ther EU resulting from Putin's aggression in Ukraine," said Group CEODr.-Ing. Jens Bodo Koch.
As a consequence of security-policy developments, between 2019 and 2021 Heckler & Koch brought its production capacities into line with increased demand from numerous EU states. If the Russian invasion of Ukraine makes this necessary, the company will create further capacity at short notice. Koch: "At stake, more than ever before, is our security and that of our allies as well as the defence of our liberal societies. As a partner of free democratic states, Heckler & Koch will continue to play its reliable part."
Koch: Immediately able to start production of the Bundeswehr assault rifle
The Bundeswehr (German Army) remains Heckler & Koch's most important customer. This was demonstrated last year by the extended framework agreement for the machine gun MG5 and by the extensive maintenance orders for other handguns. In addition, Heckler & Koch remains confident that the German government's decision to award the contract for the new assault rifle to the Oberndorf-based company will be upheld. "The current situation is a start reminder that our armed forced need to be equipped with the best possible materials." Our assault rifle HK416 came out top in the Bundeswehr competitive bid," said CEO Koch. Moreover: "Heckler & Koch is willing and prepared to start production without delay."
As was the case last year, the backlog of orders in the past financial year remained stable at a high level. In addition to the Bundeswehr, other important customers are Great Britain with the modernisation of its assult rifle SA80, France and Norway with the new purchase of their assault rifles model HK416 as well as the Baltic states Latvia and Lithuania (G36). The particular situation on the American civil market has also resulted in substantialadditional sales for HK pistols.
Green Country Strategy Heckler & Koch once again highly profitable
"We are continuing to implement our Green Country Strategy with determination," said H&K Chief Financial Officer Dr. Björn Krönert. "And success has proven us right." Only 0.2 percent of overall sales in 2021 (total: EUR 0.5 million) is accounted for by countries outside the EU and NATO as well as NATO-equivalent countries (Australia, New Zealand,Japan, Switzerland). This constitutes spare part packages from established contracts as well as weapon deliveries to South Korea and Singapore.
Heckler & Koch is once again highly profitable, enabling debt to be rigorously reduced. "I am confident that we will be able to make further progress this year to restore our financial health," said Chief Financial Officer Krönert. Events in Ukraine have demonstrated once again that companies that equip police forces and armed forces are essential for Germany's security. "The defence industry is crucially important when it comes to maintaining and defending democracy, liberty, stability and human rights." In view of recent events, this is becoming increasing clear to everyone here in Germany, said Krönert.
The world's most modern and precise weapons
Heckler & Koch will maintain its focus on innovation, irrespective of current security-policy developments and the possible requirements of NATO forces to replenish their inventories. With the HK433, for example, the company has not just got the latest-generation assault rifle in its programme, but has also developed a whole family of weapons, for example the HK437 with the calibre .300 BLK. In addition, Heckler & Koch is set to market a light machine gun and a grenade-thrower, while simultaneously expanding its portfolios of pistols. "We are determined to offer Germany and its allies the world's most modern and precise weapons, especially in view of the current security situation," said CEO Jens Bodo Koch.
*not yet tested.
Made for Safety
We want people to be able to live safely. Our products are designed to protect people in free democratic countries from threats and violence. Heckler & Koch is the leading manufacturer of small arms for NATO and EU countries.
