Sensirion Reports Full-Year 2021 Results 2021

While 2021 was indeed demanding, from a business perspective it was also a successful year for Sensirion. Revenue growth was fueled by ramp-ups from recently launched sensors, such as car-bon dioxide (CO2), particulate matter (PM2.5) and formaldehyde sensors.

In addition, the existing business noted a strong post-pandemic recovery as well. Major challenges arose in the supply chain worldwide. Nevertheless, Sensirion was able to limit the impact on customers.

The year closed with consolidated sales totaling CHF 287.5 million (+13.3%). Of this, CHF 22 million (CHF 70 million for the same period in the previous year) can be attributed to the COVID-19-related uptick in sales of sensors for medical ventilators.

For many people around the world, COVID-19 also left an indelible mark on 2021 due to the diffi-culties and uncertainties it created for both society and the economy. For Sensirion, it was a chal-lenging but successful year that can best be summarized in three ways: strong customer demand in all markets, difficult supplier markets and innovation in new business areas.

Consolidated revenue amounted to CHF 287.5 million (+13.3% compared to the prior-year period, +14.8% organic, 0.8% inorganic, -2.2% foreign currency effects). Of this, CHF 22 million (CHF 70 million for the same period in 2020) can be attributed to the COVID-19-related uptick in sales of sensors for ventilators. Adjusted for this one-off special effect, this yielded a strong sales growth figure of 46.5%.

The gross margin improved to 61.7%, and the EBITDA margin reached a high 31.7%. Both key profitability figures improved in the short term due to high operating leverage resulting from sales growth as well as the delay in recruitment, putting us in a good position to take advantage of future opportunities. The operating profit was CHF 76.8 million, resulting in a net profit for the period of CHF 65.9 million. Operating cash flow amounted to CHF 73.0 million.

The automotive business recorded revenue growth of 13.9% to CHF 62.9 million. Both the Tier II business with the traditional sales components and the Tier I module business contributed to this growth. For the components, the pandemic-related lower demand from last year has recovered for the most part. Additionally, the sensor component-related functionalities keep increasing their mar-ket share overall. Growth in the module-based Tier I business is attributed to initial ramp-ups with European OEMs.

In the medical market, revenue decreased by -41.2% to CHF 66.1 million. The decrease is in direct relation to lower demand for ventilators compared to 2020 and was expected. In 2021, the addi-tional revenue in connection with pandemic-related sensors amounted to CHF 22 million (2020: CHF 70 million). Apart from the COVID-19-related special effects, the core business of the medi-cal market showed moderate growth of 4.3%.

In the broadly diversified industrial market, development was very dynamic. Revenue grew signifi-cantly and amounted to CHF 131.4 million (+84.6% compared to 2020). The main driver here was strong demand for our new environmental sensors in the appliances and the heating, ventilation and air conditioning (HVAC) segments. Firstly, we benefited from the increasing market share of air purifiers thanks to the formaldehyde sensor as well as the combo sensor module, which can meas-ure multiple environmental parameters such as PM2.5, humidity, temperature and gas quality.

Additionally, partly due to the global pandemic, there is an increased awareness of indoor air quali-ty. CO2 plays a key role in this regard and SCD40, a miniaturized CO2 sensor, is in an excellent position to meet this need.

Challenges in the supply chain were a very special task during 2021. Next to shortages of semi-conductors themselves, various other raw materials have been impacted by delayed supply as well.

As part of this strategic goal, Sensirion finalized three acquisitions in 2021. In February, Sensirion acquired the Dutch company Qmicro. The founder-managed company develops and produces compact and high-efficiency micro gas analyzers for continuously analyzing the composition of gas mixtures and for applications in environmental monitoring and the natural gas market.

In May 2021, Sensirion completed the full acquisition of the Swiss company IRsweep AG, an in-novative provider of optical sensing solutions. IRsweep develops, manufactures, and supplies mid-infrared optical spectroscopy solutions.

In September 2021, Sensirion fully acquired the Berlin-based start-up company AiSight GmbH. AiSight is an innovative company that offers user-friendly solutions for the strong growth segment of condition monitoring and predictive maintenance. The deep combination of sensors and data analytics through artificial intelligence is paving the way for Sensirion to enter a brand-new busi-ness field where the focus lies on the generated data as opposed to the hardware parts itself. All three acquired companies are still managed locally by their respective founders.