US-headquartered catering equipment giant Middleby Corp has reported its financial results for the second quarter of 2021.
During this three month period, it generated net earnings of US$120.6m on net sales of US$808.8m.
Net sales increased 71.4% in the second quarter over the comparative prior year period. Excluding the impacts of acquisitions, a disposition and foreign exchange rates, sales increased 64.8% in the second quarter over the comparative prior year period, reflecting improvements in market conditions and consumer demand since the initial impact of Covid-19.
Total backlog at the end of the second quarter of 2021 amounted to a record level of US$994.2m, as compared to US522.7m at the end of the fiscal 2020. The increase was reportedly driven by order growth, primarily at the commercial foodservice group and residential kitchen group, amounting to backlog levels in excess of 90% over the prior year end, when excluding backlog from businesses acquired during the year.
This is welcome news for the conglomerate, following an acquisition battle with rival Ali Group over Welbilt. While Ali Group won out in the bidding war, it had to pay Middleby Corp a US$110m termination fee on Welbilt’s behalf.
Tim FitzGerald, CEO of the Middleby Corp said: “Our strong second quarter results reflect the ongoing recovery in our foodservice businesses with measurable progress toward our long-term growth initiatives and realised profitability improvements at all three of our business segments.
“We continued to make investments in technology solutions to capture rapidly-evolving market trends and execute upon our strategic sales initiatives as we position for the future.”
“Across all three of our business segments we experienced strong incoming orders and have continued to add to our record backlog. We are gaining momentum as we benefit from market trends in all businesses and we have developed industry leading solutions for our customers to effectively navigate this evolution.”
However, he acknowledged: “In the near-term we are impacted by increasing supply chain disruptions that may adversely impact shipments, service levels and production. We are also experiencing record material cost increases. While these challenges will continue in the second half, we are confident in our ability to manage through this disruption as we position Middleby for 2022.”
FitzGerald further analysed: “In commercial foodservice, our foodservice customers continue to address changing needs in a new business environment. Our solutions focus on the latest industry trends, such as automation to ease issues around labour availability and cost, the use of IoT for data capture and monitoring, and ventless technology that is used in non-traditional venues, such as ghost kitchens.
“Our equipment options for delivery, pick up and carry out are growing in popularity. We see our many strategic investments coming to fruition. While many of our customers are still facing the continued challenges from the pandemic, the demand for foodservice has proven resilient and the emerging trends will provide long-term growth opportunities.
“We continue to have consistent positive feedback from visitors to the Middleby Innovation Kitchens since opening earlier this year. Guests have a hands-on experience with our world-class team of chefs. The Middleby Innovation Kitchens allows our customers the opportunity to access all Middleby innovation as they evolve of their foodservice operations. In July, we debuted our new residential showroom attached to the Innovation Kitchens, bringing to life our shared commercial and residential product innovations in one state-of-the-art facility.
“At the food processing group, our most recent innovations have been well-received in the marketplace, including the Alkar TurboChef oven and the Maurer-Atmos accelerated drying room technology, which allow us to expand our product offerings in new and targeted markets. There is significant interest in automation solutions which directly addresses labour issues and employee safety concerns.”