German bathroom products giant Hansgrohe has surpassed its own forecasts for 2022 with strong growth and a double-digit increase in revenues.
In its latest financial results, Hansgrohe revealed it had achieved sales of €1.53 billion (£1.35bn), which is up 11.9% on the year before (€1.37bn). Operating profits also rose by 4.8% from €249.7 million in 2021 to €291.6m in 2022.
The group also reported higher than forecast sales in overseas markets, which increased by 13.9%. This was based on increases in all regions worldwide but in particular good sales developments in China and India, as well as in its home market of Germany. The company supplies taps, showers and bathroom accessories to 150 countries and in 2022 export sales accounted for 76% of its revenues – up 2% on 2021. Domestic sales in Germany grew by 6.2% to €371m.
Commenting on the results, Hansgrohe chief executive Hans Juergen Kalmbach said: “With a really positive balance sheet for 2022, we are continuing our success of past years. It is once again due to the flexibility of all our employees worldwide that such good results have been achieved. On behalf of my colleagues on the Executive Board, I would like to express our gratitude to the international Hansgrohe team.”
He continued: “External factors such as the Covid situation in China with lockdown in Shanghai, the war in Ukraine, and the resulting effects on our supply chains have laid great demands on us. However, with our Hansgrohe team spirit, we have navigated these external factors and were able to offer our market partners the best possible service, despite the circumstances.”
In 2022, the Hansgrohe Group created more than 500 new jobs, bringing the number of employees worldwide to 5,639. Of these, 3,474 are employed in Germany. And in recognition of its financial performance, the company also paid a success premium of €3.7m to its employees.
The group increased its level of investment to a record €89.2m in 2022 from €51.3m in 2021. The lion’s share of this was for the construction of a new production plant in Serbia, which began last year to strengthen its European manufacturing network.
It is also investing in modernising its Schiltach production plant in Germany. As part of its sustainability strategy, it will also be converting its production sites worldwide to green power.
2022 was also a milestone year for Hansgrohe with its launch into sanitary ceramics and bathroom furniture for the first time.
Said Kalmbach: “This is our response to our customers who are demanding holistic bathroom experiences from a single source. After the pandemic related break in 2021, we are delighted to be personally exchanging with our market partners again and had a fantastic time at ISH this year with our innovation-filled stand.”
On the outlook for 2023, Kalmbach said: “2023 is one of the most difficult financial years to forecast. Inflation, war, geopolitical risks and dismal economic outlooks aren’t making life easy for any of us.”
He concluded: “Even if the forecasts for 2023 predict weaker growth, the Hansgrohe Group will be well positioned for the coming years. We will offer the best possible service in the interests of our customers, as well as developing sustainable, innovative products to successfully serve our international markets and gain further market share.”