BSH UK experienced a huge boost to its profits in the last financial year thanks to price increases on its products, in spite of a decrease in its overall turnover figure.
In its 2022 accounts, just filed with Companies House, the appliance giant revealed that pre-tax profits were up by over 26% on the previous year to £30.2m.
This increase in profit is despite a slight fall in turnover to £811m, roughly 4.4% lower than the previous year.
In the report filed yesterday, BSH UK said it was “necessary” to increase product prices to reduce the impact of “inflationary pressures, rising material and logistics costs, the invasion of Ukraine and its impact of food and energy process, [and] a fall in consumer confidence.”
The company also admitted to struggling with “product availability due to component shortages,” but said this had eased “considerably” towards the end of last year.
Transport-related CO2 emissions had also risen considerably, with BSH producing 2,705 metric tonnes in 2022, up by almost 10% over the previous year, which it attributed to “the return of travel to pre-pandemic level.”
However, the company has re-affirmed its commitment to reducing emissions. It has increased the number of electric and hybrid vehicles in its fleet, and is looking to “convert the fleet to all-electric where practical.”
Looking ahead, BSH UK’s directors “believe that with confidence increasing, the company will be well placed to fulfil consumer’s needs,” adding that the company’s “products and brands provide a strong platform for long-term profitable growth.”
Similarly to BSH, appliance companies across the sector have reported a similar trend for reduced turnover. Beko’s chief commercial officer Ragip Balcioglu recently discussed with kbbreview how the UK market is “at its lowest point for 15 years,” and Miele’s executive director, Dr Reinhard Zinkann, said that the state of the economy had “taken the heat out of the market.”