Once again, the Hansgrohe Group ended the 2013 fiscal year with record sales. The global mixer and shower manufacturer generated EUR 841.4 million (compared to EUR 805.5 million in 2012).“Against a backdrop of moderate economic growth rates across the globe, Hansgrohe delivered an above-average performance. We were able to increase sales of mixers and showers both at home and abroad, and achieve growth in nearly all sales regions,” reports Siegfried Gänßlen, CEO of Hansgrohe SE.
International sales were particularly dynamic, increasing by more than 5 percent. This growth was driven by North America, China and France. Emerging markets – Asia, the Middle East and Latin America – also contributed to this positive trend. Domestic sales increased by 2 percent in 2013. By introducing targeted measures and optimised processes, the Hansgrohe Group improved EBITDA to EUR 155.6 million (compared to EUR 143.3 million in 2012), equivalent to an EBITDA margin of 18.5 percent.
“Our positive development is based on Hansgrohe’s outstanding capacity for innovation,” says Siegfried Gänßlen. “We continued to invest heavily in research and development and launched many new products which enjoy a high level of customer acceptance and have set standards in the industry.”
A continuing strategy of global expansion
In the 2013 financial year, Hansgrohe SE consistently pursued its global strategy, laying the foundations for continued growth. The company opened several new branches, expanding its distribution network and increasing its global market presence. One of the highlights of the past financial year was the founding of its Turkish sales and distribution company headquartered in Istanbul. Hansgrohe thereby created the conditions to continue to develop the great potential of the Turkish market and neighbouring regions. The company’s rapidly growing South African subsidiary moved to its new headquarters in Johannesburg, which features a spacious showroom where customers can now be served even better. Hansgrohe also opened a showroom for its luxury designer brand Axor in the heart of Milan, presenting architects, interior designers and design enthusiasts with visions of the bathroom as a living space.
Strategic investments also created new jobs
Numerous strategic investments allowed Hansgrohe to increase its competitiveness, expand its power of innovation and further advance its global market development. The company’s capital spending in 2013 amounted to nearly EUR 41 million (compared to EUR 35 million in 2012). Again, the bulk of the capital was invested in the sanitation specialist’s German locations. This is where the company’s central research and development is headquartered, and where it operates six plants which manufacture – in terms of sales – roughly 80 percent of the company’s production. Most of the capital invested was spent on new tools and equipment for the manufacture of new products, and on machinery and facilities to expand production capacity in Schiltach and Offenburg. As part of its sustainability management, the company also improved environmental performance and optimised its use of resources.
The largest single investment outside of Germany was made for the Hansgrohe production facility on the outskirts of Shanghai in Songjiang, China. The existing plant was expanded by 8,000 square metres, nearly doubling production output. All investments were financed from cash flow thanks to Hansgrohe SE’s solid earnings.
Investments in 2013 also led to the creation of new jobs. The Hansgrohe family grew by 57 employees, bringing the total number of staff worldwide to 3,501 as of 31 December 2013 – nearly 2,200 of them in Germany alone. Last year, 39 young people began their training at Hansgrohe SE. The middle-sized enterprise based in the Black Forest is currently training a total of 137 people in more than 25 occupations. The company’s trainee quota of 6.3 percent is well above the German national average for the metalworking industry.
Growth through innovation
“With its innovative power and a business strategy that embraces social issues and environmental protection, the Hansgrohe Group will continue to uphold its 113-year history of success,” Siegfried Gänßlen sums up. “We are off to a good start in 2014, and together with our customers and market partners we will continue to grow profitably.”