The Hansgrohe Group once again achieved record results in 2017
Schiltach/Frankfurt, March 20, 2018. The Hansgrohe Group closed the 2017 financial year setting a new sales record. This was announced today by Thorsten Klapproth, Chairman of the Executive Board, and Reinhard Mayer, Executive Board Member Finance, at the financial press conference held by the leading manufacturer of shower heads, shower systems, bathroom and kitchen faucets, and kitchen sinks in Frankfurt. With its two brands, AXOR and hansgrohe, the global player generated a total of EUR 1.077 billion in sales, up from EUR 1.029 billion in the previous year. This purely organic growth corresponds to an increase of 4.6 percent (5.8 percent after currency adjustment) over the 2016 financial year. EBITDA rose to EUR 215.2 million, and grew by 4.4 percent (EUR 206.1 million in 2016). The EBITDA margin remains unchanged at 20 percent, documenting the Hansgrohe Group’s profitable growth.
“We are rightly proud of this new sales record and our strong position in the market. We thank all Hansgrohe employees around the world, who, with their dedication and commitment, are the backbone of our continuing and sustainable growth,” says Thorsten Klapproth in his review of the past year.
Above-average growth generates market shares worldwide
In 2017, the Hansgrohe Group generated approximately 77 percent of its turnover outside Germany, marketing its products in more than 140 countries. The global player is experiencing faster growth than the sanitary industry overall, and the economies of many countries, thus gaining additional market shares. In Germany, still its most important single market, the Black Forest-based company reported a 4.6 percent increase in sales, compared to a mere 2.5 percent reported by the sanitary industry as a whole. When compared to the European market, the results also outweigh the industry growth: the currency-adjusted turnover of the Hansgrohe Group rose by 4 percent. Hansgrohe reported exceptionally strong growth in China. Its increase in sales of 25.2 percent was considerably higher than industry and economic growth. For the Hansgrohe Group this means that China has for the first time become its second most important market after Germany and ahead of the USA. This development continues to be driven by strong project business and products especially developed for the Chinese market.
The continuing development of the company’s successful strategy and the course of expansion it has embarked upon, also saw the appointment of two new Executive Board members responsible for Sales. Since January 1, 2018, all European Sales operations, including Germany, have been bundled into one area of management headed by Christophe Gourlan, formerly Vice President Sales Europe. Hans Juergen Kalmbach, another Sales expert, who has also successfully worked at Hansgrohe for many years, joined the Executive Board at the same time forInternational Sales.
Strategic investments ensure competitiveness
The Hansgrohe Group continues to invest heavily in its future. In 2017, investments in fixed assets amounted to EUR 51 million, EUR 2.3 million more than in the previous year. The group invested EUR 44 million in domestic projects alone, most of it in its Offenburg plant. In 2017, the first of two 30-million-euro projects, the Offenburg logistics center went into operation: an investment intended to deliver products to customers faster and more efficiently. Now, the internationally active manufacturer of shower heads, shower systems, bathroom and kitchen taps, and kitchen sinks is investing roughly EUR 30 million into a new plastics electroplating facility on its existing production premises in Offenburg, creating new capacities for future growth. The facility is scheduled to go into operation in spring 2019.
Employee satisfaction and a new teaching and learning platform
“Passion and enthusiasm for our work together and our common achievements are the driving force at Hansgrohe,” says Thorsten Klapproth, explaining the company’s success. In 2017, 4,962 people around the world contributed to this success, of which 2,862 are employed in Germany and 2,100 at the group’s international locations. “The fact that employee numbers are increasing is a positive development that makes sense. However, we don’t want to grow in terms of numbers only; above all, we want to grow in terms of quality. Our goal is to involve our employees, to support and inspire them,” says the Chairman of the Executive Board. In July 2017, the company opened its learning platform, the Hansgrohe Campus, which comprises six departments: Digitalisation, Efficiency, Brand, Staff & Leadership, Sales, and Strategy & Innovation. This qualification program is aimed at all employees, offering them the opportunity to attend various events, impulse lectures and even individual programs during working hours. This learning platform is run by Hansgrohe in collaboration with distinguished partners, among them the University of St. Gallen, Switzerland. In the first six months, more than 1,500 people shared and expanded their knowledge with internal and external speakers during more than 50 events.
“As in previous years, in 2018 we want to continue to grow faster than the market. One of the areas we will focus on again is the kitchen,” Thorsten Klapproth says. “By investing in our sites, in innovative processes and products, and above all in the qualification of our employees, we continue to steadily and effectively increase our sales and earnings. With our excellent and motivated teams across the globe, we will again succeed and be able to announce record results in the next year.”