Hansgrohe Group Reports Sales of Over €1.5 Billion in 2022
Despite a challenging global economic environment, Hansgrohe Group has reported positive financial figures for 2022, reporting sales of over €1.5 billion.
“With a really positive balance sheet for 2022, we are continuing our success of past years,” explains Hans Juergen Kalmbach, Chairman of the Hansgrohe Executive Board, at the Hansgrohe Group annual press conference in Frankfurt, Germany. The conference took place on the first day of ISH, the world’s leading trade fair for water, heating, ventilation and air conditioning.
The manufacturer of high-quality taps, showers and shower systems from Schiltach, Germany produced a total of €1.528 billion in sales compared to the previous year (€1.365 billion), marking an increase of 11.9 percent. Operating profit also rose to €291.6 million, an increase of 4.8 percent from the previous year (€249.7 million). The resulting sales/earning ratio of 17:1 percent is slightly below that of 2021 (18.3 percent)
Hansgrohe CEO, Kalmback, comments: “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. 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.”
Global Sales Growth
Hansgrohe’s strong growth in 2022 was even higher than our forecasted, with a growth in foreign business of 13.9 percent. This was based on increases in all regions but in particular good sales developments in both China and India, as well as in the German market. The global company supplies taps, showers and bathroom accessories to over 150 countries, and in 2022 Hansgrohe Group generated around 76 percent of its sales abroad, two percentage points higher than 2021.
The home market of Germany is also particularly important, and the Black Forest-based manufacturer continues to generate the biggest share of sales in this market, with a total of €371 million in 2022. This meant domestic sales grew by 6.2 percent, significantly higher than the German gross domestic product, which rose only 1.9 percent in comparison1.
[1] Source: Press release Federal Statistical Office, Press release No. 020, January 13, 2023
Hansgrohe Continues to Create Jobs
Globally, 5,639 employees contributed to the Hansgrohe Groups success this year, in comparison to a workforce of 5,373 back in 2021. Of these, 3,474 worked in Germany and 2,165 people worked at the Hansgrohe Group’s international locations (as of reporting date 31st December 2022). Overall, the number of employees worldwide grew by 266 people in 2022.
“Due to our strong growth, we have created over 500 new jobs, particularly at our German sites in both 2021 and 2022,” explains Hans Juergen Kalmbach. “Despite particular challenges due to the pandemic and our exceptional order intake, our teams have succeeded in onboarding new colleagues and integrating them in their respective areas – in addition to their day-to-day work.”
In recognition of their outstanding performance in the past year, the Hansgrohe Group paid employees a success premium of €3.7 million.
As one of the largest employers and training companies in the Kinzigtal region, Hansgrohe put it’s in house training to the test in 2022. The company received the “very good” rating in the latest certification by independent service provider Aubi-plus GmbH. In addition, Hansgrohe Group was once again awarded the seal of approval for the 2022 “Top Employer” award.
Record Investment in Production, Innovation and Sustainability
In 2022, Hansgrohe Group invested €89.2 million, up from €51.3 million in 2021, which was made up of numerous national and international projects.
The construction of a new production plant in Serbia, which began last year, accounts for the largest share of this investment. With this new site, Hansgrohe Group aims to strengthen it’s European manufacturing network, and the first hansgrohe fittings are set to be manufactured in the plant as early as mid-2023. Further investments were also made in the modernisation of a production plant in Schiltach, and the conversion of the Alpirsbach site into an innovation park. Investments in the production plant included capacity expansions and automation in basic production and assembly areas, tools for various new products, and also in information technology and the security of digital processes.
Another aspect of the investments is the implementation of Hansgrohe’s sustainability strategy in a wide range of areas, from production to product development. The German sites have already been climate neutral since 20212, but by the end of 2022, production sites worldwide will also have been converted to green power. This investment has also meant climate neutrality2 has been achieved in all global sites in terms of direct emissions, and energy consumed.
[1] Climate neutrality refers to greenhouse gas emissions from Scope 1 and 2 (direct emissions and energy consumed at the sites) according to the Greenhouse Gas Protocol. Wherever possible, the Hansgrohe Group actively reduces these emissions. The remaining emissions are offset through recognized, certified climate protection projects. For more information, please visit https://www.hansgrohe-group.com/en/about-us/responsibility.
Investments by the Hansgrohe Group has also improved the company’s innovative strength, which has been regularly recognised by third parties. In the summer of 2022, the Hansgrohe innovation lab achieved first place in the Innovation Lab category of the Digital Lab Award from business magazine Capital. In addition, the company has been named one of the Top 100 Innovators of German SME’s for the sixth time in a row. Since 1974, the company and its two brands, hansgrohe and AXOR, have made a name for themselves with their design expertise, counting more than 700 design awards to date.
2023 Outlook
The Hansgrohe Group has set itself ambitious goals for the current year, initiating multi-layered projects.
“2023 is one of the most difficult financial years to forecast,” says CEO Hans Juergen Kalmbach. “Inflation, war, geopolitical risks and dismal economic outlooks aren’t making life easy for any of us. It is at this time we want to continue changes under the motto ‘Celebrate Change’, which will further secure the success of the Hansgrohe Group in the medium and long term.”
A significant step is the expansion of the product portfolio, in which Hansgrohe Group will launch sanitary ceramics and bathroom furniture for the first time. “This is our response to our customers who are demanding holistic bathroom experiences from a single source,” Kalmbach explains. “With pioneering product innovations, we are once again living up to our reputation as an industry driver in innovation, design, quality and sustainability. 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.”
The Hansgrohe Groups ISH stand goes hand in hand with its sustainability strategy, not only designing the booth under the maxim ‘reduce – reuse – recycle’ but showcasing it’s ‘Green Vision’ design study. The Green Vision is part of the Hansgrohe Groups multi-faceted sustainability goals, in which they have designed a bathroom with 90 percent less water and energy consumption, and thus 90 percent less CO2 emissions that normally result from heating the water.
“Our ‘Green Vision Beyond Water: Rethinking Bathroom Culture’ has generated a concept in which the individual elements are already being used within in our innovations and are being incorporated into our technologies and serial products. The Green Vision concept is an important thing for Hansgrohe Group, as we are creating greater awareness of our approach to water throughout the bathroom” Hans Juergen Kalmbach explains.
Another milestone in the Hansgrohe Group’s development will be the commissioning of the new manufacturing site in Valjevo, Serbia, in the middle of the year. “With a total investment of €85 million, we are implementing our global manufacturing strategy at this new site, creating the necessary capabilities for growth, particularly for the European market,” says the Chairman of the Executive Board. Hansgrohe have been recruiting a core team of local specialists, working hand in hand with their German colleagues to professionally implement the upcoming start of production.
“In the future, we are focusing even more on our employees,” explains Hans Juergen Kalmback. “It is important for us to bring even more diversity into the Hansgrohe family, and to convey our Hansgrohe mentality to new, international teams, whilst learning from all cultures. To support this mission, Hansgrohe Group has expanded its board of directors to include an independent human resources department. Sandra Richter has been the Chief People Officer for the Hansgrohe Group since March 1 2023, and looks to support Hansgrohe’s mission to achieve ambitious goals in every market through excellent talent.
Finally, Hans Juergen Kalmbach comments: “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.”