25/04/2012

One billion in sales revenue now within sight

In 2011, the Hansgrohe Group achieves a double-digit jump in sales – all-time high in sales, investments and employee numbers

Operating in a highly changeable economic environment, the Hansgrohe Group managed to stay its course for growth in the year 2011. “Sales in almost all regions exceeded the previous year's level; as a result, our company's net sales figure set a new record. The figure of one billion in sales per annum is now within our reach,” said Siegfried Gänßlen, the CEO of Hansgrohe SE at a press conference held in Stuttgart today, in summarizing the 2011 financial year. “In our home market of Germany and in the emerging markets, the growth generated through the collaboration with our partners and customers was particularly impressive. However, even in markets such as the United States and the UK, which had suffered the effects of the financial markets and real estate crisis for an extended period, the turnaround achieved last year continued with a sustained positive trend.” With a growth rate of 10.3 per cent, total net sales rose by € 71 million, to reach € 764 million (2010: € 693 million).

“Despite substantial rises in prices for commodities and materials, we managed to generate another slight increase in pre-tax earnings and maintain our operating profit at the previous year's record level,” explained Hansgrohe’s CEO. Buoyed by the boost in sales, the bathroom and sanitation specialist from the Black Forest improved its earnings before tax by 2.2 per cent year-on-year, to set a new record of € 157 million (2010: € 154 million). This – said Siegfried Gänßlen – was especially gratifying since the company's capital spending of around € 42 million for 2011 had been higher than ever before since it was first established in 1901. “In doing so, we and our global workforce of almost 3,300 – which is also a new record for us – have laid the foundations for further growth in international competition. With their high level of commitment, our employees have made a major contribution to the company’s successful performance. Speaking on behalf of the entire Board of Management, I therefore want to take this opportunity to express our appreciation and gratitude to Hansgrohe employees around the world.”

With total capital spending of € 42 million (2010: € 33 million) during the last financial year, the Hansgrohe Group invested more than ever before in its 110-year corporate history. Once again, the lion's share of the capital went into the German locations, where 80 per cent of total production – measured in terms of revenue – comes from six manufacturing plants. Thanks to the Group's high level of equity and the solid earnings situation, it was possible for all investments to be funded from cash flow.

Siegfried Gänßlen said the Hansgrohe Group’s capital spending in 2012 would again be substantial. A major proportion of this would again go into tools and equipment for new products in order to further boost the company’s innovative power. He said the objective was to develop new products with a consistent focus on increasing the benefit for customers. “The quality of the innovations is the decisive factor in our effort to set ourselves apart from the competition and the many copycats,” stressed the CEO of Hansgrohe. “To this end, preparations are already under way for numerous innovative products as well as new concepts and approaches to solutions, with the first spectacular innovation set to be presented in the fall: a mixer featuring an entirely new operating concept, unique styling and outstanding performance in terms of the sustainable use of water as a resource.”

In spite of volatility becoming the norm: one billion in sales within our sights
Overall, the Hansgrohe Group is in a good position to achieve sustained growth in 2012, despite the unstable economic environment and the slight slowdown in the global economic growth.

“Nevertheless, greater volatility in general economic conditions and the attendant growing uncertainty among customers and market partners are increasingly having an impact on our order receipts – as happened during the final quarter of the last financial year,” said Hansgrohe chief Gänßlen in his analysis. “It’s becoming increasingly clear that volatility has now become the normal state of affairs. The challenge we face is to run a profitable enterprise and, together with our partners and customers, to continue to achieve sustainable growth.”

For this reason, the company will be placing a high priority on measures designed to enhance brand recognition and to boost its innovative strength, in addition to the systematic development of new markets and the expansion of production and logistics capacities. “Everyone at Hansgrohe will be focusing intensively on these objectives. We therefore anticipate moderate growth and stable earnings for the year 2012,” said Siegfried Gänßlen about the company's expectations for the current financial year, “with the target of one billion in sales in the medium term firmly within our sights.”