Grundfos has reported a record turnover of DKK25 634 million in the 2017 financial year.
The Danish pump group saw organic sales increase by 5.3% in 2017, while profitability and cash flow continued to strengthen. At DKK2346 million, earnings before interest and tax (EBIT) were 9.2% of net turnover, while 2017 profit after tax was DKK1755 million.
“We are very satisfied with the result. We have achieved the highest turnover in company history, our sales growth far exceeded the market trend, and we are well on our way to our 2020 ambition of an EBIT ratio of 10% or higher,” said Grundfos Group president Mads Nipper.
Growth was generally strong worldwide, but particularly in China where Grundfos added more sales offices and offered solutions to support the country’s plans to significantly reduce its energy consumption.
European markets, including the UK, Spain, France and several Eastern European countries, saw solid growth, and the important Russian market recovered after several years of decline. Despite challenging market conditions, the US market also delivered growth for Grundfos. In South America, the company gained market share despite difficulties in the Brazilian market. Sales also increased in Australia, Japan, India and Korea, where Grundfos is a large-scale supplier to the machine tool industry.
Nipper said that during 2017, Grundfos had made considerable investments in initiatives aimed at strengthening its competitiveness, with the launch of new products and solutions and by investing in its global service business. “Our ambition is to offer the best digital customer experience on the market. This requires considerable investments in a broad range of digital tools and solutions. Furthermore, we are collaborating closely with our customers to understand how we can best create value through digital solutions that further strengthen our core business,” said Nipper.
“We are extremely grateful that we enjoy a world class customer loyalty. We are also extremely aware that we must continue to work hard to maintain and earn the loyalty of our customers,” added Nipper.