While Grundfos’s 2016 net turnover slipped 0.5% to DKK24.7 billion, earnings before interest and tax (EBIT) increased approximately DKK200 million to DKK2.2 billion in 2016. When adjusted for non-performance related items in 2015 and 2016, performance EBIT increased 25% on 2015.
“Going into 2016, one of our top priorities was to continue the financial turnaround. With 25% increase in underlying EBIT, we are satisfied with the results we have achieved,” said Grundfos Group president and CEO Mads Nipper. “It is estimated that the global pump market served by Grundfos stayed flat in 2016. Our modest full-year sales growth therefore means that we have bolstered our position as the globally leading pump solutions provider. After a challenging first half of 2016, we are particularly happy that sales regained momentum in the second half of 2016.”
Grundfos saw full year growth in Germany, China, the UK and a number of other European and Asian markets. However, Russia and the Greater Middle East continued to experience low activity levels driven by reduced oil prices and financial uncertainty. The US market showed a decline in sales on the back of strong growth in 2015.
“The competition is fierce in our markets and we constantly need to focus on offering the most innovative solutions and the best delivery service to our customers, while at the same lowering our cost base,” added Nipper. “During 2016, we have accelerated investments in our strategic focus areas like our service business and development of digitally enabled offerings. We will continue our transformation in these areas the coming years – with the aim of always adding further value to our customers.”