Grundfos gains further global market share and delivers record high sales, while maintaining solid profitability.
In 2018, net turnover in Grundfos increased by DKK 1.1bn to DKK 26.7bn, which is the highest level ever. Measured in local currencies, this equals an organic sales growth of 6.6%. Earnings before interest and tax (EBIT) grew by DKK 53m to DKK 2,400m.
“It has been another strong year for Grundfos, where we have gained global market share. We have reached the highest customer loyalty and employee motivation and satisfaction scores in company history. And we have seen continued strong traction on our strategic initiatives especially within digitalization and service,” says Mads Nipper, CEO and Group President, Grundfos.
“We are very satisfied with our ability to drive continued growth and positively impact the world’s climate and water challenges at the same time. Despite growth in EBIT, however, our profitability ended slightly below our own expectations, due to investments in growth, increasing material prices, and negative currency developments,” says Mads Nipper.
Sales increased in important markets including China, the US and Western Europe. Furthermore, the global service business contributed significantly to reaching the highest organic growth rate since the end of the financial crisis almost 10 years ago.
“We gain momentum from the growing demand for sustainable solutions within water and energy efficiency. We are grateful that our customers and partners share our ambition to implement innovative and efficient solutions that are better for our planet,” says Mads Nipper.
Financial highlights from 2018:
- Net turnover increased by DKK 1.1bn to DKK 26.7bn
- Organic sales growth at 6.6 %
- Earnings before Interest and Tax (EBIT) reached DKK 2,400m