Grundfos gains significant market share by managing to grow sales organically by 5.3%. Profitability and cash flow continued to be strengthened in 2017.
With a turnover of DKK 25.6bn, 2017 was the strongest year ever in Grundfos history. Earnings before interest and tax (EBIT) amounted to DKK 2.346bn (9.2% of net turnover).
“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.” says Group President Mads Nipper.
Growth was generally strong across the world, but particularly China contributed with very high growth rates. In China, Grundfos further expanded with more sales offices across China, and succeeded in offering solutions to support China’s plans to reduce its energy consumption significantly.
European markets, including the UK, Spain, France and several Eastern European countries, showed solid growth, and the important Russian market recovered after several years of decline. Despite challenging market conditions, growth was also delivered in the USA. In South America we have been able to gain market share despite difficulties in the Brazilian market. Sales also increased in countries such as Australia, Japan, India and Korea, where Grundfos is a large-scale supplier to the machine tool industry.
“During the year, we have made considerable investments in initiatives aimed at strengthening our competitiveness. We have launched new products and solutions. By investing heavily in our global service business, we have strengthened our ability to offer innovative and high-quality services to our customers. 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,” explains Mads Nipper.
“We strive to always take a customer-centric approach, where close relations inspire better solutions and services. 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,” says Mads Nipper.
Financial key figures 2017