Business Report and Sales

Hansgrohe Group Breaks the €1.5 Billion Sales Mark

Despite a difficult global economic environment, the Hansgrohe Group once again reports positive financial figures for the past year. "With a very good balance sheet in 2022, we are continuing our successes of the past years," explains Hans Juergen Kalmbach, Chairman of the Hansgrohe Executive Board, at the annual press conference in Frankfurt, Germany. It took place on the first day oSf the ISH trade fair, the world's leading trade fair for water, heating, ventilation and air conditioning.

We produced a total of €1.528 billion in sales. Compared with the previous year (€1.365 billion), this marks an increase of 11.9 percent. Operating profit rose to €261.6 million, which is an increase of 4.8 percent compared to the previous year (€249.7 million). The resulting sales/earnings ratio of 17.1 percent is slightly below that of 2021 (18.3 percent).

Flexibility and Team Spirit

"It is once again due to the flexibility of all our employees worldwide that such good results were achieved”, says Hansgrohe CEO Kalmbach. "On behalf of my colleagues on the Executive Board, I would like to express our gratitude to the international Hansgrohe team."

In particular, the COVID situation in China with the lockdown in Shanghai, the war in Ukraine, and the resulting effects, especially on the supply chains, have laid great demands on us. However, with our proverbial Hansgrohe team spirit, we managed to absorb the external influences in such a way, that we were able to offer our market partners the best possible service.

Broad-based Sales Growth

The strong growth in 2022, which was even higher than the company's own forecast, was based on increases in all regions, in particular also on the good sales developments in China and India, as well as in the German market. Growth in foreign business was 13.9 percent.

Last year, the Hansgrohe Group generated around 76 percent of its sales abroad, which is two percentage points higher than in 2021. As a globally active company we supply our faucets, showers and bathroom accessories to over 150 countries.

We continue to generate the biggest share of sales of €371 million in our home market of Germany. This means that domestic sales grew by 6.2 percent and are significantly higher than the German gross domestic product, which rose by only 1.9 percent in comparison¹.

¹ Press release Federal Statistical Office, Press release No. 020, January 13, 2023

Hansgrohe Continues to Create Jobs

Globally, 5,639 employees contributed to the new sales record (2021: 5,373). Of these, 3,474 worked in Germany as of the reporting date of December 31, 2022 (2021: 3,369), and 2,165 people worked at the Hansgrohe Group's international locations (2021: 2,004). Overall, the number of employees worldwide grew by 266 people.

Success Premium of €3.7 million

"Due to our strong growth, we have created over 500 new jobs, particularly at our German sites in 2021 and 2022," explains Hans Juergen Kalmbach. "Despite particular challenges due to the pandemic and our exceptional order intake, our teams succeeded in onboarding our new colleagues and integrating them in their respective areas – in addition to their day-to-day work."

In recognition of their outstanding performance in the past year, the Hansgrohe Group paid employees a success premium of €3.7 million.

"Very Good" Rating

As one of the largest employers and training companies in the Kinzigtal region, we have put our in-house training to the test in 2022. The company received the "very good" rating in the latest certification by the independent service provider Aubi-plus GmbH.

In addition, the Hansgrohe Group has once again been awarded the seal of approval for 2022 "Top Employer" award.

Record Investment in Production, Innovation and Sustainability

The 2022 investments of €89.2 million (2021: €51.3 million) are made up of numerous national and international projects:

The construction of the new production plant in Serbia, which began last year, accounts for the largest share. With this new site, the Hansgrohe Group aims to strengthen its European manufacturing network. The first fittings by the premium brand hansgrohe are to be manufactured there as early as mid-2023.

The modernization of the production plant in Schiltach, and the conversion of the Alpirsbach site into an innovation park, also had an impact.

Further investments were made in capacity expansions and automation in basic production and assembly areas, in tools for numerous new products, and also in information technology and the security of digital processes.

Investments in Sustainability

Another aspect of the investments is the implementation of the Hansgrohe sustainability strategy in a wide range of areas, from production to product development.

The German sites have already been climate-neutral² since 20212. By the end of 2022, production sites worldwide have also been converted to green power and, in addition, climate neutrality² has been achieved in all global sites in terms of direct emissions and energy consumed.

Securing Innovative Strength 

With our investments, we also secure our innovative strength. This is also regularly confirmed by external third parties. In the summer of 2022, our innovation team achieved first place in the Innovation Lab category of the Digital Lab Award from the business magazine Capital.

In addition, our company has been named one of the Top 100 Innovators of German SMEs for the sixth time in a row.

Since 1974, the company and its two brands AXOR and hansgrohe have made a name for themselves with their design expertise, counting more than 700 design awards to date.

² Climate neutrality refers to greenhouse gas emissions from Scope 1 and 2 (direct emissions and energy consumed at the sites) according to the Greenhouse Gas Protocol. Wherever possible, the Hansgrohe Group actively reduces these emissions. The remaining emissions are offset through recognized, certified climate protection projects. For more information, please visit https://www.hansgrohe-group.com/en/about-us/sustainability

2023 Outlook

The Hansgrohe Group has set itself ambitious goals for the current year and initiated multi-layered projects. "2023 is one of the most difficult financial years to forecast," says CEO Hans Juergen Kalmbach. "Inflation, war, geopolitical risks and dismal economic outlooks are not making life easy for any of us. And it is precisely at this time that we want to usher in changes under the motto 'Celebrate Change'. These will further secure the success of the Hansgrohe Group in the medium and long term."

Expansion of the Product Portfolio

A significant step is the expansion of the product portfolio. For the first time, sanitary ceramics and bathroom furniture will be launched. "This is our response to the wishes of our customers, who demand holistic bathroom experiences from a single source," explains Hans Juergen Kalmbach. "

With pioneering product innovations and inspiring presentations, we are once again living up to our reputation as an industry driver in innovation, design, quality and sustainability. After the pandemic-related break in 2021, we are therefore delighted to and to engage in personal exchange with our market partners, and to finally be back at ISH this year with our innovation-filled booth", Kalmbach continues.

Bathroom of the Future: Our Green Vision

The trade fair appearance also goes hand in hand with Hansgrohe's sustainability strategy. The Black Forest-based company has not only designed its booth under the maxim "reduce - re-use - recycle". As part of its multifaceted sustainability goals, Hansgrohe is implementing its "Green Vision" in a design study: a bathroom with 90 percent less water and energy consumption, and thus, also 90 percent less CO2-emissions that result from heating the water. "

Our vision, the 'Green Vision Beyond Water: Rethinking Bathroom Culture' becomes concrete with this concept," says Hans Juergen Kalmbach. "Individual elements are already being used in our innovations, and we will further develop others and incorporate them into our technologies and serial products. The important thing for us is creating greater awareness of our approach to water throughout the bathroom."

Further Milestones

Another milestone in the company's development will be the commissioning of the new manufacturing site in Valjevo, Serbia, in the middle of the year. "

With a total investment of €85 million, we are implementing our global manufacturing strategy at this new site. In this way, we are creating the necessary capacities, especially for the European market," says the Chairman of the Executive Board.

We have already been recruiting a core team of local specialists for months. They are working hand in hand with their German colleagues to professionally implement the upcoming start of production.

Learning from Each Other

"In the future, we will focus even more on our employees," explains Hans Juergen Kalmbach. "It is important to us to bring diversity into the Hansgrohe family and at the same time to convey our Hansgrohe mentality to the new, international teams, and learn from all cultures. Only in this way can we create the conditions to achieve our ambitious goals in every market."

For this reason, the Hansgrohe Group has expanded its board of directors to include an independent human resources department. Sandra Richter has been the Chief People Officer (CPO) for the Hansgrohe Group since March 1, 2023.

In the Interest of our Customers

Hans Juergen Kalmbach, Chairman of the Hansgrohe Executive Board, is convinced: "Even if the forecasts for 2023 predict weaker growth, the Hansgrohe Group will be well positioned for the coming years. We will offer the best possible service in the interests of our customers, as well as develop sustainable products in order to successfully serve the international markets and gain further market share."