Business Report and Sales
Despite the impact of the COVID-19 pandemic, the Hansgrohe Group finished the 2020 financial year successfully. Here, you can find the most important facts and figures on our company’s finances at a glance, and in detail in the latest business report. You can also learn more about our business strategy, as well as data and facts about the Hansgrohe Group worldwide.
Turnover and other figuresDespite the impact of the COVID-19 pandemic, the Hansgrohe Group finished the 2020 financial year successfully. We generated sales of €1.074 billion, which is a slight drop of 1.4 percent compared to the previous year. Adjusted for currency effects, sales were 0.3 percent lower than in 2019 (€1.088 billion).
The operating profit rose to €197.0 million, an increase of 9 percent compared to the year prior (€180.6 million) – the result of one-time effects. For example, marketing and sales-related costs decreased in 2020 due to the pandemic, resulting in a profit ratio of 18.3 percent (2019: 16.6 percent). At the same time, the equity ratio increased to 54 percent in the year under review (2019: 52 percent).
Overcoming the challenges of the pandemic“The past year has taught us a great deal,” says Hans Juergen Kalmbach, Chairman of the Executive Board, Hansgrohe SE. “Thanks to the extraordinary dedication of all our employees, Hansgrohe was able to overcome the challenges and has emerged from this crisis mode in a stronger position."
Around the world, people in our company have enabled a new way of working in this unusual situation and achieved outstanding results with our customers. "We even managed to set new sales records for a few months, for which I would like to thank the international Hansgrohe team and the Hansgrohe business partners also on behalf of my colleagues on the Executive Board", adds Kalmbach.
Breaking new groundBut the figures aren’t the only indicators of successful business activities: "Together we have all developed a new sense of community. We can feel the necessity to break new ground and sensibly exploit new technologies. And we have become much more aware of our social and corporate responsibility,” the CEO of the Hansgrohe Group emphasizes.
Team-oriented crisis management
Protecting health as a top priorityFrom the very beginning of the pandemic, our top priority was to protect the health of all Hansgrohe employees and their families. At the same time, we were able to maintain normal operations, as well as continue serving all customers and supplying them with the usual Hansgrohe service.
The employees compensated for the inconsistent volume of orders, which fluctuated from one month to the next due to the pandemic, using accrued overtime, flextime, and vacation days, and structured their work with great flexibility during these months, resulting in record sales toward the end of the year. And within a very short period, Hansgrohe made it possible for employees to work from home wherever possible.
As a thank-you for everyone’s dedication and flexibility, the company rewarded the outstanding performance of its national and international teams with a COVID-19 bonus totaling €3 million.
Exceptional working conditionsThe Top Employers Institute put the Hansgrohe Group’s employer qualities to the test with its certification process in 2020. The company was assessed based on a catalog of more than 350 criteria examining key questions about working conditions. In January 2021, Hansgrohe was awarded “Top Employer 2021” status in Germany for exceptional working conditions.
Particularly in the areas of company values, ethics, integrity, and digital HR, we performed better than average.
Strong growth variance in marketsDue to the extremely difficult economic environment worldwide, the percentage of the Hansgrohe Group’s sales generated abroad dropped from 76 percent to 73 percent in 2020. Conditions varied widely from one market to the next, prompted by the spread of COVID-19 and the countermeasures taken.
Increasing sales in the Chinese marketThe very few countries that imposed a strict lockdown at the beginning of 2020, such as China, were able to get back on course during the year, which helped the company increase sales in the Chinese market by nearly 7 percent compared to 2019, adjusted for currency effects.
Developments in other regions of the worldOther regions didn’t feel the effects of the pandemic until later. National economies therefore struggled to different degrees, with lockdowns imposed for different lengths of time. There were even some major fluctuations inside Europe.
In Germany, the construction industry proved to be very stable, so that Hansgrohe’s sales increased to €291 million. With extraordinary growth of 12 percent in the domestic market, this remarkable development in sales helped the company compensate for drops in sales in other markets such as the US, the UK, and Spain.
Investments in product innovations and expansion of the product portfolio
ESS, the inventor of the Easy Drain shower channel, develops innovative bathroom solutions and currently employs 102 people at its two locations in The Netherlands and in Germany. Hansgrohe plans to use ESS as a center of expertise for water drainage solutions throughout the bathroom and to further develop and successfully market this category together.
Black Forest ingenuityThe Hansgrohe Group is highly innovative, which is also a growth factor. In 2020, the ingenuity of the 120-year old company, was recognized once again in the “Top 100” competition as one of the most innovative small and medium-sized enterprises in Germany.
Practical products such as the new hansgrohe DogShower contribute to brand awareness and company growth, just like the high-tech, digital hansgrohe RainTunes shower system.
The collaboration of the company’s design brand AXOR with renowned international design studios, and the joint creation of new successful faucet collections also do their part.
Investments in various areasThis commitment to innovation is expressed in the amount invested in 2020: €46.8 million (2019: €53.7 million). The largest portion of the investments went into tools for new products, as well as machinery. Investments in IT and digital processes were increased compared to the previous year.
The “HansgroheNo. 1” goal encompasses outstanding innovation, close proximity to customers, growth potential, perception as the “Best Employer,” and responsible operations.
On the way to climate neutralityWith the founder’s son Klaus Grohe at the helm, Hansgrohe acquired its green brand logo as a symbol for a “Green Company” in the 1980s. The resulting commitment of all the employees has shaped the sustainable focus of the company’s values. During this decade, the Green Company goals are centered around the climate compatibility of locations and products.
The German locations shall be climate-neutral by the end of 2021, with all Hansgrohe locations around the world to follow in 2022. The goal is to make the entire company, including all its products, climate-neutral by 2030.
A Look Ahead
The signs have been very positive during the first few months of the current year. Overall, the market is developing in a positive direction, even if the increasing prices of raw materials have a negative impact.
Further development of digital processesWe’re extremely confident about further development of all digital processes, whether it’s in production, logistics, administration, or customer communication (e.g. the Hansgrohe AquaDays, an on-demand platform that has already provided more than 170,000 visitors with an overview of 2021 product innovations).
In conclusion, CEO Hans Juergen Kalmbach says: "The COVID-19 crisis has been an unthinkable challenge for all of us. But from a positive perspective, it has served as a catalyst and offers opportunities to significantly accelerate long-term processes and further prepare the Hansgrohe Group for the future.”