Grundfos Strengthens Foundation for the Future
24 March 2020
Grundfos reached its 10% profitability target one year ahead of time and secured the highest ever sales, employee satisfaction and customer loyalty. In 2019, net turnover in Grundfos increased by 3% to DKK 27.5bn, which is the highest level in Grundfos’ 75-year history. This corresponds to 2.2% organic growth in local currencies compared to 2018. Earnings before interest and tax (EBIT) grew by 16% to DKK 2.8bn, or 10.1% of turnover. Adjusted for items not related to the operations of the company, the performance EBIT reached 10.6% of net turnover, which makes 2019 the first year the Grundfos Strategy 2020 target of 10% return on net turnover has been achieved.
“We are happy with the financial result and very satisfied with our ability to drive continued growth while positively impacting the world’s climate and water challenges,” says Mads Nipper, CEO and Group President, Grundfos.
Further to the financial results, Grundfos reduced its own water consumption by 10.4% and CO2 emissions by 12.2% compared to 2018. Also, Grundfos realized its highest ever employee motivation and satisfaction score and repeated record-high customer loyalty and satisfaction results.
Most of Grundfos’ markets and applications have contributed to the growth. The Group’s core European markets and the global service business demonstrated solid growth throughout the year, while the large markets in China and Americas also experienced growth, although at lower levels than in 2018.
A solid balance sheet enables the company to make long-term decisions without risking financial independence. Equity ratio stands at 68.1% at the end of 2019.
Courtesy of Grundfos.