Hansgrohe Group: Solid Financial Statement for Fiscal Year 2024

In the fiscal year 2024, we experienced stabilization in sales" explains Hans Juergen Kalmbach, Chairman of the Hansgrohe Board, at the annual financial press conference in Frankfurt/Main, Germany. It took place on the first day of the ISH trade fair, the world’s leading trade fair for water, heat, and air. "Sales were slightly above our expectations" says Hansgrohe CEO Kalmbach, "but we are still talking about a slight decline" As one of the leading manufacturers of design and premium products for bathrooms and kitchens, the company from Schiltach, Germany, achieved sales of 1.387 billion euros in 2024. This corresponds to a decrease of 1.3 percent compared to the previous year (1.406 billion euros). Adjusted for currency effects, sales are at the previous year’s level. Operating income decreased slightly by 1 percent to 199.9 million euros (2023: 201.7 million euros). The sales-to-income ratio rose slightly to 14.4 percent (2023: 14.3 percent). EBITDA remained almost unchanged at 256.6 million euros (2023: 256.8 million euros). The resulting EBITDA margin increased slightly to 18.5 percent (2023: 18.3 percent).

2024 was a multifaceted and challenging year. The economic environment remained difficult considering geopolitical tensions, regional uncertainties, the ongoing war in Ukraine, the situation in the Middle East, and increasing protectionism in some markets" describes Hans Juergen Kalmbach. "However, we have faced these challenges and learned from them. With our ’Hansgrohe Next-Level Strategy’ and especially thanks to the team spirit of all our employees worldwide, we will achieve sustainable growth again in the coming years. For this constructive and cooperative collaboration, I would like to express our sincere thanks to the international Hansgrohe team on behalf of my fellow board members"

Sales Level Nearly Maintained

The Hansgrohe Group sells its products (showers, shower systems, bathroom and kitchen faucets, kitchen sinks, sanitary ceramics, and bathroom furniture) in over 145 countries and is well-positioned in international markets. Despite the sluggish construction economy in Europe – particularly in Germany – but also in China, the company saw successes in project business, while traditional retail business slightly declined. Sales increases in India and Turkey were offset by stagnation in the German and Chinese markets. The Black Forest-based sanitary manufacturer still generates the largest share of its sales (326.6 million euros) in its home market. Domestic sales decreased by 1.0 percent (2023: 329.8 million euros). Foreign sales declined by 1.5 percent in the past fiscal year. Adjusted for currency effects, foreign business grew by 0.3 percent. The foreign share of the Hansgrohe Group’s total sales remained unchanged at 76.5 percent.

Qualified Employees Ensure Success

In 2024, the Hansgrohe Group employed 5,645 people worldwide (2023: 5,448). As of December 31, 3,420 (2023: 3,419) worked in Germany, and 2,225 (2023: 2,029) in international locations. Overall, the number of employees worldwide increased by 197. The largest increase in employees was at the new production facility in Serbia.

A key to the success of the Hansgrohe Group is excellently qualified and satisfied employees at all locations worldwide. The company continuously invests in the development and training of its employees. Traditionally, vocational training also plays an important role. "Discovering and promoting new talents is in our DNA" said the Chairman of the Board, Hans Juergen Kalmbach, at the "100 Years of Training at Hansgrohe" celebration in July 2024. Over the past one hundred years, the company has guided over 1,000 young people into professional life. With its state-of-the-art training center for technical and commercial professions, the company is one of the largest employers and training companies in the region. The in-house learning platform CAMPUS offers tailored training for all employees – regardless of their field, hierarchy level, or career stage. In 2024, CAMPUS hosted around 1,000 digital or in-person events attended by more than 16,000 participants.

Investments in Innovative Products, Processes, and IT

Investments made in 2024 amounted to 55.5 million euros (2023: 81.6 million euros). A significant portion went into the new production facility in Serbia, which started operations in 2023, and where the electroplating installation was completed in 2024. With this facility, exclusively producing hansgrohe faucets, the Hansgrohe Group strengthens and optimizes its European manufacturing network. The Offenburg and Wasselonne (France) facilities remain shower production sites. AXOR products are manufactured in Schiltach, Germany. The goal is to streamline material flow further: all products are assembled where the base material is produced. The company continues to pursue its "local for local" strategy and regionalizes the global supply chain. Given the geopolitical situation and further expected restrictions in global trade, the Hansgrohe Group strengthens its resilience.

Further investments were poured into the expansion and updating of the product portfolio, especially the new products for ISH 2025. The premium brand hansgrohe launches Raindance Alive, a shower program with a high-quality, refreshing design language and up to three exceptional spray types. As a new addition to the successful Raindance family, Raindance Alive elevates the entire series to a new level. The design brand AXOR presents the AXOR ShowerSphere, a new overhead shower program by Antonio Citterio. AXOR has been successfully collaborating with the Italian architect and product designer for 25 years. The new products he has designed expand AXOR’s immense scope of design freedom for individual luxury bathrooms.

The Hansgrohe Group relies on powerful IT systems and IT security and invests continuously in this area. In 2024, the focus was on the major project of switching to SAP S/4HANA planned for 2025. This enables comprehensive modernization of the IT infrastructure, optimizes business processes, and accelerates data processing through real-time analysis. Additionally, capacities are being built to leverage Artificial Intelligence (AI) opportunities for the company. The in-house "HansAI" serves as the basis for providing AI services throughout the company. To accelerate digital transformation, collaboration between IT and other business areas is promoted. Multidisciplinary teams create digital solutions that enhance processes and productivity, but also support the development of product innovations.

A significant aspect of investments is the implementation of the Hansgrohe sustainability strategy in various areas, from production to product development. Being recognized for its sustainable actions and operations, the Black Forest-based company received the German Sustainability Award 2024 in the Energy, Water, Sanitation category. In November 2024, Hansgrohe received the EcoVadis Platinum Medal, the highest award in the sustainability rating. This places the faucet and shower manufacturer in the top 1 percent of all approximately 130,000 companies (worldwide) assessed by EcoVadis in its third year of participation. EcoVadis evaluates how well a company integrates sustainability into its management system for environmental, labor and human rights, ethics, and sustainable procurement topics.

Outlook for 2025

Looking ahead, the Hansgrohe Group faces numerous, often difficult to predict challenges. "Years ago, we spoke about volatility becoming the norm. Today, it is not just fluctuations but global crises and upheavals that influence and shape our daily lives at increasingly shorter intervals" says Hansgrohe CEO Hans Juergen Kalmbach, "but we learn from every problem, face the challenges, analyze the situation, and seize our opportunities" For the past fiscal year, the Hansgrohe Group planned with commercial diligence and was able to continue its satisfactory performance. For 2025, significant investments will continue in our innovative capabilities, team flexibility, and sustainable processes and products. "With our ’Hansgrohe Next-Level Strategy,’ we set the priorities important to us and derive strategic initiatives and programs from them. This way, we set the course for renewed growth. Our motto is to constantly improve, question, and never stand still;" explains the Chairman of the Board, Hans Juergen Kalmbach, "on this basis, we see ourselves well-prepared to remain at a profitable and sustainable performance level in the upcoming fiscal year as well"

About the Hansgrohe Group – Setting the Beat of Water. Since 1901.

With its brands AXOR and hansgrohe, the Hansgrohe Group, based in Schiltach/Southern Germany, enjoys a reputation as a leader in innovation, design and quality within the bath and kitchen industry. Founded in 1901 in the Black Forest, the company gives water form and function with its faucets, showerheads and shower systems. In combination with sanitary ceramics and bathroom furniture, the company offers individual design options from a single source for holistic bathroom experiences. The 124-year history of the company is marked by innovations, such as the first hand-held shower with multiple spray types, the first pull-out kitchen faucet, and the first wall bar to hold a hand-held shower.The company holds more than 23,000 active property rights. The Hansgrohe Group stands for long-lasting quality products and for responsibility towards people and the environment. Sustainable production of resource-conserving products is central to the company’s business activities around the globe. By developing innovative technologies for faucets and showers, Hansgrohe achieves the greatest possible effect on protecting water as a resource and limiting and adapting to climate change during the usage phase of its products. As part of its consistent sustainability strategy, Hansgrohe is equipping all water-bearing products exclusively with water-saving technologies by 2030 within its "ECO 2030" initiative. With 35 subsidiaries and 22 sales offices supplying products in more than 145 countries, the globally active company in the sanitary industry is a reliable partner to its customers in all regions of the world. The Hansgrohe Group, its brands and products have won numerous awards, including more than 800 design prizes since 1974. The products of the Hansgrohe Group are found around the world: on renowned cruise ships, in luxurious 5-star and boutique hotels, in international metropolitan cities, in extraordinary spas, exclusive bathrooms of lodges and luxury villas, public facilities, as well as in countless private homes. The Hansgrohe Group’s high quality standards are ensured by eight wholly-owned production facilities: four in Germany, one each in France, in Serbia, the United States and China. In 2024, the Hansgrohe Group generated a turnover of EUR 1.387 billion. It employs around 5,600 people worldwide, about 60 percent of whom work in Germany.