Munich, April 11, 2024 – BSH Home Appliances today announced revenues of €14.8 billion for the 2023 fiscal year, which were virtually the same as the previous year after adjusting for currency effects. As expected, demand declined after the explosive growth of the global pandemic, and as a result, BSH revenue fell by 7 percent compared to the previous year. Despite the overall downward trend in the home appliance market in some regions, BSH increased sales and market share in several countries, including in the laundry segment. Dr. Zhiyuan Mai, CEO of BSH Home Appliances, emphasises: "We are following a clear path for the future, which will not only enable us to meet the current challenges, but also further expand our strengths. ”
As with the home appliance industry as a whole, BSH has had a challenging year as one of Europe's leading home appliance manufacturers. The geopolitical crisis, the severe global economic situation, and the resulting global home appliance market slump have brought many challenges to the development of BSH. BSH has also benefited from the pandemic-related growth in consumer goods over the past few years, but high inflation, a sharp rise in interest rates and the resulting downturn in the global real estate market have had a significant impact on the consumer environment in 2023. "The ongoing global economic and geopolitical crisis has completely changed the landscape of the entire appliance industry. In order to further strengthen BSH's competitiveness and finance the necessary investments, we need to keep a close eye on the cost situation and plan our personnel accordingly for the future. "In a challenging environment, BSH has once again demonstrated strong corporate resilience and significantly outperformed the market overall, thanks in large part to the dedication of our approximately 60,000 employees worldwide." ”
Member of the Board of Directors of BSH Home Appliances (from left to right: Schubert, Dybach, Mai Zhiyuan, Tang Shanda, Rudolf Klötscher)
Currency effects had an impact on revenues in all regions
Despite stable market share, BSH revenue in North America (USA/Canada) decreased by 11.3 percent due to weak demand and the main impact of the competitive environment.
BSH Greater China revenue declined by 10.5 percent, a trend mainly due to unfavorable currency effects and a slowdown in China's economic growth. Despite the fierce price competition from Asian home appliance manufacturers, BSH maintains its position as the leading foreign home appliance manufacturer in the Chinese market.
At the same time, due to the downturn in the real estate market and its impact on the important embedded appliance business, BSH also saw a decline in home appliance sales in Europe, with a revenue decline of 6.3 percent thanks to its price advantage in the premium category. Despite the decline, especially in the German home market, BSH achieved positive results with revenue growth in regions such as Southern Europe.
In the Emerging Markets Area, which includes Eastern Europe, the Middle East and Africa, revenue decreased slightly by 2.2%. In addition to the full withdrawal from the Russian market, BSH achieved strong business momentum in Turkey, contributing to a slight increase in revenue in the emerging markets.
A clear roadmap for the future and growth targets for all regions
BSH is confident about the future. "Our goal is very clear: with an excellent brand portfolio, powerful, innovative and durable high-quality products, we want to inspire consumer well-being and at the same time lead our customers and retail partners to success," Dr. Mai Zhiyuan emphasized. In addition to developing innovative products for different market needs, we have invested in a new service and logistics center in Turkey and a new oven plant in Egypt for the African market. In addition, at the new plant in Mexico, production of the first refrigeration products for the North American market is expected to begin in the middle of the year. Our Brand Inspired Experience Centers in cities across North America provide consumers with the opportunity to learn more about our brand and products, and actively support our customers and partners, such as real estate developers, designers and architects. We have also developed a successful marketing strategy in other parts of the world to successfully expand our business with real estate developers. ”
BSH Miami Brand Inspiration Experience Center
Laundry products category and customer service business growth
Last year, sales related to kitchen products fell significantly due to a decrease in real estate transactions, which also affected the overall demand for home appliances, especially in the embedded segment. This is particularly true for kitchen appliances, in other words, ovens and stoves, as well as refrigeration products and dishwashers.
Nevertheless, BSH's Laundry Products & Customer Service business achieved positive results thanks to its comprehensive service portfolio.
In the Household Appliances segment, revenue for small appliances decreased by 7.2 percent, due to production disruptions at BSH production sites in Nazarje, Slovenia, due to flooding. BSH has now fully restored its delivery capacity.
Bringing innovative products with real added value to consumers
Building on its strong brand portfolio, BSH presents and launches several innovative products to the global market in 2023, which have been developed to meet the individual needs of consumers.
This is proven in the market success of the Bosch Cookit smart cooker. At the end of 2023, this product was named the best kitchen equipment with cooking functions by the authoritative German consumer organization Stiftung Warentest.
The Bosch Cookit smart cooker was named the best kitchen equipment with cooking functions
Siemens Home Appliances' latest series of high-end built-in ovens offers a solution for perfect baking and baking results, with artificial intelligence AI technology and a built-in camera that can automatically identify dishes and recommend the best cooking settings for consumers.
BSH has always adhered to a high standard of design, pushing the trend of luxury kitchen simplicity to new heights. For example, the unique design of Gaggenau's luxury brand, for example, is perfectly integrated with the ultra-thin Dekton countertop, adding new creative possibilities for architects and designers.
Gaggenau's induction cooktops are integrated with the ultra-slim Dekton worktops through innovative technology
High investment and record R&D investment are a solid foundation for achieving growth targets
Thanks to forward-looking planning, BSH has built a solid economic foundation even in challenging times and can continue to make targeted investments for the future. BSH spent €600 million, or around 4 percent of total revenue, with these investments focused on products and growth strategies worldwide. Dr. Dybach, Chief Financial Officer of BSH Home Appliances, said: "Our record investment in research and development is around 850 million euros, which is more than ever before, and this is the basis for our ambitious growth targets as one of the world's leading manufacturers of household appliances. ”
Focus on sustainable products and production processes
BSH continues to invest in sustainability. In the past year alone, BSH has invested more than 10 million euros and implemented more than 270 energy-saving measures, resulting in energy savings of around 35 gigawatt hours in production. For example, BSH installed a heat recovery system at its refrigeration plant in Giengen, Germany, and built the largest photovoltaic system in the entire Bosch Group in China.
BSH is already playing an important role in the development and production of materials that are as environmentally friendly as possible: Since September 2023, dishwashers at BSH's production site in Dillingen, Germany, have been made of stainless steel, which has a 47 percent lower carbon footprint[1] than conventional stainless steel. This stainless steel is used throughout Europe in Class A and Class B energy-consuming dishwasher products.
In addition, BSH always pays attention to the quality and durability of its products. In order to offer a sustainable option, BSH last year extended the supply period of spare parts to 15 years for major appliances and 10 years for small appliances [2]. For most consumers, a longer guarantee of spare parts supply from the date of purchase is assured. In this respect, BSH's initiatives go far beyond the legal requirements of the European Union.
BSH dishwasher production site in Dillingen, Germany
Outlook for the 2024 fiscal year
Despite the challenging past year, BSH is confident about the future. "Our group of companies has been successfully going through a successful journey for more than 55 years and is in a strong position in the current economic environment – we have a clear roadmap, a great brand, convincing innovations and a strong team. We once again look forward to actively participating in shaping the market in 2024 to achieve profitable growth in all regions of the world by inspiring consumer happiness and leading customer success." ”
The year 2024 marks an important milestone for BSH to celebrate its 30th anniversary in China. With strong corporate resilience and innovative development, BSH will continue to be committed to long-term sustainable development in China, and continue to improve the quality of life at home through continuous R&D investment and leading product strength, bringing them satisfaction and happiness beyond expectations.