Grundfos cements position as market leader as profits continue to grow
Denmark-based water company Grundfos posted a net turnover of 24.7 billion DKK (USD$3.5 billion) although their earnings before interest and tax (EBIT) struck 2.2 billion DKK (USD$315 million). An intense second half of the year powered them to a full-year growth of 0.5 per cent in net divestments and local currencies. Between 2015 and 2016 – when adjusted for non-performance related elements – the EBIT rose by an estimated 200 million DKK and the latent performance EBIT surged up by 25 per cent.
“Going into 2016, one of our top priorities was to continue the financial turnaround. With 25 per cent increase in underlying EBIT, we are satisfied with the results we have achieved,” Group President of Grundfos and CEO Mads Nipper stated. “It is estimated that the global pump market served by Grundfos stayed flat in 2016. Out modest full-year sales growth therefore means that we have bolstered out position as the globally leading pump solution provider. After a challenging first half of 2016, we are particularly happy that sales regained momentum in the second half of 2016.”
Notable markets like China, Germany, and the United Kingdom along with a number of other Asian and European markets have realized full-year growths. However, low activity levels brought about by oil prices driven low and financial doubt and uncertainty have contributed to the prolonged suffering the Greater Middle East and Russia have endured. The United States of America (USA) demonstrated a slump in sales after the robust growth the country experienced in 2015.
“The competition is fierce in our markets and we constantly need to focus on offering the most innovative solutions and the best delivery service to our customers, while at the same [time], lowering our cost base,” Nipper said. “During 2016, we have accelerated investments in our strategic focus areas like our service business and development of digitally enable offerings. We will continue our transformation in these areas [over] the coming years – with the aim of always adding further value to our customers.”