Home appliance group BSH Hausgeräte GmbH reported a global turnover of €14.8bn in 2023, a dip of 7% compared with the previous year.
North America, Greater China and Europe all saw a drop in turnover by 11.3%, 10.5% and 6.3%, respectively.
It cited a challenging year of geopolitical crises, interest rate hikes, high inflation, and a decline in house moves, resulting in stagnation for the global home appliance market.
In its Emerging Markets, including Eastern Europe, the Middle East and Africa, turnover was down slightly by 2.2%, but BSH reported an increase in turnover in southern Europe.
Built-in cooking appliances, including cooling and dishcare, were most affected, but laundry and customer care remained positive.
Small home appliances sales were also down 7.2% as flooding had impacted production at its Slovenian factory in Nazarje, but it stated deliveries had been fully restored.
However, BSH has invested in new launches, such as a premium built-in oven range with AI and an integrated camera from Siemens, as well as an invisible Essential cooktop for its luxury Gaggenau brand.
“With a record total of around €850m, we are investing more in research and development than ever before, thus laying the foundation for achieving our ambitious growth targets as one of the world’s leading manufacturers of home appliances,” said chief financial officer Gerhard Dambach.
Matthias Metz said the company was pursuing a strategic roadmap to grow in all BSH regions and expand its presence in local markets: “In addition to developing market-specific product innovations, we have, for example, invested in a new service and logistics centre in Turkey and a new oven factory in Egypt for the African market.
“At our new factory in Mexico, the first cooling appliances for the North American market will roll off the production line from the middle of the year.
“At our experience and design centres in various North American cities, we give consumers the opportunity to get a broad idea of our brands and products, and we actively support our customers and partners, such as property developers, designers, and architects.
“Another example is a comprehensive concept for successfully marketing our builder business in other regions of the world.”
BSH has also invested in sustainability, with over €10million spent on more than 270 energy efficiency measures, saving around 35 gigawatt hours of energy in production.
Its dishwashers are now manufactured using stainless steel with a 47% lower carbon footprint than conventional stainless steel, from September 2023, and extended the availability of spare parts up to 15 years for large appliances and up to 10 years for small appliances.
Even though the past year was challenging, BSH is optimistic about the future. “Our company has been successful for over 55 years and is in a robust position in the current economic environment – with a clear roadmap for the future, outstanding brands, convincing innovations, and a strong team,” emphasised Matthias Metz.
He concluded: “We again want to take an active part in shaping the market in 2024, inspire consumers, and lead our customers to success in order to achieve profitable growth in all regions.”
