August 31, 2018
Grundfos continues to strengthen its global market position and realizes significant organic sales growth in all key priority markets.
- Organic sales (local currencies) growth of 9.5 percent against 5.5 percent in the first half of 2017
- Net turnover of DKK 12.8 billion against 12.2 billion in the first half of 2017, an improvement of 5.1 percent.
- Earnings before interest and tax (EBIT) of DKK 964 million against DKK 1,085 million in first half of 2017.
While delivering significant growth, first half of 2018 resulted in lower earnings due to Grundfos’ increased commercial pressure to drive market share combined with increasing commodity prices and currency fluctuations.
China, USA, UK and Germany are among the important countries driving solid growth, but almost all markets develop positively for Grundfos. Strong growth in the global Service Business also contributes to the overall performance.
“While we are happy with our strong organic sales growth, our EBIT for first half has been impacted by currency fluctuations and steeply increasing commodity prices. Despite this margin pressure, we have chosen to uphold high commercial activity to drive growth and market share. Furthermore, we keep high pace on our strategy execution including investments in our digital transformation, strong service sales growth and other key initiatives,” says Mads Nipper.
“I am also pleased to see that our significant unit growth accelerates our positive energy efficiency impact – and thus making major contributions to address the SDG13 challenges - UN’s Sustainable Development Goal regarding climate change,” Mads Nipper concludes.