• Sales exceed EUR 20 billion for the first time

• Operating result at EUR 1.5 billion

• Share of e-business sales up

• Intelligent construction site management as a response to skilled worker shortages

Robert Friedmann, Chairman of the Central Management Board of the Würth Group, at the 2024 Press Conference on the Annual Financial Statements.

The Würth Group, global market leader in the development, production and sale of assembly and fastening materials, has closed the 2023 fiscal year with success, despite facing a number of economic and political challenges. At EUR 20.4 billion, sales were above the previous year (2022: EUR 19.9 billion), corresponding to an increase of 2.3 percent, or 3.5 percent after adjustments to reflect currency effects. The slight decrease in the operating result to EUR 1.5 billion (2022: EUR 1.6 billion) was, among other things, due to inflation-driven cost increases that could not be passed on fully to the market.

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“We are currently experiencing economic headwinds; however, we expect to be past the worst in the third quarter of 2024. This is why we will not change our strategy but continue to follow a countercyclical approach: We hold on to our employees and continue to invest in research and development.”

Robert Friedmann, Chairman of the Central Managing Board of the Würth Group

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It is crucial to be able to offer solutions to current requirements such as sustainable construction. To give you an example: Electric cars weigh one third more than cars with a combustion engine. Würth’s Relast® reinforcement system makes it possible to increase the load-bearing capacities of existing parking garages. This means these parking garages do not need to be torn down or rebuilt. This countercyclical approach already helped the Würth Group successfully overcome the challenges of the COVID-19 crisis. We invested in delivery capacities and good customer service.

Innovation at Würth means understanding the challenges our customers face

Würth’s research and development work addresses new issues such as sustainable construction, new technologies such as artificial intelligence or the Internet of Things (IoT) for greater efficiency on the construction site and, of course, the further development of its core business. Millions of plastic multi-purpose anchors are used by tradespeople every year. “Our vision was to develop an anchor that can shorten installation processes and reduce costs,” said Heiko Rosskamp, Head of Product Management and Development at Adolf Würth GmbH & Co. KG. “This is what we achieved with SHARK® TWIST. This anchor works with almost any common building material.”

Thinking ahead in construction site management

The skilled trades are faced with enormous challenges. In its 2023/2024 Skilled Workers Report, the German Chamber of Industry and Commerce reported that more than 50 percent of companies in Germany are unable to fill vacancies in the construction industry. In addition, companies are confronted with increasing energy costs, new requirements for sustainable construction, and a challenging urban transport infrastructure.

“The modular prefabrication offered by Würth in the field of building service systems (TGA) is a major opportunity to reduce costs significantly and increase efficiency on the construction site,” explained Heiko Rosskamp. Würth pre-assembles all of the heating and ventilation piping systems on these modules. “At the large construction site in the FOUR quarter in Frankfurt am Main, 558,000 individual parts could be reduced to 3,500 assembly units, which significantly reduced the construction time.”

Networked technology: Würth makes its expertise available to customers

At Reinhold Würth Innovation Center Curio, Würth is developing IoT-compatible cordless power tools. Power tools equipped with sensors, radio technology and software are networked via a cloud solution and can access Würth’s application knowledge. Customers can transfer relevant processing data from the cloud directly to their power tool via the IoT module in the rechargeable battery of the power tool. For Würth customers, this means an enormous increase in efficiency in times of a shortage of skilled workers and increasing documentation requirements.

Germany: the most important individual market

Accounting for more than 40 percent of sales, Germany is the most important individual market for the Würth Group. The German companies achieved a 5.6 percent increase in sales in the 2023 fiscal year; against the backdrop of a declining gross domestic product, this is a positive development. Sales of Adolf Würth GmbH & Co. KG, the Group’s parent company and largest single company, grew by 6.1 percent. Outside Germany, the Würth Group’s sales grew slightly by 0.2 percent compared to the previous year.

Within the core business of Würth, the Auto division (+8.7 percent) and Metal division (+5.7 percent) developed positively. Sales in the Chemicals unit of the Allied Companies grew by 8.9 percent. Increasing sales by 9.9 percent, the Electrical Wholesale unit reported the strongest growth. The unit’s growth was driven by the increasing demand for photovoltaic installations, heat pumps and charging stations for electric cars. The acquisition of three companies, IDG01 S.p.A. (Turin, Italy, the completion of this acquisition is still subject to the approval of the antitrust authorities), TIM S.A. (Wroclaw, Poland) and Johannes Kraft GmbH (Stuttgart-Vaihingen, Germany), is further strengthening the position of this business unit. The unit is planning sales of more than EUR 4 billion in 2024.

E-business channel reports sales growth of 10.4 percent

Reporting sales of EUR 4.6 billion and growth of 10.4 percent, the e-business channel continued its positive development in the 2023 fiscal year. Its share of total sales in the Würth Group increased to 22.4 percent, with the Würth app showing the strongest sales growth of 17.4 percent. Within the framework of the Group’s multi-channel sales model, the app is an important pillar of the e-business channel that makes it easier for Würth customers to procure goods.

More than 1,400 new employees

The Würth Group hired 1,410 new employees in the 2023 fiscal year. Currently, the Group employs 87,047 people, 43,967 of which work in sales. In Germany, the company has 27,128 employees.

Equity creates stability

A high level of equity financing provides security, particularly in challenging times. In the 2023 fiscal year, the Würth Group’s equity increased to EUR 8,761 million. This corresponds to an increase of 10.7 percent. The equity ratio grew to 48.7 percent (2022: 46.0 percent). The rating agency S&P Global confirmed the Würth Group’s “A/outlook stable” rating in 2023.

Focus on the second half of the year

The economic forecasts for Germany had been reduced significantly in the first months of the year: Today, the Organisation for Economic Cooperation and Development (OECD) merely predicts growth of 0.2 percent this year. Nevertheless, there are also positive news: Inflation has declined since the beginning of the year. As the Federal Statistical Office in Germany announced, the rate in April 2024 came to 2.2 percent, compared to 2.5 percent in February 2024. As a result, the capital markets are expecting the first interest rate cuts by the European Central Bank (ECB) in the coming weeks.

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“The Würth Group’s activities across various industries and regions, our strong sales organization across various channels as well as the trust our more than four million customers worldwide have placed in us help ensure the stability of the Group.”

Robert Friedmann, Chairman of the Central Managing Board of the Würth Group

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“We expect the macroeconomic situation to improve in the second half of 2024. What also makes us optimistic is the fact that we succeeded in acquiring 110,000 additional customers in the first four months of 2024, which is an indicator of us expanding our market share despite difficult framework conditions. The more than 4.3 million customers from various regions and business units make the Würth Group resilient against local or industry-specific economic cycles. For 2024 as a whole, we therefore expect sales to remain at the previous year’s level and a slight decline in the operating result. Assuming the economy will recover, the Group will stick to its plan of creating jobs in sales and IT as well as in the field of research and development,” Robert Friedmann said. 

All content can also be found in our online 2023 Annual Report at www.wuerth.com/ar2023.

Source: Wurth Group