PRNewswire
Bengaluru (Karnataka) [India], April 3: Freudenberg Group, a global technology conglomerate, has announced record growth in revenues and operating profits for the financial year 2024. The company achieved sales of EUR11,947.5 million, which is a 0.4 percent increase compared to last year (EUR11,902.8 million). However, exchange rate changes had a negative effect of EUR76.9 million on sales. Operating profit grew by about 4.7 percent, reaching EUR1,132.4 million, up from EUR1,081.6 million last year. This growth is largely due to the company's innovative products and its strategic expansion into key markets, especially in areas like medical technology and the energy sector.
* Operating profit rises to EUR1.13 billion (up 4.7 percent)
* Sales grow slightly to EUR11.95 billion (up 0.4 percent)
* Equity ratio stands at 57 percent (previous year: 56 percent)
* Global investments rise to EUR501.5 million (up 10.7 percent)
* Research and development investments at an extremely high level: EUR604.4 million (previous year: EUR603.6 million)
The profit margin increased to 9.5 percent (up from 9.1 percent last year). Cash flow from ongoing business activities was EUR1,288.9 million, which is EUR114.8 million less than last year. The company's equity ratio, which remains very stable, has slightly improved and is now at 56.8 percent (compared to 56.1 percent last year).
Freudenberg India reported strong sales of INR 4,015 crore, up from INR 3,803 crore in the previous year. The Freudenberg Group operates in India with 11 companies and a workforce of around 3,678 people across various business groups. The company has also invested in building a new production facility for its Vibracoustic Business Group and its joint venture, Freudenberg-NOK India. This new plant was inaugurated in Morinda, India, in 2024.
"The fiscal year 2024 was a year of stable growth in a challenging market environment. Despite continuing weakness in demand, especially in the auto industry and machine-building, we were able to increase our earnings and our sales. Due to this business success, we are able to invest large sums in our future capabilities - in research and development, facilities and technologies. Freudenberg thinks and takes action for the long term," said Dr. Mohsen Sohi, CEO of the Freudenberg Group.
"Over this period, the sales and operating profit doubled at Freudenberg, achieving an average annual growth rate of 6.6 and 9.7 percent respectively. Our investments in research and development have grown even more vigorously - by 10.8 percent. They have tripled over that period," said Sohi, who is retiring at the end of June and passing the baton to Claus Mohlenkamp.
G. Sivasailam, Director & CEO of Freudenberg Regional Corporate Center India and Managing Director, Freudenberg Performance Materials, India, said, "Freudenberg's sustained growth in India reflects our commitment to innovation, customer focused solutions, and strategic investments, exemplified by the expansion of our production capabilities, including the newly inaugurated Morinda facility. With a diverse product portfolio and a strong focus on R&D, we are dedicated to delivering greater value to our customers while contributing to India's industrial progress. As we move forward, we will continue applying our global expertise to address market needs and drive sustainable growth in the region."
Energy Efficiency and CO2 Reduction
Over the past year, Freudenberg has made significant progress in its sustainability initiatives, with a strong emphasis on reducing CO2 emissions and expanding the use of renewable energy. Despite maintaining consistent energy consumption levels, the company successfully increased its reliance on renewable energy sources. Since 2020, Freudenberg has achieved a 45% reduction in relative CO2 emissions per million euros in sales, bringing emissions down to 47.5 tonnes per million euros. This translates to an absolute reduction of approximately 200 kilotonnes of CO2, marking a 26% decline from the base year. In 2024, the company's total energy consumption stood at 2,486 GWh, with 38% of its electricity derived from renewable sources and an energy efficiency rate of 0.21 kWh per euro of sales. Freudenberg's global CO2 emissions (market-based) for the year amounted to 568,000 tonnes. Looking ahead, the company remains steadfast in its commitment to sustainability by continuously enhancing energy efficiency, increasing its share of renewables, and minimizing its environmental footprint.
About Freudenberg India
Freudenberg has held business ties with companies in India for more than 90 years. The Group has 11 production sites around India, across several different industries, and employs around 3,678 people at 20 + locations.
For more information, please visit www.freudenberg.com/company/locations/freudenberg-in-india
About the Freudenberg Group
The Freudenberg Group is a global technology group that strengthens its customers and society long-term through forward-looking innovations. Together with its partners, customers, and research institutions, the Freudenberg Group develops leading-edge technologies and excellent products and services for about 40 markets and for thousands of applications: seals, vibration control components, technical textiles, filters, cleaning technologies and products, specialty chemicals, medical products, batteries and fuel cells.
Innovation strength, strong customer orientation, diversity, and team spirit are the cornerstones of the Group. The more than 175-year-old company lives by its core values: a commitment to excellence, reliability and proactive, responsible action. In 2024, the Freudenberg Group employed over 52,100 people in 60 countries worldwide and generated sales nearing EUR12 billion. For more information, please visit https://www.freudenberg.com
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