The Würth Group 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%, or 3.5% 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.
“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,” said Robert Friedmann, Chairman of the Central Managing Board of the Würth Group
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.”
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% of sales, Germany is the most important individual market for the Würth Group. The German companies achieved a 5.6% 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%.
Within the core business of Würth, the Auto division (+8.7%) and Metal division (+5.7%) developed positively. Sales in the Chemicals unit of the Allied Companies grew by 8.9%. Increasing sales by 9.9%, 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.
E-business channel reports sales growth of 10.4%
Reporting sales of EUR 4.6 billion and growth of 10.4%, 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%, with the Würth app showing the strongest sales growth of 17.4%. 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.
“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.
