BSH reports on record sales and reduction of delivery backlog

BSH Group reported record sales, as chief executive Carla Kirwat stated the turnover was the highest in its 50-year history.

23 Mar, 21

Home appliance manufacturer BSH Group reported record sales, at its annual press conference, as chief executive Carla Kirwat stated the turnover was the highest in its 50-year history.

In 2020, BSH reported sales of €13.9billion, an increase of 5,3% on 2019, and Kirwat said turnover  increased across all regions and all categories.

BSH grew by 4.8% in Europe (+8.6% based on local currency), and it reported turnover “rose considerably” in Germany, Great Britain and Northern Europe, making it number one in home appliances in Europe.

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The group increased sales across cooking, refrigeration and dishcare product categories, each recorded a turnover increase of around 6% (+8 to 10% based on local currency).

Turnover in the laundry category was slightly above the previous year, while consumer products’, which includes small appliances such as coffee machines, grew by over 9% (+12% based on local currency).

Of particular note, during the pandemic, BSH Group reported there had been an interest in large capacity refrigeration.

Kirwat also pointed to an expansion of e-commerce, with an increase of online sales by 25%  globally, accelerated by the pandemic.

Consumers used online to find advice and to choose their appliance from home and in 2020 the company expanded its Home Connect appliances with Bosch and Siemens dishwashers at IFA.

BSH also highlighted its sustainability credentials, with the company having become CO2 neutral across its sites worldwide and its consideration of the circular economy in product design.

In fact, as part of its sustainability plans, the group is now extending its Blue Movement home appliance rental business in the Netherlands to Germany.

And reporting on the current state of the business Kirwat said: “In spite of ongoing restrictions, BSH has seen a stong start to 2021 with large demand for products and services.”

Chief operating officer Silke Maurer said the BSH group had suffered from operational challenges of logistics and procurement, competing with “significantly bigger players” in the electronics and car industries.

She said it had impacted deliveries of dishwashers, ovens, washing machines and refrigeration, depending on the market, and had led to a backlog.

But Maurer stated BSH would be able to catch up by the end of the year on some categories, such as refrigeration.

BSH suspended production at the end of March 2020 for three weeks, but Maurer said the deliveries are dependent not just on BSH’s production capacities but also transport and availability of components.

Overall, BSH Group believes the long-term impact of the pandemic will benefit home appliance sales, with people taking a greater interest in the kitchen and in cooking.

Carla Kriwet concluded: “Due to the ongoing global pandemic, we anticipate that the world economy will continue to face uncertainties.

“With our global presence and our proximity to consumers, BSH is well-positioned to meet the challenges.

“With Home Connect, we will not only fulfill consumer needs more effectively but also conserve resources. I am confident that we will be able to continue the past year’s positive trend in 2021.”