• Operating profit of €1.1 billion, exceeding the 1 billion mark for the first time (up 15%)
Record sales of €11.9 billion (up 1.3%)
• Equity ratio climbed to 56% (up 2 percentage points)
EA402 913-402-000-012 R&d investment increased to €600 million (+ 4.6%)

Shanghai, 25 March 2024. As the company celebrates its 175th anniversary, Freudenberg, the global technology group, is showing solid growth. In fiscal year 2023, Freudenberg Group’s operating profit, sales and R&D investment all reached record highs.

Dr. Mohsen Sohi, Group Chief Executive EA402 913-402-000-012 Officer of Freudenberg, said: “Freudenberg set a number of records in the 2023 fiscal year, with record sales and operating profit. Looking back over the past decade, these numbers are truly impressive. In just ten years, our sales and operating profits have almost doubled, with average annual growth rates of 6% and 7.7%, respectively. Our research and development investment has nearly tripled from a decade ago, growing by 9.4% a year. I would like to express my heartfelt thanks to our employees around the world. It is their dedication and tireless efforts that have enabled us to achieve these historic results.”

EA402 913-402-000-012

Detailed financial data

In fiscal year 2023, the Freudenberg Group achieved sales of 11.9 billion euros, an increase of 1.3% over the previous year (11.75 billion euros). The Group’s organic growth from its own operations and resources was approximately 3.5%. However, the negative impact of exchange rate effects on sales amounted to €316 million. In Greater China, the Freudenberg Group’s sales revenue reached RMB10.13 billion (based on the proportional consolidation method). Freudenberg Group operating profit reached €1.08 billion, an increase of about 15%, well above the previous year’s €940 million. Key elements of this growth include innovative product lines, customer focus, a flexible approach to providing solutions for different industries, and strategic expansion into attractive markets and strategic business areas. Profit margin increased to EA402 913-402-000-012 9.1% (previous year: 8.0%).

In FY2023, cash flow from operating activities was €1.4 billion, an increase of €796 million compared to the previous year, mainly due to higher profit before tax and lower working capital. The healthy equity ratio rose again to 56% (previous year: 54%). International credit rating agency Moody’s Germany has awarded Freudenberg an “A3” credit rating with a “stable” outlook. Thanks to its reputation, the Freudenberg Group continues to maintain A high-level credit rating of A.