The net turnover reached 24.7bn DKK whereas earnings before interest and tax (EBIT) hit 2.2bn DKK. A strong second half of the year led to full-year growth of 0.5% in local currencies and net of divestments. EBIT increased approx. 200m DKK over last year, and – when adjusting for non-performance related items in 2015 and 2016 – performance EBIT increased 25% compared to 2015.
“Going into 2016, one of our top priorities was to continue the financial turnaround. With 25% increase in underlying EBIT, we are satisfied with the results we have achieved”, says Group President and CEO Mads Nipper and continues: “It is estimated that the global pump market served by Grundfos stayed flat in 2016. Our modest full-year sales growth therefore means that we have bolstered our position as the globally leading pump solutions provider. After a challenging 1st half of 2016, we are particularly happy that sales regained momentum in the 2nd half of 2016.”
Full year growth has been achieved in several significant markets like Germany, China, the United Kingdom and a number of other European and Asian markets. However, Russia and the Greater Middle East continued to suffer from low activity levels driven by low oil prices and financial uncertainty. Also, the US showed a decline in sales on the back of strong growth in 2015.
“The competition is fierce in our markets and we constantly need to focus on offering the most innovative solutions and the best delivery service to our customers, while at the same lowering our cost base”, says Mads Nipper and adds, “During 2016, we have accelerated investments in our strategic focus areas like our service business and development of digitally enabled offerings. We will continue our transformation in these areas the coming years – with the aim of always adding further value to our customers”, Mads Nipper states.