The home appliance industry faced a significant financial setback in 2023, with profits dropping by 25% due to "inflationary pressures" and "weak consumer confidence." Rising material and logistics costs, along with high interest rates, contributed to a decline in consumer spending on big-ticket items.
BSH, the company behind Neff, Bosch, and Siemens, also reported a decrease in pre-tax profits from £30.2m in 2022 to £24m in 2023, while profit after tax fell from £24.6m to £18.5m. Turnover also dropped by approximately 2%, from £810m to £791.2m.
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Sales of major domestic appliances declined by 9%, with total units sold falling from 2,212,200 in 2022 to 2,011,108 in 2023. While supply chain issues eased in mid-2023, disruptions such as factory flooding in Slovenia affected product availability.
Looking ahead, BSH expects market recovery to be slow over the next 12 to 18 months. It noted that while "consumer confidence is starting to rise," purchasing decisions remain cautious due to the "new higher cost of living." The company aims to mitigate financial pressures through strict cost management while continuing to focus on "quality, innovative, reliable, and environmentally friendly products."
Despite the downturn, BSH remains optimistic, believing its commitment to innovation and customer service will "provide a strong platform for long-term profitable growth."
Source: www.kbbreview.com