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Miele increases turnover by 3.2%

* After realignment of its business year, Miele reports sales of € 2.24 bn for July to December 2019 stub business year

* New subsidiaries launch with smart business models

Gütersloh – WEBWIRE

In the second half of 2019, the Miele Group achieved a turnover of € 2.24 bn – 3.2% more than in the previous year. ’This is once again evidence that we are well positioned with our products and services to increase turnover and gain market shares under challenging conditions and intense competition in the marketplace’, according to the Executive Board of the world’s leading manufacturer of premium domestic appliances. During the current year, this course for growth will be further consolidated – for example with kitchen appliances from the new Generation 7000 series, which will set standards in the market with numerous exclusive innovations. On December 31, 2019, Miele employed a workforce worldwide of 20,478 – more than ever before.

This publication of half-time figures is due to the fact that the Miele Group has changed its business year to coincide with the calendar year (instead of running from July 1 to June 30). This results in a one-off stub year. In particular, large European markets such as Austria, Switzerland, the Netherlands, Italy and, after a long Brexit-related dry spell, Great Britain, contributed to this positive development. In the highly contested German market, Miele achieved turnover growth of 2.7%. In contrast, business in Hong Kong is suffering from political unrest. In China, state intervention has resulted in a subdued real estate market – also impacting business with high-quality kitchen equipment.

Amongst the product groups, above all washing machines, tumble dryers and vacuum cleaners contributed most to sales growth. In laundry care, numerous detail improvements ensure increased user convenience: These include shorter programme cycles, the ability to add forgotten items of laundry at any time throughout the cycle and even the energy-efficient washing of individual garments. In the booming sector of rechargeable handsticks, the Triflex HX1 has got off to a very successful market start. Across all product groups, campaign models marking 120 years of Miele (Series 120) resulted in significant additional impetus. With its built-in appliances from the new Generation 7000, Miele is reasserting its leading role in the fields of innovation, design and lifestyle pleasures in the kitchen. With 3,000 model versions spanning 15 product groups worldwide, now off to a very promising start in almost all countries, this amounts to the biggest product launch in the history of the company.

Above-average growth during the reporting period was recorded by Miele Professional with machines and services for commercial operations, medical facilities and laboratories, and its Italian medical technology subsidiary Steelco. Steelco is in charge of the aspiring hospital project business within the Miele Group. Compact commercial washing machines and dryers for small businesses (Little Giants), which have been on the market since last year with a completely new model series, represent a further growth driver. In total, Professional turnover grew by more than 4%.

New impetus for growth and innovation

In order to exploit further sustainable growth potential, Miele has, as reported last October, undergone reorganisation – for example with 8 independent business units, remapped sales territories and a new location devoted to digital marketing which is currently being set up in Amsterdam (Digital Hub). The new production plant for washing machines, built by Miele in the Polish town of Ksawerów, has commenced operations on schedule. Miele Venture Capital GmbH, which brings together Miele’s stakes in promising start-ups, has further expanded its activities.

During the period under review alone, two new 100% subsidiaries were added to the portfolio: With the takeover of the business operations of Agrilution GmbH, Miele entered the future field of vertical farming – with stacked and digitally connected Plantcubes sporting an elegant design for private homes. With a minimum of effort, these offer the ideal growing conditions for, say, greens and herbs. Miele Operations & Payment Solutions GmbH offers a unique, app-based solution covering the furbishing, organisation, servicing and billing in shared laundry facilities (appWash). This can even go as far as assuming responsibility for the entire operation. This is aimed for example at student hostels, housing associations, multi-unit dwellings, campsites and launderettes. With these and other activities, Miele is pursuing its strategic goal of continuing to expand its portfolio and grow with innovative products and digital services which meaningfully complement its core business.

As per December 31, the Miele Group had 20,478 employees on its payroll. This amounted to 163 employees, or 0.8%, more than in the previous year. In Germany, Miele employs a workforce of 11,061, down 209 on the previous year.

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