The technology company Freudenberg demonstrated resilience in a difficult environment during the fiscal year 2022. It was able to increase both sales and profits during the year. Aside from the impact of the war in Ukraine, the Freudenberg Group had to grapple with disrupted supply chains, high inflation, and the availability of energy and raw materials. “We have handled the current challenges well so far,” said Dr. Mohsen Sohi, CEO of the Freudenberg Group, as its financial figures were made public. “Freudenberg is growing profitably, investing heavily, and driving the energy transition.” At €442 million, sales were significantly higher for Freudenberg in India as well. Operating result for 2022 has improved very robust over 2021”. Said Mr. Georg Graf, Regional Representative India, Freudenberg India.
The figures in detail
At €11,753.1 million, sales for 2022 were significantly above the figure of €10,038.7 million for the previous year. The increase largely resulted from inflation-related price increases of about €700 million, positive exchange rate effects of about €500 million, and an increase in sales volume of about €400 million.
In 2022, Freudenberg was able to achieve an operating profit of €941.8 million. This was significantly higher than the figure of €877.3 million for the previous year.
At €607.7 million, cash flow from ongoing business activities was below the amount for the previous year, which was €861.8 million. One reason for the change was a substantial rise in working capital. The already comfortable equity capital ratio increased again in the year under review and is now 54.0 percent (previous year: 50.2 percent).
The international ratings agency Moody’s Deutschland GmbH, Frankfurt am Main, has continued to give Freudenberg an “A3” rating with a stable outlook. The Freudenberg Group has thus earned the excellent “Single-A Rating” once again.
Investments
Adjusted for acquisitions, investments in intangible and tangible assets, as well as real estate held as a financial investment, amounted to €401.5 million (previous year: €304.8 million.)
The Freudenberg Group has invested worldwide: As a part of the strategic investment announced in 2020, Freudenberg India, in Dec 2022 began the construction of 2 plants, Vibracoustic and Freudenberg NOK at Morinda in Punjab. The project is on track so far and construction work will be completed in early 2024.
The entire design and construction are done with environment-friendly concepts. We will have a robust rainwater harvesting system in place. Photovoltaic installation is also being ensured to cover about 30% of the total power needs for the facilities. Modern utility arrangements like Bus duct systems for power distribution to machines, energy-efficient HVAC systems etc. to have been considered to achieve minimal energy loss and maximum efficiency.
