BSH Reaches Highest Revenue in Its History in 2020

BSH Hausgeräte GmbH achieved its highest annual turnover in over 50 years in 2020. Europe's leading home appliances manufacturer grew by 5.3 percent compared to the previous year, reaching EUR 13.9 billion in sales revenue. BSH recorded 8.5 percent growth in local currency terms. BSH benefited in 2020 from increased global demand for quality home appliances, as well as from its strong brands, digital innovations and reliable customer services. BSH Management Board Chairman Dr. Carla Kriwet states: "2020 was a record-breaking year for BSH. Thanks to the outstanding efforts of our employees, we managed to overcome the challenges posed by the global pandemic. Our industry is experiencing a boom as staying at home and spending time in a kitchen that makes us feel good becomes increasingly important. Our strong brand portfolio, innovative products and digital solutions enabled us to meet the wishes and expectations of our consumers."

BSH grew in all regions

Throughout the year, BSH not only recovered from the downturn that had emerged at the beginning of the pandemic in all regions but also significantly increased overall sales revenue. Last year, BSH recorded 4.8 percent growth in the Europe region (plus 8.6 percent in local currency terms). The company's turnover rose significantly, especially in Germany, Great Britain and Northern Europe. Accordingly, BSH remains the most successful company in electrical household appliances in Europe and manages the industry's leading digital ecosystem thanks to its Home Connect technology. Although the Americas market showed resilience, BSH gained additional market share. BSH achieved above-average revenue growth of 7.7 percent in the Americas region compared to the previous year (plus 10.3 percent in local currency terms). Demand particularly grew for high-capacity refrigerators and dishwashers. [caption id="attachment_123892" align="aligncenter"] Carla Kriwet[/caption] Business volume in the Asia Pacific / Africa region increased by 5.3 percent compared to the previous year (plus 7.7 percent in local currency terms). The effects of the pandemic began to be felt in China as early as February. However, starting from May, significant business improvement began with high growth rates, and successful results were achieved beyond recovering the revenue losses in the early months. Particularly in China, dishwashers saw revenue growth of over 34 percent and dryers over 59 percent. As China's strongest foreign household appliances manufacturer, BSH succeeded in gaining additional market share there. BSH also achieved growth in India and Africa and plans to expand its business significantly in emerging markets.  

All product categories and customer services grew

BSH achieved significant growth across all product categories. Cooking, refrigeration and dishwashing product categories each recorded 6 percent net revenue growth (plus 8 to 10 percent in local currency terms). Revenue from small appliances such as automatic coffee machines, kitchen robots and electric vacuum cleaners advanced with an extremely positive trend, achieving growth exceeding 9 percent (12 percent in local currency terms). Furthermore, the customer services range was extremely well received and achieved 8 percent growth (plus 11 percent in local currency terms). During the coronavirus pandemic, approximately 15,000 BSH customer service employees and BSH service partners in about 50 countries came to the aid of consumers. At the end of 2020, BSH's workforce stood at 60,000, representing an increase of approximately 3 percent compared to the previous year.  

Research and Development expenses remained unchanged

BSH continued its major investment projects in 2020 as planned. It is focusing its Research and Development activities on consumer-centric innovations, IoT solutions (Internet of Things) and digitalization of the entire value-added chain. Research and Development expenses in 2020 amounted to EUR 708 million and remained at the same level as the previous year, corresponding to 5.1 percent of total sales revenue.  

BSH growing in online retail and strengthening its position as a leading digital company in connected home appliances

BSH's online business unit grew by 25 percent last year. Consumers increasingly use online tools such as BSH brand websites to seek advice and conveniently select the right appliance from home. The Home Connect digital ecosystem supported BSH in further expanding its position as a leading supplier in both connected home appliances and future-oriented artificial intelligence use in 2020. Using the Home Connect app, consumers can see what is in their refrigerators even when away from home. Digital dishwashers optimize running time and energy consumption according to individual consumer needs. Washing machines determine the weight of laundry during the wash cycle, minimizing water and energy consumption. Most recently, the innovative kitchen robot Cookit, launched in 2020, builds confidence with automatic cooking programs downloaded from the cloud. Starting next summer, this robot will also enable consumers to create their own unique recipes in the Home Connect app. All of these Internet of Things (IoT) solutions are compatible with BSH's new fully connected home appliances. BSH customer services also use connected home appliances for remote diagnostics, with plans to implement proactive maintenance with the aid of artificial intelligence in the future. For consumers, this means an entirely new service experience that either eliminates the need for repairs or significantly reduces repair costs.

Outlook for 2021

Speaking about BSH's objectives for 2021, Carla Kriwet states: "Due to the ongoing pandemic, there will be uncertainties throughout the economy this year as well. With our global presence and proximity to our consumers, we are well positioned, and thanks to Home Connect, we will not only meet the wishes of our consumers best, but also conserve resources. I am confident that we can continue the positive developments from last year into 2021."