In 2023, Danfoss, a manufacturer of valves and actuators, made significant investments in expanding its portfolio of competitive and innovative solutions. Despite a slower growth environment, Danfoss recorded a 10% increase in profit (EBITA) in the same year. Cash flow increased by an impressive 49%. Furthermore, Danfoss recorded an 18% reduction in Scope 1 and Scope 2 emissions (before acquisitions) in 2023, which corresponds to organic sales growth of 2%.
Sales increased by 7% in local currency and by 4% (reported) to 10.7 billion euros. The operating result (EBITA) increased by 10% to 1,345 million euros, with a margin of 12.6% compared to 11.9%. EBITA excluding integration costs and other operating income and expenses reached 13.7%. Positive development in North America and Europe. Sales growth in the Asia-Pacific region was negative, mainly due to the economic slowdown in China. India continued its strong growth.
“Our 2023 results continue Danfoss' positive development with bold investments in our green growth strategy Core & Clear 2025. Despite market headwinds in the second half of the year, Danfoss delivered financial results in line with expectations”, says Kim Fausing, President & CEO of Danfoss.
Danfoss continues to endeavour to expand and maintain its market share. Sales for the year as a whole are expected to be between 10.0 and 11.5 billion euros. The EBITA margin is expected to be between 11.8% and 13.3% as the integration of the acquired companies continues and investments are made in the development of new products and solutions. The expected growth and profitability development is dependent on the development of the stability of the global supply chain, the geopolitical environment and inflation as well as general global growth rates.
