In 2022, the family-owned company will generate sales of EUR 467.7 million through its professional audio solutions
Wedemark, June 27, 2023 - In the 2022 fiscal year, the Sennheiser Group is further expanding its strong position as a provider of professional audio solutions and achieving sustainable growth on its own. Sales of professional audio solutions rose 26 percent to 467.7 million euros. This not only allowed the company to achieve the set goals, but also far exceeded expectations. In 2022, the independent family business has made several sustainable investments for future development. These results were achieved, in particular, through the sale of the consumer electronics business and the focus on professional customers.
One year after announcing its focus on the professional business, the Sennheiser Group has achieved very positive developments. In addition to 2020, when the epidemic broke out, in the past few years, the sales of professional audio solutions have achieved continuous growth. In 2022, this growth will accelerate further. The company is thus able to further expand its strong position as a provider of professional audio solutions.
“We have managed to maintain the positive momentum we have had in 2021. While we, like many other companies, have faced significant macroeconomic challenges during the year, by focusing our business on professional audio solutions we have not only been able to achieve substantial growth, but also increased profitability," said co-CEO Dr Andreas Sennheiser. In FY2022, particular growth drivers will come from increased demand for professional conferencing solutions in the emerging hybrid office and teaching model, as well as the recovery of the events industry.
"2022 has proven that the company strategy we have formulated is correct," said co-CEO Daniel Sennheiser. “This is yet another example for us of what our people can achieve with strength, drive and passion, even in challenging times. We are grateful for that.” growth, so following the sale of the consumer electronics business, the company expects its business to return to its original volume faster than previously forecast.
The total sales of the Sennheiser Group in the 2022 fiscal year will be 507.4 million euros. By 2021, the consumer electronics business will account for about half of the group's total sales, and there are still two months in 2022 that will include the performance of this business segment. Earnings before interest and taxes (EBIT) amounted to EUR 114 million. This includes the special impact of the sale of the consumer electronics business.
Sales growth in all regions
The Sennheiser Group achieved sales growth in all regions. The Americas region generated sales totaling 177.8 million euros, making it the most dynamic market in the world; sales in this region increased the most, reaching 41.1%. Sales in the Asia-Pacific region reached 93 million euros, an increase of 24.1%. Developments in the Asia-Pacific region are particularly noteworthy, as it was the consumer electronics business that was the most prominent in the Asia-Pacific market prior to its sale. Sennheiser has retained the Group's overall framework structure in the region - which pays off for the company in 2022 and also brings a very positive business development for the Specialty segment. Overall, due to the long-term control of the epidemic, the region's recovery has been relatively slow. The region with the highest sales was still Europe, the Middle East and Africa, reaching 196.9 million euros. Growth in this region was 15.5 percent; Business Communications was particularly active in this region.
sustainable investment for the future
"In line with our corporate strategy, we have announced plans for sustainable investments in the core competencies of the Sennheiser Group. We are building strength and expanding our workforce, especially in research and development and at our production sites," said Sennheiser Co-Chief Executive Executive Andreas Sennheiser said.
In 2022, the company's investment in research and development will total 41.8 million euros, accounting for about 8% of total sales. At the same time, research and development was once again positioned as a core function of the Sennheiser Group, with the specific aim of better developing the software portfolio in a more efficient manner. The focus here is on creating digital solutions that offer added value to customers by combining hardware, software and services. The company is also active in research in the fields of artificial intelligence, cloud processing and future wireless technologies.
At the same time, the company is continuing to drive the transformation of its overall IT infrastructure towards a digital business model. In 2022, Sennheiser will invest more than 4.5 million euros in this area, and plans to continue to increase investment by tens of millions in the next few years. In order to be more customer-centric in everything it does, the company has made investments including ERP integration, developing a group-level data architecture and implementing a responsive service organization.
By investing in its supply chain, the Sennheiser Group is coping with the uncertainties caused by geopolitical developments. “We continue to develop our supply chain and continue to expand our own production capabilities. Although supply challenges are still inevitable at times, these initiatives allow us to be a reliable partner to our customers. During the last fiscal year, we were able to meet almost all demand," said co-CEO Daniel Sennheiser. Currently, the company's investments are focused on strengthening its own production sites, including the factory at its headquarters in Wedemark, and expanding its factory in Brasov, Romania. In 2022, the total investment in these projects is 17.8 million euros. "We are convinced that our production capabilities can provide important strategic added value. Last year's global supply chain challenges confirmed this approach," said co-CEO Dr. Andreas Sennheiser. "Furthermore, this is the best way for us to ensure the quality of our Sennheiser and Neumann products, which sets us apart."
Sennheiser Mobility is an emerging business area. "Electromobility is gaining in importance every day, and we are also establishing our company's position in the automotive industry. Our goal is that this sector will play a decisive role in shaping the audio experience of the future," says Dr. Andreas Sennheiser. "Specifically, we see The potential of linkage between AMBEO immersive audio technology and the field of business communication: because in the future, vehicles will gradually become the communication center for online meetings."
Co-CEO Daniel Sennheiser set clear premises for future development: "In order to shape the future of the audio industry, we need the best teams in the industry. That is why we are continuously investing in team development." Andreas Sennheiser adds: "At the end of the day, the knowledge, experience and passion of our people are at the root of everything we provide to our clients."
About the Sennheiser Group
Creating the future of audio for customers and creating a unique sound experience - this is the common vision of the employees of the Sennheiser Group around the world. Sennheiser is an independent family business founded in 1945. It is now jointly managed by the third generation of the family Dr. Andreas Sennheiser and Daniel Sennheiser. It is one of the leading manufacturers in the field of professional audio technology.
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