Freudenberg, the global technology group specialising in developing forward-looking innovations, has announced its financial results for the fiscal year 2022. The group has achieved profitable growth despite challenging conditions in 2022, with increased sales and profits. The company attributes its success to heavy investment in research and development, innovative products, and a solid commitment to environmental sustainability.
“Freudenberg is growing profitably, investing heavily, and driving the energy transition.” At €442 million, sales were also significantly higher for Freudenberg in India. Operating result for 2022 has improved very robust over 2021″, says Georg Graf, Regional Representative India, Freudenberg India.
Despite challenges posed by the war in Ukraine, disrupted supply chains, and high inflation, the company demonstrated resilience, increasing sales and profits. Sales for 2022 rose significantly to €11.7 billion, representing a 17 per cent increase from the previous year. Positive exchange rate effects, inflation-related price increases, and increased sales volume contributed to the growth. Operating profit also increased by 7 per cent to reach €941.8 million, a significant improvement from the previous year.
The company attributes its success to heavy investment in research and development. Despite the pandemic, the Freudenberg Group has invested over €2 billion in research and development since 2019, with €576.8 million invested in 2022 alone. This represents an increase of 15 per cent from the previous year.
Dr Mohsen Sohi, CEO of the Freudenberg Group, attributed the company’s success to its investments in future technologies. He stated, “Our business success enables us to invest in the company’s future – research and development, machinery and equipment, and the technologies of the future.” Two examples of Freudenberg’s innovative products are the hermetically sealed housings for lithium-ion vehicle batteries and the water-blocking tapes produced by Freudenberg Performance Materials for use in undersea cables. These products are crucial for transmitting clean energy, ensuring reliable transport of high voltages over great distances underwater from offshore wind turbines.
The Freudenberg Group has also invested heavily in infrastructure, with €401.5 million invested in intangible and tangible assets and real estate held as a financial investment. The company has invested worldwide, constructing two plants, Vibracoustic and Freudenberg NOK, currently underway in Morinda, Punjab, India. The company has also strongly emphasised environmental sustainability, with the construction of the new plants being designed with environment-friendly concepts. A robust rainwater harvesting system, photovoltaic installation, and energy-efficient HVAC systems are just some of the measures to achieve minimal energy loss and maximum efficiency. Additionally, wastewater is fully treated and reused to ensure zero discharge and minimal usage of fresh water.
The Freudenberg Group’s excellent financial performance has earned it an “A3” rating with a stable outlook from the international rating agency Moody’s Deutschland GmbH; Frankfurt am Main, for another year. With its innovative products, heavy investment in research and development, and a strong commitment to environmental sustainability, the Freudenberg Group demonstrates its resilience and success in the face of challenging conditions.
