Vorwerk Press Releases

23.05.2019

MASSIVE INVESTMENTS IN DIGITAL BUSINESS MODELS

Wuppertal, May 23, 2019 – The Group’s growing success in China, significant investments in digital applications and the new Re-search and Development building and new motor production facili-ty at its production site in Laaken, Wuppertal, were the key focus-es of the Vorwerk Group’s annual press conference.

Vorwerk & Co. KG Managing Partner Reiner Strecker and Dr. Hendrik Wehr, Senior Vice President of Production at Division Engineering, welcomed the members of the press to the new building on the Wupper River.

In the last financial year, 2018, both business volume and consolidated sales were marginally down on the previous year at 3.6 billion and 2.8 billion euros, respectively.

Taking a look at the latest figures and business at the start of 2019, Reiner Strecker placed particular emphasis on the lively demand for the new Ther-momix TM6. “We made a promising start in 2019, which is why we expect to see the business grow this year,” said the Managing Partner.

“We already began investing heavily in our infrastructure and in digital busi-ness models several years ago, using only our own resources. This realignment of the business will cost us a total of up to 500 million euros,” explained Reiner Strecker. The company’s intention is clearly set out: “We want not only to produce high-quality household products, but also to develop and sell the best digitally supported products to give our customers added value every day.”

In 2018 alone, Vorwerk released 40 million euros for digital development. That sum is made up of staff as well as operating and project costs. It does not include investments in infrastructure, such as the new buildings in Wuppertal.

Dr. Hendrik Wehr detailed those investments in his address: We at Division Engineering have invested 100 million euros in our sites,” says the Senior Vice President of Production. Digitalization and flexibility were of the utmost im-portance here. “Flexible work methods and digital processes already define our day-to-day activities,” he continued, and was backed up by Reiner Streck-er, who added: “We know that customer demands are changing fast and also that we have to speed up our processes and make them more efficient. And we believe we are well on the way to achieving that.”

Where the international markets were concerned, Reiner Strecker made a point of mentioning developments in China: “With the Thermomix, we have clear growth rates in excess of 100 percent there and for 2019, we expect to see revenues in the region of 200 million euros – an amazing development! Our business in China has gone from strength to strength since we opened there six years ago.“

A brief summary of the individual business segments – Facts and figures:
With sales totaling 1.1 billion euros, the Thermomix Division once again re-mains the biggest earner in the Vorwerk Group, despite a slight decrease in revenues compared with the previous year (3.6 percent down).

The Kobold Division’s sales also fell slightly to total 757 million euros (4.5 per-cent down).

JAFRA Cosmetics reported total sales of 336 million euros, slightly down on the 363 million euros of the previous year. The decline is chiefly due to the adverse effects of the Mexican peso exchange rate.

Vorwerk flooring generated a sales volume of 49 million euros, a decrease of 16.2 percent in line with the negative market trend.

The akf group reported revenues equal to those of the previous year and upped its new business to 1.3 billion euros.

For the financial year 2019, the Vorwerk Group expects a growth in sales.

ABOUT VORWERK

The Vorwerk & Co. KG family enterprise was founded in 1883. The holding company’s registered office is located in Wuppertal, Germany. At the head of the corporate group are the Managing Partners Reiner Strecker and Frank van Oers. Vorwerk’s core busi-ness encompasses both the production and sale of high-quality household products (Thermomix kitchen appliance, Kobold vacuum cleaner, Twercs tools, Temial Tea Maker, and cosmetics (JAFRA Cosmetics). Vorwerk always seeks direct contact to the customer – be it through direct selling, via its own e-shops or its Vorwerk stores in good inner-city locations. The Vorwerk family also includes the akf bank, Vorwerk flooring and its sister group, HECTAS. Worldwide, there are more than 624,000 people working for Vorwerk, some 611,000 of whom are independent advisors. Vorwerk gen-erated consolidated sales of 2.8 billion euros (2018) and operates in more than 80 countries.

MEDIA CONTACT
Vorwerk & Co. KG
Michael Weber
Head of Corporate Communications
Tel.: +49 202 564-1247
Email: presse(at)vorwerk.de

Publication free of charge – specimen copy requested

23.05.2019

MASSIVE INVESTMENTS IN DIGITAL BUSINESS MODELS

Wuppertal, May 23, 2019 – The Group’s growing success in China, significant investments in digital applications and the new Re-search and Development building and new motor production facili-ty at its production site in Laaken, Wuppertal, were the key focus-es of the Vorwerk Group’s annual press conference.

Vorwerk & Co. KG Managing Partner Reiner Strecker and Dr. Hendrik Wehr, Senior Vice President of Production at Division Engineering, welcomed the members of the press to the new building on the Wupper River.

In the last financial year, 2018, both business volume and consolidated sales were marginally down on the previous year at 3.6 billion and 2.8 billion euros, respectively.

Taking a look at the latest figures and business at the start of 2019, Reiner Strecker placed particular emphasis on the lively demand for the new Ther-momix TM6. “We made a promising start in 2019, which is why we expect to see the business grow this year,” said the Managing Partner.

“We already began investing heavily in our infrastructure and in digital busi-ness models several years ago, using only our own resources. This realignment of the business will cost us a total of up to 500 million euros,” explained Reiner Strecker. The company’s intention is clearly set out: “We want not only to produce high-quality household products, but also to develop and sell the best digitally supported products to give our customers added value every day.”

In 2018 alone, Vorwerk released 40 million euros for digital development. That sum is made up of staff as well as operating and project costs. It does not include investments in infrastructure, such as the new buildings in Wuppertal.

Dr. Hendrik Wehr detailed those investments in his address: We at Division Engineering have invested 100 million euros in our sites,” says the Senior Vice President of Production. Digitalization and flexibility were of the utmost im-portance here. “Flexible work methods and digital processes already define our day-to-day activities,” he continued, and was backed up by Reiner Streck-er, who added: “We know that customer demands are changing fast and also that we have to speed up our processes and make them more efficient. And we believe we are well on the way to achieving that.”

Where the international markets were concerned, Reiner Strecker made a point of mentioning developments in China: “With the Thermomix, we have clear growth rates in excess of 100 percent there and for 2019, we expect to see revenues in the region of 200 million euros – an amazing development! Our business in China has gone from strength to strength since we opened there six years ago.“

A brief summary of the individual business segments – Facts and figures:
With sales totaling 1.1 billion euros, the Thermomix Division once again re-mains the biggest earner in the Vorwerk Group, despite a slight decrease in revenues compared with the previous year (3.6 percent down).

The Kobold Division’s sales also fell slightly to total 757 million euros (4.5 per-cent down).

JAFRA Cosmetics reported total sales of 336 million euros, slightly down on the 363 million euros of the previous year. The decline is chiefly due to the adverse effects of the Mexican peso exchange rate.

Vorwerk flooring generated a sales volume of 49 million euros, a decrease of 16.2 percent in line with the negative market trend.

The akf group reported revenues equal to those of the previous year and upped its new business to 1.3 billion euros.

For the financial year 2019, the Vorwerk Group expects a growth in sales.

ABOUT VORWERK

The Vorwerk & Co. KG family enterprise was founded in 1883. The holding company’s registered office is located in Wuppertal, Germany. At the head of the corporate group are the Managing Partners Reiner Strecker and Frank van Oers. Vorwerk’s core busi-ness encompasses both the production and sale of high-quality household products (Thermomix kitchen appliance, Kobold vacuum cleaner, Twercs tools, Temial Tea Maker, and cosmetics (JAFRA Cosmetics). Vorwerk always seeks direct contact to the customer – be it through direct selling, via its own e-shops or its Vorwerk stores in good inner-city locations. The Vorwerk family also includes the akf bank, Vorwerk flooring and its sister group, HECTAS. Worldwide, there are more than 624,000 people working for Vorwerk, some 611,000 of whom are independent advisors. Vorwerk gen-erated consolidated sales of 2.8 billion euros (2018) and operates in more than 80 countries.

MEDIA CONTACT
Vorwerk & Co. KG
Michael Weber
Head of Corporate Communications
Tel.: +49 202 564-1247
Email: presse(at)vorwerk.de

Publication free of charge – specimen copy requested

23.05.2019

MASSIVE INVESTMENTS IN DIGITAL BUSINESS MODELS

Wuppertal, May 23, 2019 – The Group’s growing success in China, significant investments in digital applications and the new Re-search and Development building and new motor production facili-ty at its production site in Laaken, Wuppertal, were the key focus-es of the Vorwerk Group’s annual press conference.

Vorwerk & Co. KG Managing Partner Reiner Strecker and Dr. Hendrik Wehr, Senior Vice President of Production at Division Engineering, welcomed the members of the press to the new building on the Wupper River.

In the last financial year, 2018, both business volume and consolidated sales were marginally down on the previous year at 3.6 billion and 2.8 billion euros, respectively.

Taking a look at the latest figures and business at the start of 2019, Reiner Strecker placed particular emphasis on the lively demand for the new Ther-momix TM6. “We made a promising start in 2019, which is why we expect to see the business grow this year,” said the Managing Partner.

“We already began investing heavily in our infrastructure and in digital busi-ness models several years ago, using only our own resources. This realignment of the business will cost us a total of up to 500 million euros,” explained Reiner Strecker. The company’s intention is clearly set out: “We want not only to produce high-quality household products, but also to develop and sell the best digitally supported products to give our customers added value every day.”

In 2018 alone, Vorwerk released 40 million euros for digital development. That sum is made up of staff as well as operating and project costs. It does not include investments in infrastructure, such as the new buildings in Wuppertal.

Dr. Hendrik Wehr detailed those investments in his address: We at Division Engineering have invested 100 million euros in our sites,” says the Senior Vice President of Production. Digitalization and flexibility were of the utmost im-portance here. “Flexible work methods and digital processes already define our day-to-day activities,” he continued, and was backed up by Reiner Streck-er, who added: “We know that customer demands are changing fast and also that we have to speed up our processes and make them more efficient. And we believe we are well on the way to achieving that.”

Where the international markets were concerned, Reiner Strecker made a point of mentioning developments in China: “With the Thermomix, we have clear growth rates in excess of 100 percent there and for 2019, we expect to see revenues in the region of 200 million euros – an amazing development! Our business in China has gone from strength to strength since we opened there six years ago.“

A brief summary of the individual business segments – Facts and figures:
With sales totaling 1.1 billion euros, the Thermomix Division once again re-mains the biggest earner in the Vorwerk Group, despite a slight decrease in revenues compared with the previous year (3.6 percent down).

The Kobold Division’s sales also fell slightly to total 757 million euros (4.5 per-cent down).

JAFRA Cosmetics reported total sales of 336 million euros, slightly down on the 363 million euros of the previous year. The decline is chiefly due to the adverse effects of the Mexican peso exchange rate.

Vorwerk flooring generated a sales volume of 49 million euros, a decrease of 16.2 percent in line with the negative market trend.

The akf group reported revenues equal to those of the previous year and upped its new business to 1.3 billion euros.

For the financial year 2019, the Vorwerk Group expects a growth in sales.

ABOUT VORWERK

The Vorwerk & Co. KG family enterprise was founded in 1883. The holding company’s registered office is located in Wuppertal, Germany. At the head of the corporate group are the Managing Partners Reiner Strecker and Frank van Oers. Vorwerk’s core busi-ness encompasses both the production and sale of high-quality household products (Thermomix kitchen appliance, Kobold vacuum cleaner, Twercs tools, Temial Tea Maker, and cosmetics (JAFRA Cosmetics). Vorwerk always seeks direct contact to the customer – be it through direct selling, via its own e-shops or its Vorwerk stores in good inner-city locations. The Vorwerk family also includes the akf bank, Vorwerk flooring and its sister group, HECTAS. Worldwide, there are more than 624,000 people working for Vorwerk, some 611,000 of whom are independent advisors. Vorwerk gen-erated consolidated sales of 2.8 billion euros (2018) and operates in more than 80 countries.

MEDIA CONTACT
Vorwerk & Co. KG
Michael Weber
Head of Corporate Communications
Tel.: +49 202 564-1247
Email: presse(at)vorwerk.de

Publication free of charge – specimen copy requested