Revenue And Profits Rise At LIXIL

Highlights of today’s announcement of the financial results for the fiscal year 2022 (1st April 21- 31st March 22) from LIXIL, a manufacturer of pioneering water technologies and housing products whose brand portfolio also includes GROHE.

• Consolidated revenue for the fiscal year increased 4% year over year to ¥1,428.6 billion (EUR 11.34 billion) driven by continued strong performance of LIXIL’s Americas and European business.

• Revenue of LIXIL Water Technology’s (LWT) international business, where also the GROHE brand is part of, increased by 19%, driven by the strong performance of the Americas and Europe.
  
  
• Sales in EMEA markets increased 15% year over year, rising above its pre-COVID level. Sales grew in all product categories and sales channels with wholesale channels and e-commerce continuing to perform strongly.
  
  
• Core earnings of the international business increased by 39% due to robust sales in the Americas and Europe, as well as price optimization and increased cost efficiency, including SG&A expenses.
  
  
• As part of its strategy to meet specific needs of customers and each end-user segment, LIXIL’s GROHE brand launched GROHE Professional in EMENA, targeting professional installers and their end-user client. The new sub-brand follows the successful launch of another sub-brand GROHE QuickFix that responds to growing do-it-yourself (DIY) demand. Designed to make plumbers’ everyday work as easy and efficient as possible amid labor shortages, GROHE Professional provides them with a dedicated product portfolio and the GROHE+ program, a comprehensive service package that includes training. GROHE has also expanded its GIVE program (GROHE Installer Vocational Training and Education) to nurture the next generation of plumbers, supporting plumbing schools across EMENA and helping the students gain work experience or placements after graduation. Through this holistic approach, GROHE looks to strengthen brand loyalty and expand cross-selling and upselling opportunities, as well as contribute to the sustainable growth of the industry.

Jonas Brennwald, Leader LIXIL EMENA, commented:

“I’m proud to see that even in a challenging macroeconomic environment, the EMENA region is going from strength to strength. We are confident that the GROHE brand with its differentiated go-to-market strategy will continue to contribute to the success of LIXIL.”

Kinya Seto, CEO, LIXIL:

“We are pleased to deliver year-on-year revenue and profit growth and have significantly improved our financial position despite the extremely challenging operational environment in the fourth quarter. Our US and European business achieved double-digit growth while our APAC business is continuing to recover from the impact of COVID-19. However, soaring raw material costs, distribution costs, and response costs to supply chain disruptions weighed on our bottom line in the fourth quarter. To combat these challenges, we are taking measures including timely price increases, shifting to high-value added products, and switching to alternative materials. We are also building a more agile and resilient supply chain and production system to deliver for our customers. At the same time, we are accelerating development of products that reduce environmental impact and contribute to a circular economy to help protect the planet and capture emerging business opportunities.

In the last fiscal year, we made steady progress against our mid-term financial targets. This reflects the progress we have made in our strategic initiatives set out in our management direction, as well as our increased agility and resilience. While an uncertain operating environment is likely to persist, I am confident we will be able to achieve sustainable growth for the long term. With our commitment to our corporate responsibility goals, we will continue to enhance the value we create for our stakeholders and ultimately deliver on our corporate purpose of making better homes a reality for everyone, everywhere.”

Source : LIXIL

Image : GROHE Blue Professional C-spout, Chrome 

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