Danfoss continues its transformation driven by the shift in energy systems to renewable energy and the need for significantly higher energy productivity in machines and infrastructure. With bold investments, Danfoss is focused on long-term value creation and has never seen better opportunities.
Danfoss’ very strong 2022 results demonstrate the huge growth potential in products and solutions that contribute to meeting global and regional climate goals.
Sales grew 36% compared to 2021. Organic growth was 15% with EBITA margin reaching 11.9% in 2022. This is combined with a strong free operating cash flow before M&A of EUR 465 million, an increase of 16% compared to 2021. After continued high levels of strategic investments in innovation, production capacity, digital transformation, and regional growth initiatives, EBITA increased 26% to EUR 1,224m compared to 2021. Earnings were affected by the exit from Russia and the creation of Semikron Danfoss and driven by the higher topline and continued traction in managing sourcing, factory performance, and pricing.
“Danfoss is better positioned for growth across all regions than we have ever been. Our sales are almost distributed evenly across the Americas, Europe, and Asia with significant opportunities in all regions. As an example, we increased our sales significantly again this year in North America. With our record levels of investments in production capacity, regionalization, and digital solutions, we are targeting to further improve the service to our customers globally,” says Kim Fausing, President & CEO of Danfoss.
Danfoss’ Core & Clear 2025 strategy, a green growth strategy, was launched in April 2022 with the aim of ensuring further investments in strengthening Danfoss’ three business segments and sustaining strong application know-how, sustainable innovation, and leading positions.
“By increasing innovation spend by 39%, we are again demonstrating our commitment to offering best-in-class technology and solutions. We continue to invest in technologies for sustainable datacenters, the fast-growing market for heat pumps and energy efficiency solutions, autonomous vehicles, the electrification of machines and marine vessels, and mobile machinery as well as Power-to-X and battery energy-storage systems. Finally, it was a true highlight to launch Semikron Danfoss in August and thereby establish a leading position in power electronics and electrification,” says Kim Fausing.
Danfoss is determined to decouple its carbon impact from its own business growth with technologies for energy efficiency, sector integration, linking various energy carriers, and electrification. Adjusted for acquisitions, Danfoss delivered a 7% decrease in scope 1 and 2 emissions in 2022 while growing 15% organically. At the same time, Danfoss is taking critical steps towards promoting Diversity & Inclusion through global employee resource groups.
Key figures for 2022
View the full Annual Report 2022 here.