Freudenberg shows strong earnings for fiscal 2024

Weinheim, Germany – Freudenberg showed strong earnings growth during its recently concluded fiscal year. Sales and investments in research and development both continued to grow as well.

“The fiscal year 2024 was a year of stable growth in a challenging market environment. Despite continuing weakness in demand, especially in the auto industry and machine-building, we were able to increase our earnings and our sales. Due to this business success, we are able to invest large sums in our future capabilities – in research and development, facilities and technologies. Freudenberg thinks and takes action for the long term,” said Dr. Mohsen Sohi, CEO of the Freudenberg Group, as the company’s financial results were published in Weinheim.

“This is clear from a look at the last 12 years when I held responsibility for the business as CEO,” Sohi said. “Over this period, the sales and operating profit doubled at Freudenberg, achieving an average annual growth rate of 6.6 and 9.7 percent respectively. Our investments in research and development have grown even more vigorously – by 10.8 percent. They have tripled over that period,” said Sohi, who is retiring at the end of June and passing the baton to Claus Möhlenkamp.

In fiscal year 2024, Freudenberg had sales of €11,947.5 million, up 0.4 percent compared to the previous year (€11,902.8 million). Exchange-rate effects of €76.9 million, however, had a negative impact on sales. They were mainly shaped by the exchange-rate trend for the Japanese yen and the Brazilian real.

Showing a growth rate of about 4.7 percent, the operating profit of €1,132.4 million was significantly greater than the €1,081.6 million from the previous year. The key success factors have been the company’s innovative product lines as well as its structured expansion into attractive markets and strategic business fields such as medical technology and the energy economy.

The profit margin improved to 9.5 percent (previous year: 9.1 percent).

Cash flow from ongoing business activities reached €1,288.9 million. This represented a reduction of €114.8 million compared to the previous year.

For this reporting year, the highly stable equity ratio has again increased slightly and now stands at 56.8 percent (previous year: 56.1 percent).

As in previous years, the ratings agency Moodyʼs Deutschland GmbH, Frankfurt am Main, has given Freudenberg an “A3” rating, with a stable outlook. The company has thus once again earned the agency’s excellent “Single-A Rating.” That confirms Freudenberg’s high level of creditworthiness.