Sennheiser Group looks back on a successful 2023 fiscal year
10 June 2024
The international specialist in professional audio solutions grows for the third consecutive year
Wedemark, June 10, 2024. The Sennheiser Group achieved revenues of 527.2 million euros with its professional audio solutions in the 2023 fiscal year. For a further year, revenues surpassed the previous year's result with a growth of 12.7 percent. 2023 also saw the independent family-owned company continue to invest sustainably in its future. With these investments, Sennheiser reinforces its ability to pursue a consistent and ambitious growth strategy.
The Sennheiser Group closes the 2023 fiscal year very successfully. Accordingly, Co-CEOs Daniel and Andreas Sennheiser provide a positive overview of the company’s performance: "We are more than satisfied. Overall, we achieved revenues of 527.2 million euros. This has allowed us to grow for the third consecutive year and further expand our strong position in the global audio market. We are particularly proud of this result because, as a family-owned company, we strive for lasting, sustainable growth." The achieved revenue target once again exceeded the previous year's revenue for the Sennheiser Group with a growth of 12.7 percent. Earnings before interest and taxes (EBIT) amounted to 55.4 million euros.
Turnover development of the Sennheiser Group
Revenue Growth in All Regions
The family-owned company was able to grow in all regions worldwide: Particularly, the APAC and EMEA regions achieved strong growth rates. Highest revenues continued to be generated in the EMEA region, which also recorded the largest revenue growth. Revenue here amounted to 240.6 million euros; an increase of 22.2 percent compared to the previous year. APAC reached a revenue of 107.2 million euros, growing by 15.3 percent. This growth indicates that the APAC region is steadily recovering from the pandemic's impact and that the company’s professional audio product business is gaining strength in markets previously dominated by consumer products. The Americas region developed steadily: The market generated a total revenue of 179.4 million euros in 2023, achieving a slight revenue growth of 0.9 percent. The slowed market growth in the US can be primarily attributed to a general decline in consumer confidence and purchasing behavior.
Worldwide, the company’s 21 sales subsidiaries and 55 distribution partners made a significant contribution to the successful business results. The Sennheiser Group's professional audio solutions are now distributed in over 100 countries globally.
Turnover by region
Building the future means investing in the future
“We are driven by the ambition to build the future of the audio industry. To achieve that, we must invest in the future, and we’ve been doing that for generations,” says Andreas Sennheiser, Co-CEO. That’s why the Sennheiser Group once again made significant investments in 2023, totaling around 62 million euros in research & development, strengthening the supply chain, and digitalization. In research and development alone, Sennheiser invested around 46 million euros last year, which is 8.7 percent of revenues, after having invested 42 million in 2022. Thus, investments increased again compared to the previous year. More extensive investments are also planned for 2024. As a central function within the Sennheiser Group, development drives the expansion of the product portfolio, for example, with innovative solutions that combine hardware and software to offer added value for international customers.
The supply chain also saw consistent investment in 2023. “We have always kept large parts of the value chain in our own hands. This independence has repeatedly proven to be a strategic advantage given the ongoing global supply chain issues and volatile geopolitical situation over the past few years. Despite this very dynamic economic environment, we were always able to deliver and thus be a reliable partner for customers. This has set us apart from many other companies,” says Co-CEO Daniel Sennheiser.
At the headquarters in Wedemark, significant investments were made in modern and automated manufacturing processes in 2023. The total investment here amounted to 5.6 million euros. The site specializes in technologies for highly precise, automated processes as well as the manufacturing of high-end products, including the production of microphone capsules in its own cleanroom. Last year, the company also continued to expand the factory in Braşov, Romania, investing around 7.5 million euros; the production areas have tripled since the factory’s opening in 2019. The Romanian factory specializes in manual production as well as the final testing and packaging of products. The Sennheiser manufacturing team consists of 419 employees, with 306 at the main location in Wedemark and 113 in Romania.
Another important investment area for Sennheiser is the digital value chain. With the goal of focusing even more on customers, Sennheiser invested nearly 3 million euros here in 2023. These investments lay the foundation for digital business models and the implementation of an agile service organization. This includes the establishment of a shared service center in Poznań, Poland, which opened in May 2023. The shared service center provides various automated backend processes – from accounting to IT to HR – for the entire global organization and forms an important backbone for the company in its growing business.
Investments in Research & Development
As a global company with a presence around the world, the Sennheiser Group also advanced the promotion of DE&I (Diversity, Equity & Inclusion) as part of its sustainability strategy in 2023; the progress of these actions will be measured using specific metrics in the future. Sennheiser’s recognition as a “top employer”, which the company received for the third consecutive time from employer insights platform kununu, confirmed its employees’ particular appreciation for the company's diversity measures. “The satisfaction of our employees is extremely important to us. Their expertise and passion are the foundation of our success. Together, we are building the future of the audio world,” says Co-CEO Daniel Sennheiser.
Outlook
“2024 will remain a dynamic year, especially due to external factors such as interest rate decisions by major central banks and ongoing geopolitical conflicts. Uncertainty can trigger fears about the future, which, like changes in demand, can impact demand. For us, it is important to respond flexibly to volatile market conditions. And we can do that thanks to our independence,” explain the two Co-CEOs. “With our great team, clear focus on the professional business, and a strong strategy, we are well positioned for the future.”
Here you can find the annual report 2023.
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About the Sennheiser Group
Building the future of audio and creating unique sound experiences for our customers - this is the aspiration that unites the employees of the Sennheiser Group worldwide. The independent family-owned company Sennheiser was founded in 1945. Today, it is managed in the third generation by Dr. Andreas Sennheiser and Daniel Sennheiser and is one of the leading manufacturers in the field of professional audio technology.
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