Vorwerk & Co. KG recently announced the figures for the fiscal year 2016. At a press conference in Düsseldorf, Vorwerk Group Managing Partners Reiner Strecker, Rainer Genes and Frank van Oers revealed that total revenues for the past year were up 4.1 percent to 3.1 billion euros (not including VAT).
In addition, Vorwerk Group generated an increase in business volume, which also includes the new business of the akf group, which totaled 1.2 billion euros. With a volume of 3.8 billion, Vorwerk achieved a year-on-year increase of 4.7 percent. Taken together, all of its German activities generated 7.1 growth in sales to 1.1 billion euros.
JAFRA Cosmetics, the direct selling division of Vorwerk, was down 7 percent on its level for the previous year and generated sales of 369 million euros. The decline is due chiefly to currency differences, since the Mexican subsidiary, in particular, JAFRA’s largest, actually generated a slight increase in sales in the local currency.
Two of Vorwerk’s other divisions saw increases for the year: The Thermomix Division succeeded in boosting sales by 11 percent to almost 1.3 billion euros to remain the top-performing division within the Vorwerk Group. The akf group reported sales are up 11.9 percent to 431 million euros and new business now stands at 1.2 billion euros.
Two other divisions saw decreases for the year. The Kobold Division suffered a slight fall in sales of 3.9 percent with sales totaling 836 million euros. During its reorganization, Vorwerk Flooring invested in its production facilities and product portfolio. Sales were down while the reorganization was in progress, so that at the end of the reporting year the division reported a decrease in sales of 8.7 percent to a total of some 70 million euros.
The managing partners noted that the spotlight for the coming year was very much on digitization, which Vorwerk is approaching at many different levels. “Some of our present products already feature a digital interface, and in the future, all of our products will,” the Managing Partners stated. “The main question here is: What does a product need to have to be a market success and to convince customers to buy? Or to put it another way: What makes our life better? Each new product idea will be developed with these questions in mind.”
The Vorwerk & Co. KG family enterprise was founded in 1883. Vorwerk’s core business encompasses both the production and sale of high-quality household products (Thermomix kitchen appliance, Kobold vacuum cleaner, Twercs tools, Lux Asia Pacific products) and cosmetics (JAFRA Cosmetics).
Vorwerk was No. 4 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $4.20 billion for 2016.