Despite fragile supply chains and declining overall markets, premium domestic appliance manufacturer Miele (Gütersloh, Germany; www.miele.com) increased sales by 12.2% to EUR 5.43 bn in the previous business year. Eastern European and Asian countries including China are said to be the main contributors to this growth, but “established” markets such as Australia, the UK, the Netherlands and the US have also contributed. In Germany, Miele generated revenues of EUR 1.47 bn, an increase of 5.6%. Approximately 72% of sales were achieved outside Germany.

In the past business year, Miele produced more appliances than ever before. The number of washing machines and dishwashers, for example, both increased to more than 1 mn units, even though the general conditions for the domestic-appliance business have recently deteriorated considerably, according to a statement from Gütersloh. Especially the pandemic-induced historic boom in the 2022 fiscal year, from which the entire industry had benefited for almost two years, is said to have slowed down considerably. The slump was amplified by the general drop in consumption since the beginning of the war in Ukraine. The supply for semiconductors, on the other hand, returned to normal in 2022, the fourth-generation family-run group reported.

Related: Miele halts supply of household appliances to Russia

In the cooking business unit, with a turnover of more than EUR 1.1 bn and an increase of almost 13%, the group wants to expand production capacities. A first facility for cookers is planned in the US. Production is scheduled to start at the end of 2024, with 150 employees by the end of 2025. Purportedly, the decision on the specific location would be made in the coming months. This would be Miele’s eighth production site outside Germany, out of a total of then 16 plants.

Miele traditionally does not disclose the bottom-line figures. Its two major competitors, Whirlpool (Benton Harbor, Michigan, USA; www.whirlpool.com) and Electrolux (Stockholm; www.electrolux.com), recently reported rather weak results due to consumer restraint, caused by significantly declining sales volumes especially in the fourth quarter.

Related: Miele adopts cost-cutting measures and a new structure

As far as the outlook for the current year with declining overall markets is concerned, the group plans to temporarily reduce production of its washing machines, dryers and hoovers, in some cases by having employees work shorter days.

Nevertheless, management is “cautiously optimistic that business can be kept stable or even increased further despite the existing imponderables”. The price development for materials, energy, and logistics is likely to remain the central challenge on the procurement side.