€ 3.22 bn sales in 2013/14 financial year / ATH in sales and employment / Change at board level completed on plan

The family-owned Miele company has once again met its target of achieving sustainable growth throughout the ups and downs of the economic cycle: The world's leading manufacturer of premium domestic appliances reported turnover of € 3.22 bn in the 2013/14 financial year ending on June 30, 2014. This amounts to a year-on-year increase of € 69 m or 2.2%. Worldwide, the Miele Group now employs a workforce of 17,660. Investments over the period under review amounted to € 188 m.

In a year marked by the largest product and innovation offensive in its history, Miele renewed virtually its entire range of domestic appliances – and was able to more than compensate for the inclement economic conditions which prevailed in key sales markets. Here, a stronger euro, in particular, had a noticeable restraining effect on exports. Consequently, turnover growth taking currency effects into account would have been in excess of 5% or more than twice as high as in euros. Against this backdrop, business was 'quite satisfactory', according to Olaf Bartsch, Miele Group board member responsible for finances and administration. In Germany, Miele sales reached € 978 m, equating to growth of € 23 m, or 2.4%. Germany's share of turnover grew slightly and now stands at 30.6%.

Despite continued political unrest, with respect for example to the instability in the Middle East and the crisis in the Ukraine, the Board of Directors has formulated growth targets for the 2014/15 business year as being in the same order of magnitude as in recent years.

Well positioned for long-term growth

'At this point, Miele is well positioned to achieve further growth with respect to turnover, unit sales and market shares, even under less favourable market conditions', says Dr Markus Miele, Executive Director and Co-Proprietor of the domestic appliance pioneer. In this, Miele is helped along by a corporate strategy based on long-termism with a focus on quality and consumer benefits, organic growth based on the company's own production and investments funded out of Miele's own equity. 'Being independent of the vested interests of third-party money lenders strengthens Miele's position as an independent and unaffiliated German family-owned company', Executive Director and Co-Proprietor Dr. Reinhard Zinkann confirms.

In product terms, Miele is increasingly profiting from the gradual worldwide introduction of the new 6000 (built-in appliances) and W1/T1 (laundry care) generations. The world market launch of the Scout RX1, Miele's first robotic vacuum cleaner, in May 2014 exceeded expectations in many countries, including Germany. IFA 2014 will see the launch of new flagship washing machines and tumble dryers offering further unique selling propositions and superb consumer benefits. At the same time, the company is to present a completely restructured vacuum cleaner range which not only does justice to the new EU energy labelling legislation but also caters for real consumer needs.

Current test winner in key categories

Miele is emphasising its leading role in combining user benefits and ecology: on the one hand by offering mature and intelligent networking solutions, for example those which connect appliances to roof-top PV or solar-thermal installations – and on the other by presenting exclusive features during the reporting period such as integrated automatic dispensing for whites and coloureds which cuts detergent consumption by 30%. A further forte lies in the fact that Miele always guarantees maximum energy efficiency – but without the overly long cycle times which otherwise apply.

'Consumers have every right to associate the name of Miele with excellent consumption values whilst still expecting top marks for the quality of results, user convenience and design', Dr. Eduard Sailer, Director responsible for technical affairs, confirms. The results published by Germany's highly reputable consumer watchdog Stiftung Warentest bear this out: Miele currently has winners in virtually all relevant categories such as washing machines, washer-dryers, heat-pump dryers, vacuum cleaners, ovens, refrigerators and dishwashers. The 'Edition 111' campaign series, which ties in with Miele's 111-year long expertise in the field of laundry care, is turning out to be the most successful Miele campaign of all times, with sales of washing machines and tumble dryers topping the 1 m mark since autumn 2012. On the kitchen appliance and vacuum cleaner fronts, Miele was able to increase its market shares by value in western Europe once again in the first half of 2014, according to the market researchers GfK.

According to the company, further milestones of success are its clear commitment to Miele as the only brand in its portfolio combined with a global positioning in the premium segment and a focus on partnering with specialist dealers able to provide expert advice. 'Maintaining and nurturing these ties whilst at the same time opening up new sales channels such as the Internet with a sense of proportion is a challenge for any premium brand', says Dr Heiner Olbrich, Director for Marketing and Sales, due to resign for personal reasons on September 30, 2014. Given its reputation and credibility amongst sales partners and consumers alike, Miele is well equipped to rise to this challenge. Olbrich's designated successor, on board since August 1, is Dr Axel Kniehl, previously Vice President of the Whirlpool Corporation, responsible for Northern and Continental Europe and at the same time CEO of Bauknecht.

Strong growth in US, China and Russia

Outside Germany, turnover growth of 1.9% has been achieved, whereby Miele has reported in part good double-digit growth in the strategically important markets in the USA, China and Russia, albeit for the most part negated by unfavourable exchange rates. Miele saw above-average growth in Australia, its third-largest sales market outside Germany after the USA and Switzerland, although this was transformed into a double-digit drop after conversion into euros. On a more positive note, it is worth mentioning that the debt crisis in the worst-hit countries in southern Europe did not worsen during the period under review. Around the world, Miele is still represented in 47 countries by its own sales subsidiaries and in a further 50 markets through importers.

Despite a worldwide decline in the propensity to invest, Miele's Professional division reported above-average growth of 3.9% and now contributes € 418 m, or 13%, towards total company turnover. In this case, new dishwashers promising shorter cycle times, reduced consumption and particularly hygienic results provided new impetus. The same applies to attractive and well-endowed campaign models to mark 90 years of involvement in the commercial laundry field and the full-service philosophy in the area of medical technology (System4Med and System4Dent). A large proportion of the growth in Miele Professional came from a traditionally strong service division, with around 340 Miele service engineers in Germany alone. Services range from commissioning and machine validation and repair work in the event of faults through to comprehensive service and maintenance contracts. The number of active contracts grew during the period under review by around 20%.

Largest workforce ever in Germany and worldwide

As per June 30, 2014, Miele employed a staff of 17,660 around the globe. This corresponds to an increase in the size of the workforce of 409 or 2.4%. In Germany, 10,411 employees are on the Miele payroll (up 0.3%).
At the Miele Group's German locations there are currently 465 young people in one of 33 commercial or technical apprenticeship professions. Of these, approximately 130 are engaged in one of 11 dual courses of studies leading to professional qualifications as well as a bachelor's degree in subjects such as mechanical, electrical and industrial engineering and business administration.

Miele offers post-graduates with a bachelor's or master's degree an on-the-job trainee programme in preparation for a career in middle or top management. This scheme celebrated its 25th anniversary during the reporting period. Of the 121 past trainees, 73 are still in employment with the company and 35 are in managerial positions. A further entry option is afforded by the Master@Miele programme which is aimed at supporting young bachelor graduates in technical professions in studying for a master's degree by offering for example flexible working hours and an additional further education curriculum.

During the past business year, the Miele Group invested to the tune of € 188 m. This is some € 25 m, or 12%, less than in the previous year which was characterised by the biggest product and innovation offensive in the history of the company, as reflected in an all-time investment high. The focus during the year under review was the modernisation of production plant and equipment at several production facilities, new office premises and the extension of the central high-bay transshipment warehouse at the company's headquarters in Gütersloh. Work on increasing the capacity of logistics at Miele Gütersloh will continue to be a focus of investment in the now current 2014/15 business year.

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