Stihl reports record sales
The Stihl Group, reporting from Germany today, said it, “finished the challenging fiscal year 2022 with record-breaking revenue of $5.5 billion euros ($6.072 billion U.S. dollars), equating to growth of 8.6% compared to the previous year.”
Michael Traub, chairman of the executive board of Stihl, speaking at the company’s international financial press conference this morning said, “Our sales remained high in fiscal year 2022. However, we recorded a slight decline in demand compared to the high growth in previous years.
“That’s because 2022 was heavily influenced by economic and geopolitical challenges, such as disrupted supply chains, material shortages, war in Ukraine, the energy crisis, and inflation — something we also felt in terms of business performance,” said the CEO.
As an international business, the company reported that it generated 90% of its revenue outside its domestic market of Germany. The rise was attributable to currency effects, inflation-related price adjustments, and stronger demand for higher-price professional products.
The firm said that “excluding currency effects, revenue would have grown by 3.1%. As of Dec. 31, 2022, the Stihl Group employed 20,552 people, an increase of 2.3% year on year.”
Sales growth was slowed by a variety of factors, Stihl said, including weak economic performance in U.S. and western European core markets, declining purchasing power, and a more marked shift in consumer spending to other areas of life – such as travel and eating out – because of eased Covid restrictions.
Of batteries and biofuels
Although the trend toward battery-operated products remained intact, said the Stihl Group, it saw a slight decline in the gasoline-powered segment.
“The shift from gasoline to battery power is in full swing. Stihl is actively shaping this transformation by focusing on dual technological leadership,” said Traub.
“We are consistently and systematically making massive investments in battery technology while continuing to fully support the sustainable and environmentally friendly advancement of our gasoline-powered products.” said the CEO at the morning talk.
Battery-powered products represent the fastest growing market segment said Stihl.
Today the Stihl product range includes more than 80 battery-operated tools for private consumers and professionals, said Traub, “which account for 20% of the Stihl tools sold worldwide.
“By 2027, Stihl plans to increase this share to at least 35%, with a goal of 80% for 2035,” he said.
Aside from battery technology, Stihl reported it is also investing in the advancement of combustion engines, particularly in terms of their sustainability.
To do so, Stihl said it is focusing on biofuels and e-fuels.
“With MotoMix Eco, which the company developed in-house, Stihl has already launched a fuel containing 10% renewable raw materials, such as wood scraps from forestry and non-edible parts of plants,” said the company.
Traub explained the strategy, “We are consciously focusing on dual technological leadership. That’s because we align our actions systematically with the needs of our customers. Battery-powered tools are the future.
“At the same time, there are still many applications and regions of the world that require products powered by combustion engines. For those customers, we are developing visionary and environmentally friendly solutions,” said the CEO.
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This slide shown at the Stihl international press conference indicates, among other things, the record-setting revenue for year-end 2022 of $5.5 Euros, or $6.072 billion dollars. -
Stihl e-fuels will contain 10% renewable raw materials, such as wood scraps from forestry and non-edible parts of plants, said the company.