Media / Press Releases
Wuppertal, 13 June 2006 - This past year, Vorwerk became even more international. The Wuppertal-based family company Vorwerk & Co. KG was able to make further strides with its policies of growth and diversification. Today, almost 500,000 people work for Vorwerk all over the world, as employees, full-time sales advisers, part-time representatives or cosmetics consultants.
“With 5% growth and a business volume of 2.181 billion euros, Vorwerk has continued its series of successful years”, reported Managing Partner of Vorwerk & Co. KG, Achim Schwanitz, at today’s financial press conference in Wuppertal, summing up the 2005 fiscal year.
Good conditions for growth outside Germany helped the ratio of business volume generated abroad to climb to 56%. In the organisation’s core direct sales business, the increase was even as high as 75%.
The business fields that showed the most growth were Jafra Cosmetics, Thermomix and the akf bank. In terms of countries, Italy, Spain, Mexico, China, France and the Czech Republic were the main drivers.
The organisation’s financial basis is as sound as ever - despite high investments made in the past two years in development and the introduction of new products as well as the purchase of new companies. Partners’ equity totalled 44% in 2005, already back up to “Vorwerk level” following the acquisition of the new company, Jafra Cosmetics. Liquid resources increased further to 710 million euros.
In the opinion of the Executive Board, the company’s continued growth can be attributed to an unaltered product policy. Vorwerk does not believe in lowering prices, but relies instead on the exceptionally high quality of its products.
The development of Jafra Cosmetics with respect to both growth and income exceeded the expectations associated with its purchase in 2004. Jafra turnover in 2005 was 399 million euros (approx. 500 million US dollars).
With its new “cosmetics” product range, Vorwerk has added to its core competence in direct sales a field that has been experiencing steady growth worldwide for several years. This fulfill’s the company’s goal of further driving its international orientation, as it is now strongly represented not only in Europe and Asia, but on the American market as well.
Jafra not only offers first-class brand-name products (Jafra perfumes are No. 5 in worldwide sales), but also gives women a chance to be self-employed and to earn their own income without making a large invetment. Currently, Jafra is preparing to enter the Russian and Indonesian markets.
The Thermomix Division saw an increase of 3% in 2005, with notable success in Spain and Italy, Germany, France and Portugal. Vorwerk is at present testing possibilities for more broad-scale international marketing of this unique kitchen appliance, the only one of its kind anywhere in the world. The focus here will be on Asia, starting with Taiwan, and Central America, in particular Mexico.
The Kobold Division has continued to achieve success abroad. Sales in China rose by 15%. 1,300 sales partners are now working for the Chinese organisation.
While Vorwerk realised health growth in Italy, the largest Kobold sales country, as well as in Spain and the Czech Republic, a decline was in sales was experienced for the first time in many years in the Kobold business in Germany. Here, the advisers’ sales figures lagged behind expectations somewhat. with a 5% decrease in turnover. In contrast, the Fitted Kitchens business, which is closely tied to Kobold sales in Germany, remained stable.
The new division Feelina Ironing Systems is growing according to plan. The launch in Spain is proceeding rapidly.
Lux Asia Pacific did not quite meet the targets set in terms of euros. Exchange rates fluctuations played a major role here. In future, the business will concentrate on the two main product lines: vacuum cleaners and water filters. New vacuum cleaner products will soon be introduced, and the Vorwerk plant in Shanghai will take over production for Lux Asia Pacific.
Cosmetics production is located in Mexico, with research and development based at Jafra headquarters in the USA. The production of Vorwerk carpets takes place in Hameln. Engineering activities for household appliances, including research, development and production, were gathered together to form a separate division in 2005. The main site is Wuppertal. Other production locations are Cloyes (France), Arcore (Italy), Shanghai (China) and Manila (Philippines).
The Carpets Division experienced a healthy recovery. Following restructuring and the successful launch of a new collection, sales were up by 5 %. The business continues to realise substantial profits.
A study conducted by the German Allergy and Asthma Association provided scientific proof that carpeting reduce particulate matter in rooms better than hard flooring. A paradigm change is taking place here, because many of the standard recommendations must now be reformulated. The carpet works in Hameln are the only organisation to date to receive the seal of approval from the Allergy and Asthma Association following an inspection.
The Hectas Division was able this past year to overcome a weaker period in Germany. The previous year’s turnover was not quite attained. Foreign sales developed according to plan, with a 50% share in overall turnover, notable here were the Netherlands and the smaller-scale business in Eastern Europe.
The akf bank was able to expand its leasing and credit activities considerably in 2005. New business was up by 6%, particularly in vehicle financing and full-service leasing for vehicle fleets. Since the 4th quarter of 2005, new business grown in the double-digit range. Initial steps will be taken this year toward internationalizing the leasing business, with Spain as the first market.
Vorwerk has been certified by the non-profit Hertie Foundation for its responsible human resources policies and received honours in the competitions for “Top Job” and “Top Employer”.
After the successful first five months of 2006, Vorwerk expects this year to once again achieve growth on the order of 5%.
Another record year for the Vorwerk family enterprise - ongoing internationalisation - successful entry into cosmetics
Wuppertal, 13 June 2006 - This past year, Vorwerk became even more international. The Wuppertal-based family company Vorwerk & Co. KG was able to make further strides with its policies of growth and diversification. Today, almost 500,000 people work for Vorwerk all over the world, as employees, full-time sales advisers, part-time representatives or cosmetics consultants.
“With 5% growth and a business volume of 2.181 billion euros, Vorwerk has continued its series of successful years”, reported Managing Partner of Vorwerk & Co. KG, Achim Schwanitz, at today’s financial press conference in Wuppertal, summing up the 2005 fiscal year.
Good conditions for growth outside Germany helped the ratio of business volume generated abroad to climb to 56%. In the organisation’s core direct sales business, the increase was even as high as 75%.
The business fields that showed the most growth were Jafra Cosmetics, Thermomix and the akf bank. In terms of countries, Italy, Spain, Mexico, China, France and the Czech Republic were the main drivers.
The organisation’s financial basis is as sound as ever - despite high investments made in the past two years in development and the introduction of new products as well as the purchase of new companies. Partners’ equity totalled 44% in 2005, already back up to “Vorwerk level” following the acquisition of the new company, Jafra Cosmetics. Liquid resources increased further to 710 million euros.
In the opinion of the Executive Board, the company’s continued growth can be attributed to an unaltered product policy. Vorwerk does not believe in lowering prices, but relies instead on the exceptionally high quality of its products.
The development of Jafra Cosmetics with respect to both growth and income exceeded the expectations associated with its purchase in 2004. Jafra turnover in 2005 was 399 million euros (approx. 500 million US dollars).
With its new “cosmetics” product range, Vorwerk has added to its core competence in direct sales a field that has been experiencing steady growth worldwide for several years. This fulfill’s the company’s goal of further driving its international orientation, as it is now strongly represented not only in Europe and Asia, but on the American market as well.
Jafra not only offers first-class brand-name products (Jafra perfumes are No. 5 in worldwide sales), but also gives women a chance to be self-employed and to earn their own income without making a large invetment. Currently, Jafra is preparing to enter the Russian and Indonesian markets.
The Thermomix Division saw an increase of 3% in 2005, with notable success in Spain and Italy, Germany, France and Portugal. Vorwerk is at present testing possibilities for more broad-scale international marketing of this unique kitchen appliance, the only one of its kind anywhere in the world. The focus here will be on Asia, starting with Taiwan, and Central America, in particular Mexico.
The Kobold Division has continued to achieve success abroad. Sales in China rose by 15%. 1,300 sales partners are now working for the Chinese organisation.
While Vorwerk realised health growth in Italy, the largest Kobold sales country, as well as in Spain and the Czech Republic, a decline was in sales was experienced for the first time in many years in the Kobold business in Germany. Here, the advisers’ sales figures lagged behind expectations somewhat. with a 5% decrease in turnover. In contrast, the Fitted Kitchens business, which is closely tied to Kobold sales in Germany, remained stable.
The new division Feelina Ironing Systems is growing according to plan. The launch in Spain is proceeding rapidly.
Lux Asia Pacific did not quite meet the targets set in terms of euros. Exchange rates fluctuations played a major role here. In future, the business will concentrate on the two main product lines: vacuum cleaners and water filters. New vacuum cleaner products will soon be introduced, and the Vorwerk plant in Shanghai will take over production for Lux Asia Pacific.
Cosmetics production is located in Mexico, with research and development based at Jafra headquarters in the USA. The production of Vorwerk carpets takes place in Hameln. Engineering activities for household appliances, including research, development and production, were gathered together to form a separate division in 2005. The main site is Wuppertal. Other production locations are Cloyes (France), Arcore (Italy), Shanghai (China) and Manila (Philippines).
The Carpets Division experienced a healthy recovery. Following restructuring and the successful launch of a new collection, sales were up by 5 %. The business continues to realise substantial profits.
A study conducted by the German Allergy and Asthma Association provided scientific proof that carpeting reduce particulate matter in rooms better than hard flooring. A paradigm change is taking place here, because many of the standard recommendations must now be reformulated. The carpet works in Hameln are the only organisation to date to receive the seal of approval from the Allergy and Asthma Association following an inspection.
The Hectas Division was able this past year to overcome a weaker period in Germany. The previous year’s turnover was not quite attained. Foreign sales developed according to plan, with a 50% share in overall turnover, notable here were the Netherlands and the smaller-scale business in Eastern Europe.
The akf bank was able to expand its leasing and credit activities considerably in 2005. New business was up by 6%, particularly in vehicle financing and full-service leasing for vehicle fleets. Since the 4th quarter of 2005, new business grown in the double-digit range. Initial steps will be taken this year toward internationalizing the leasing business, with Spain as the first market.
Vorwerk has been certified by the non-profit Hertie Foundation for its responsible human resources policies and received honours in the competitions for “Top Job” and “Top Employer”.
After the successful first five months of 2006, Vorwerk expects this year to once again achieve growth on the order of 5%.
