Good results for Franke Group

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The Franke Group recorded an increase in sales and significantly improved profitability in 2016, The good trend was driven mainly by strong organic growth in the double-digit percentage range and by sales rises practically in all of the divisions and on group-wide operating efficiency improvements. Total sales grew by 8.5% to CHF 2.0 billion, while organic growth totaled 10.6%
Adjusted operating result (EBIT) before restructuring increased by 40.6% to CHF 156.8 million; EBIT margin totaled 7.7% (prior year 5.9%). Among the main operations that contributed to reach the good results, we can mention Franke strategic investment in a state-of-the-art production plant for synthetic sinks in Slovakia and a European central warehouse in Germany and the strategic partnership through participation in Duravit AG.  «The pleasing annual result shows that our strategy is taking effect – said Alexander Zschokke, CEO of the Franke Group.- In 2016, we invested further in improving productivity, e.g. in the upgrading and harmonizing of our production capacities. What’s more, we made significant investments in all divisions in the development of new products and services. With our innovative strength and customer proximity, we were able to respond quickly and flexibly to numerous new business opportunities. Three of our four divisions have achieved growth on their own efforts; Franke Kitchen Systems gained additional market shares in the strategically important product segment of hoods, thereby enabling it to take a great step forward towards its goal of becoming “the market leader in ventilation technology for domestic kitchens.” We have also gained additional market shares in the tap area, which is making the Franke Group a strong market player for clean water and clean air in domestic kitchens.»