In 2023, Danfoss, a manufacturer of valves and actuators, invested in expanding its range of competitive and innovative solutions. Despite a slower growth environment in 2023, Danfoss recorded a 10% increase in earnings (EBITA).

In 2023, scope 1 and 2 emissions (before acquisitions) decreased by 18%, decoupled from organic sales growth of 2%.

“Positive development of Danfoss continued”

Sales in 2023 up 7% in local currency and 4% reported to EUR 10.7 billion. Operating profits (EBITA) up 10% to EUR 1,345 million, with a margin of 12.6%, up from 11.9%. EBITA excluding integration cost and other operating income and expenses, reached 13.7%.

Positive growth in North America and Europe. Asia Pacific sales growth was negative, mainly driven by the economic slowdown in China. India continued to deliver a strong growth performance.

“With our 2023 results, the positive development of Danfoss continued with bold investments in our green growth strategy, Core & Clear 2025. Despite market headwinds in the second half of the year, Danfoss reported financial results within the range of guidance”, says Kim Fausing, President & CEO of Danfoss.

Financial outlook 2024

Danfoss has a continued ambition to expand or maintain market share. Sales are expected to be in the range of EUR 10.0-11.5 billion for the full year. The EBITA margin is expected to be in the range of 11.8-13.3%, following the continued integration of already-acquired businesses as well as investments in the development of new products and solutions.

The expected growth and profitability performance is dependent on the development of global supply chain stability, the geopolitical environment, and inflation, as well as general global growth rates.