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Grundfos bounces back after COVID-19 revenue slump

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Strong second half of the year helps Danish firm get close to 2019 performance

Grundfos has revealed that it returned to “stronger sales traction” in the second half of 2020 after having been significantly impacted by COVID-19 in the first six months of the year.

Overall revenue from sales from the year was only 1.0% below 2019 with the return on sales reaching 9.9% after the firm continued with its restructuring programme. Adjusted for these non-performance items Grundfos’ return on sales reached 11.1%, which is the second highest in the company’s history, added the company.

“In a challenging year, Grundfos maintained a high customer satisfaction score and continued to deliver on its sustainability ambitions,” said the company in its financial statement.

With full year net turnover reaching $4.2 billion, Poul Due Jensen, CEO and Group President, Grundfos described the performance as a “result to be proud of.”

He added: “The COVID-19 pandemic made 2020 a challenging year for everyone and our main priority has been ensuring a safe working environment and to continue to serve our customers in the best possible way. We are therefore very satisfied with our result. Our financial strength allows us to invest further in our strategic ambitions and in innovation to fulfill our purpose of solving the world?s water and climate challenges and improve quality of life for people.”

An annual employee motivation survey, conducted in September, also showed an increase in employee motivation to a record high level.

“Grundfos is its people, and I am proud to see that we despite a global pandemic, deliver very strong financial results, an increase in our employees’ motivation and our customers’ satisfaction score. We also continued to deliver positive climate impact by significantly reducing our own energy consumption and enabling our customers to reduce their energy use as well. Furthermore, we have successfully gone live with our new customer-centric organization. Grundfos is in really good shape and ready for the future,” adds Poul Due Jensen.

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