Old Lyme, CT (July 2, 2014)—Sennheiser Group has published its results for the 2013 fiscal year, showing revenue remained constant, while return on sales was a middling single-digit figure. Profit for last year was 14.3 million euros, a significant decline as against the two previous years.
2013 was another year in which the company invested substantially in research and development as well as in expanding its worldwide sales network, and growing its staff by 9.1 percent to a total of 2,542.
Exchange rate fluctuations also proved a burden in the past year. “In 2013, the euro appreciated by more than three percent against the dollar year on year,” says CEO Andreas Sennheiser. “We still raised our export ratio to more than 85 percent, which is to say the world values quality and design made by Sennheiser, and is accepted that these come at a price.”
Sennheiser did see stable growth in all regions, being a market leader in Europe for 2013 and continuing to grow in the Asia-Pacific region. Sennheiser Group sales grew one percent to 590.5 million euros in 2013, which is equivalent to an exchange-rated adjusted figure of 606.9 or a growth rate of 3.9 percent. Asia-Pacific recorded the strongest advance as revenues increased by 6.6 percent, topping 100 million for the first time (100.3, 2013: 95.0). North and South America remained essentially unchanged at 147.1 million (2013: 146.5), while Europe confirmed its status as the group’s largest region by sales with constant revenues of 342.1 (2013: 342.9) million euros. Sennheiser is responding to expanding business in Asia-Pacific as reported here and is investing in its sales network. In 2013, this included the opening of sales offices in Australia and New Zealand.
A breakdown of sales figures by business divisions shows a solid increase in Consumer Electronics, where sales grew more than four percent to 300.5 million euros. Consumer products accounted for more than half of Sennheiser Group’s revenue in 2013. The Integrated Systems Division reported substantial growth of two percent to a total of 92.7 million euros, while the Professional Systems Division contributed 197.2 million euros or 33 percent to the Group’s total revenues.
Sennheiser is also expanding its research and development activities. Expenditures in this area amounted to 40.6 million euros, up by 2.1 million, while headcount in R&D rose by almost 12 percent to 323.
This year, Sennheiser will be inaugurating its Innovation Campus, an innovation and development center at the company’s headquarters in Wedemark in northern Germany.
“The Innovation Campus embodies our commitment to our longterm-oriented strategy based on sustainable growth and independence,” says Andreas Sennheiser, CEO, “and of course, this is also a commitment to this location and its focus on innovation with the customer in mind.”
Other focuses for the upcoming year at Sennheiser include sustainability, as the company has joined the Phoneblok alliance, a group committed to developing a modular smartphone with components that can be individually interchanged. Sennheiser is also focusing on streaming technology, with the launch of a new app that provides acoustic support and audio descriptions in real time through the user’s smartphone.
Sennheiser has also founded a new company dedicated to developing this and other innovative streaming solutions: Sennheiser Streaming Technologies (SST).