"In view of the challenging situation of the German economy and the low global growth momentum, we are very satisfied with the positive development of our company," comments CEO Dr. Heiner Lang on the company's balance sheet for 2023. Despite a significant economic downturn and the associated decline in incoming orders, sales increased further. Wago covers a broad range of market segments and applications with products, systems and solutions in the field of electrical connection technology and automation. "The energy and mobility transition in particular, as well as investments in factories and capacity expansions, had a positive effect on the Wago Group's total sales in 2023," says CFO Jürgen Koopsingraven.

The German market's share of sales rose to 29.3% - Germany therefore remains the company's largest market. A further 42.9 % of sales were attributable to the rest of the European market and 27.8 % to the remaining global markets. As in previous years, the electrical connection technology business accounted for the largest share of sales and continues to grow. The solutions business recorded the strongest relative growth.

Jürgen Koopsingraven, CFO of Wago

© Wago

In addition to the use of financial resources in training facilities, 157 million euros were invested last year, the majority of which was in the expansion of production and logistics facilities. 60% of the investments in 2023 were made in the plants at the Minden headquarters and in Thuringia, with EUR 22 million alone going towards the construction of the new 'Wave24' logistics center in Sondershausen, Thuringia, which is due to open at the end of this year.

The company's growth strategy also includes expanding its presence in Europe and investing in international markets. For example, the company is expanding production capacity at its Swiss site in Domdidier, where a new plastic injection molding plant will be built by the end of 2025. The main focus here is on energy-efficient and resource-saving production. The company is also investing in the new headquarters of Wago UK & Ireland in Houlton Rugby. The construction process should be completed by the end of 2024. Investments are also being made in the expansion of production and in manufacturing equipment at the plants in Poland, India, China and Mexico.

Outlook for the coming financial year

In February, the German Electrical and Electronic Manufacturers' Association (ZVEI) forecast a dip in growth for the current year despite a gradual recovery and expects a real decline in production of 2% for the electrical and digital industry. The development of the building market is also viewed very cautiously due to the high level of interest rates. The market development for 2024 can therefore not be reliably forecast, says CEO Dr. Heiner Lang.