The Bosch Group met its targets, despite the challenges of the financial year 2023: according to preliminary figures, the technology and services provider generated sales of 91.6 billion euros and thus recorded an increase of 8% after adjusting for the effects of the exchange rate (nominal increase of 4%), announces the Stuttgart-based group.
EBIT margin from operations reached 5%, a slight improvement on the previous year (4.3%), thus meeting expectations. “For Bosch, the year 2023 was more difficult than anticipated. Through a supreme effort, we were able to increase our sales and improve our margins. We have made progress despite the difficulties encountered,” said Dr. Stefan Hartung, Chairman of the Board of Directors of Robert Bosch GmbH, on the occasion of the presentation of the company’s preliminary turnover figures. “Given the difficult conditions, this is an impressive achievement by our employees. The coming years will require more collective efforts”.
Transformation in the mobility industry: standardization to promote electromobility
Bosch is responding to the transformation of the automotive industry with the largest realignment of its core business in the company’s history: the integrated business sector for Mobility was launched at the beginning of 2024. One of its novelties is horizontal responsibility for three areas of future importance: software, semiconductors and vehicle computers. As Bosch moves into the mobility of the future, it plans to improve how it leverages emerging and established technologies to maximize its business opportunities.
For example, there has been an increase in demand for new redundant braking systems that support automated and electrified driving in particular. Hartung reports that Bosch is aiming for 10% annual growth until 2030. “Overall, we are growing twice as fast as the competition with our brake systems. We are also maintaining our sales in ESP, although the market volume here is declining.” In terms of electromobility, Hartung believes there is still work to be done, such as addressing the lack of charging stations and affordable electric vehicles in Europe. “China managed to increase its car exports by 60% last year, an achievement that should give us food for thought,” he said. “We know that our Chinese customers prefer standardization in electric propulsion solutions – this generates economies of scale that we in Europe cannot afford to miss.”
Business evolution in 2023: strong growth in the Mobility and Technology for construction and energy business sectors
In 2023, the sales development in Bosch’s business sectors presented a mixed picture. With 56.3 billion euros in 2023, the Mobility sector recorded the highest sales. It achieved growth of 7% or 11% adjusted for the effects of the exchange rate. “Our products are in demand, both in traditional and new fields of activity. This motivates us to develop this sector, a task that will continue to require a lot of effort from us,” said Dr. Markus Forschner, Board Member and CFO of Robert Bosch GmbH. The Industrial Technology activity sector recorded sales of 7.5 billion euros. This figure is 8% higher than the previous year due to the acquisition of HydraForce; adjusted for exchange rate effects, this represents an increase of 10%. In the Consumer Goods business sector, sales amounted to 19.9 billion euros. “Strong consumer reluctance has had a significant impact on our power tools and home appliance businesses,” said Forschner. At 7%, sales were down from the previous year; adjusted for exchange rate effects, this was a slight decrease of 1 percent. The Building and Energy Technology business sector saw strong sales growth of 9% to €7.6 billion. After adjusting for the effects of the exchange rate, this increase amounts to 11%. “Here we benefited not only from the high demand for energy-efficient and renewable heating technology, but also from the expansion of our service business within the Bosch Global Service Solutions division,” said Forschner.
