Freudenberg Group Reports Strong 2024 Performance

The Freudenberg Group has reported an increase in operating profit by 4.7 percent to €1.13 billion for the financial year 2024, while sales grew slightly by 0.4 percent to €11.95 billion despite negative currency effects of €76.9 million.

The company's profit margin improved to 9.5 percent from 9.1 percent in the previous year, with an equity ratio standing at 56.8 percent, up from 56.1 percent. Cash flow from ongoing business activities was €1,288.9 million, representing a decrease of €114.8 million compared to 2023.

In India, Freudenberg reported sales of INR 4,015 crore, an increase from INR 3,803 crore in the previous year. The company maintains 11 companies across India with approximately 3,678 employees and recently inaugurated a new production facility in Morinda for its Vibracoustic Business Group and joint venture with Freudenberg-NOK India.

"The fiscal year 2024 was a year of stable growth in a challenging market environment," said Dr. Mohsen Sohi, CEO of the Freudenberg Group, who will be retiring at the end of June and handing over leadership to Claus Möhlenkamp. "Despite continuing weakness in demand, especially in the auto industry and machine-building, we were able to increase our earnings and our sales."

G. Sivasailam, Director & CEO of Freudenberg Regional Corporate Center India and Managing Director of Freudenberg Performance Materials India, emphasized the company's commitment to innovation and customer-focused solutions in the region.

The company has maintained its focus on sustainability, reducing relative CO₂ emissions by 45 percent per million euros in sales since 2020, bringing them down to 47.5 tonnes per million euros. This represents an absolute reduction of approximately 200 kilotonnes of CO₂, a 26 percent decline from the base year.

In 2024, Freudenberg's total energy consumption was 2,486 GWh, with 38 percent of electricity coming from renewable sources. The company achieved an energy efficiency rate of 0.21 kWh per euro of sales, with global CO₂ emissions (market-based) totaling 568,000 tonnes.

Freudenberg has maintained business ties with Indian companies for over 90 years and currently operates 11 production sites across the country. The Freudenberg Group, founded more than 175 years ago, employs over 52,100 people worldwide across 60 countries and focuses on innovation in sectors including seals, vibration control components, technical textiles, filters, cleaning technologies, specialty chemicals, medical products, and energy solutions.

The company has emphasized its commitment to long-term investments, with global investments rising 10.7 percent to €501.5 million. Research and development investments remained at a high level of €604.4 million, consistent with the previous year's €603.6 million, highlighting the company's strategy of sustained investment in future capabilities despite market challenges.