Daikin Europe Group surpasses the 1 Bio Euro
Daikin Europe NV (14/06/2005)
Daikin Europe NV realized a growth in sales of over 30% compared to 2003, with consolidated net sales of 1,134 Bio euro.
The closing of accounts for financial year 2004 confirmed that Daikin Europe NV has succeeded in realizing its very ambitious targets for this period. With consolidated net sales of 1,134 Bio euro, Daikin Europe NV realized a growth in sales of over 30% compared to 2003.
Although the summer of 2004 was not as exceptionally hot as in 2003, sales were nevertheless strong. The structural change in the air conditioning market, a change that first appeared in 2003, and the acquisition policy of Daikin Europe NV were the main pillars for further growth this year. Daikin Europe NV thus benefited from increased market demand for residential units in 2004, as well as for the commercial VRV equipment. The strong growth in the latter segment can be considered as a delayed effect of the 2003 hot summer, as new commercial construction projects take more time to come on stream.
Expanded market presence to support continued growth
In 2004, Daikin Europe further enhanced its sales network by acquiring its Scottish distributor. Shortly after, the company was merged with Daikin’s two other affiliated companies in the United Kingdom. The combined “Daikin Air Conditioning UK” now serves as a sound basis for the further expansion of Daikin in the United Kingdom. In addition, Daikin Europe’s Portuguese distributor was acquired, a move that will enable Daikin Europe to further expand its position in the highly competitive and expanding air conditioning markets of southern Europe.
Profitability up
The year 2004 not only represented a substantial growth in sales, but also a solid increase in profit. Daikin Europe NV has demonstrated that it is possible to fight strong price erosion in the European market resulting from continuous competitive pressure and low inflation. By investing in cost efficiency measures and thanks to increased productivity at the Ostend factory, strong increases in raw material prices were countered.
The new production facility in the Czech Republic that started up during the year will ensure additional capacity and high quality products. Optimisation of the supply chain and further exploitation of the SAP system go hand in hand, bringing the right products to the market faster than ever.
Ambitious targets for 2005
The success of 2004 is cause for optimism at Daikin Europe NV. The 2005 annual policy statement shows that solidification and enhancement of the various basic company pillars is crucial, as is the entering of new markets, both geographically and with respect to product range.
With the transfer of markets in the Middle East and Africa to Daikin Europe NV, parent company Daikin Industries Ltd. has demonstrated its confidence in the European management team. Daikin Europe NV is now responsible for exploring and further developing these markets. Throughout the company, various preparations are being made to capture these markets with the appropriate strategy regarding products, sales support, pricing and promotion.
To conclude, it should be clear to all that this policy requires the support of a strong personnel plan and a sense of entrepreneurship, in which room is provided for swift action according to various external circumstances.
All the above should enable Daikin Europe NV to again realize its ambitious targets in financial year 2005.
