FUCHS SE sets new records in 2023, eyes continued growth amid global challenges
Photo courtesy of FUCHS SE

FUCHS SE sets new records in 2023, eyes continued growth amid global challenges

In a remarkable display of resilience and strategic foresight, FUCHS SE, a global leader in the lubricants industry, announced its financial results for the year 2023, marking a year of record-breaking performance and steadfast growth. The company reported a significant increase in sales revenues, EBIT, and free cash flow, alongside a consistent rise in dividends for the 22nd consecutive year.

With sales revenues climbing to EUR3,541 million (USD3,869 million), a 4% increase from the previous year, and EBIT surging by 13% to EUR413 million (USD451 million), FUCHS SE has not only outperformed its past achievements but also laid a robust foundation for future growth. The company’s free cash flow before acquisitions notably soared to EUR465 million (USD508 million), reflecting a strategic triumph in operational efficiency and financial management.

Comparing the year 2023 to its predecessors, FUCHS SE has shown remarkable agility in navigating the volatile market conditions, including fluctuating raw material costs and geopolitical tensions. The normalisation of raw material markets in 2023 allowed the company to refocus on its business development, leading to significant growth, especially in Europe, which performed exceptionally well. North America reported double-digit growth in local currency, while the Asia-Pacific region, particularly China, began to recover in the latter half of the year.

The company’s strategic expansion into Vietnam underscores its commitment to capturing growth in emerging markets, further solidifying its position in the Asia-Pacific region. Despite the geopolitical unrest and economic uncertainties, including the ongoing conflict in Ukraine and new crises in the Middle East, FUCHS SE remains optimistic about the future, projecting sales revenues of around EUR3.6 billion (USD3.9 billion) and an EBIT of approximately EUR430 million (USD470 million) for 2024.

FUCHS SE’s dedication to shareholder value is evident in its decision to increase dividends for the 22nd consecutive year, with a 4% rise to EUR1.11 (USD1.25) per preferred share and EUR1.10 (USD1.20 million) per ordinary share. This move, coupled with the expansion of its share buyback program, reflects the company’s strong financial health and its commitment to returning value to its shareholders.

As FUCHS SE looks towards 2024, the company is poised to continue its growth trajectory, driven by a focus on sustainability, the shift in mobility, and digitalisation. With significant investments in innovation and a strategic approach to addressing global megatrends, FUCHS SE is well-positioned to navigate the challenges and opportunities that lie ahead.

Stefan Fuchs, chairman of the Executive Board of FUCHS SE, expressed confidence in the company’s direction, stating, “The success of the past 12 months encourages us to stay on the path we have taken with FUCHS2025 and to keep intensively addressing the three major megatrends—sustainability, the shift in mobility, and digitalisation—to ensure a successful future.”

As FUCHS SE continues to move forward, its achievements in 2023 serve as a testament to the company’s enduring resilience, strategic vision, and unwavering commitment to excellence in the lubricants industry.