The Bosch Group is successfully implementing its growth strategy despite a difficult environment

The Bosch Group increased its sales and earnings in 2023 and is successfully implementing its growth strategy despite a difficult environment. Presenting the company’s annual figures, Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, said: “In the 2023 business year, we achieved our financial targets and strengthened our market position in a number of business areas, from semiconductors to integrated building systems. We’re pursuing innovations, partnerships, and acquisitions to ensure we grow as our industries transform – despite economic headwinds.”

Over the long term, the supplier of technology and services wants to achieve average annual growth of between 6 and 8 percent, with a margin of at least 7 percent. It also aims to rank among the top three suppliers in its key markets in all regions of the world. Bosch is also strategically expanding innovation fields with growth opportunities. In medical technology, for example, it has announced it will be working on a novel BioMEMS technology that combines molecular diagnostics with microsystems technology. It enables precise tests for up to 250 genetic traits such as pathogens or genetic mutations on a single chip, and directly at the point of care – in a doctor’s office, for example.

“BioMEMS combines molecular diagnostics with the microsystems technology that Bosch deploys in smartphones and ESP anti-skid systems,” Hartung said. One of the first BioMEMS tests the company is working on will target various pathogens that cause sepsis, or blood poisoning. For this purpose, Bosch recently entered into a development and sales partnership with Randox. A further strategic partnership with R-Biopharm AG is intended to accelerate the development of a fully automated test for multidrug-resistant bacteria. Together with these two partners, Bosch plans to invest some 300 million euros by 2030.

In the past business year, Bosch generated sales of 91.6 billion euros despite unfavorable economic and market conditions. This is an increase of 3.8 percent, or an exchange rate-adjusted 8.0 percent. Earnings from operations before interest and taxes (EBIT) amounted to 4.8 billion euros (2022: 3.8 billion euros). At 5.3 percent, the EBIT margin from operations was 1 percentage point higher than the previous year. It was therefore higher than expected, but still lower than the target margin of at least 7 percent required over the long term. Bosch wants to achieve this by 2026. “We need a high level of profitability and financial strength so we can self-finance our growth targets as far as possible,” said Dr. Markus Forschner, member of the board of management and chief financial officer of Robert Bosch GmbH. “A successful final sprint contributed to our expectations for 2023 on the whole being met. However, the 2024 business year will be at least as challenging as 2023.”