After the EU decision and H1 2010:

GROHE grows strongly and continues to invest

Sales revenues climb 24 percent / EBITDA up 51 percent / Liquidityat high level / EU fine to be paid in due time / further investments planned in sales and production.

Düsseldorf, July 21, 2010. GROHE achieved respectable growth in the first half of 2010. Consolidated sales increased by 24 percent to EUR 490 million. Earnings before interest, taxes, depreciation and amortisation rose by 51 percent to EUR 97 million. The EBITDA margin reached 20 percent. Cash rose to EUR 240 million as at the end of June 2010.

EU fine to be paid in due time

Following six-year anti-trust investigations covering a period up to 2004, the EU Commission imposed a total fine of EUR 622 million on the European bathroom fittings industry. GROHE was affected as well and was ordered to pay a fine of EUR 54.8 million. The company will pay the amount in due time. GROHE had taken precautionary measures and has made provisions. The investigation began prior to the appointment of the current GROHE management. This management implemented a company-wide Code of Business Conduct and has always claimed best practice standards since then. The global Compliance Programme also includes regular training on anti-trust and
competition matters which are subject to a Zero Tolerance Policy at GROHE.

Expansion of research and development in Hemer

GROHE will invest roughly EUR 1.3 million in the expansion of the new Research and Development Centre in Hemer, which will be equipped with state-of-the-art future technology. The R&D Division, which is partly still based in Menden, will move to Hemer and be concentrated there.

Having invested more than EUR 25 million in the German plants over the past years, GROHE will further strengthen its German base through this new Research and Development Centre.

Moreover, GROHE will hire another 300 people for its global sales organisation.

Another plant under construction

Within the next 12 months, GROHE will open another plant in Thailand. The company invests approx. EUR 25 million in the construction of a new production facility in the immediate vicinity of the Klaeng plant, which was taken into service in 1995.

GROHE
Dr. Ulrike Heuser-Greipl
Senior Vice President Public & Investor Relations
Feldmühleplatz 15
40545 Düsseldorf
Phone: +49.(0)211/9130-3001
E-mail: ulrike.heuser-greipl@grohe.com

Media contact: HERING SCHUPPENER
Unternehmensberatung für Kommunikation GmbH
Kreuzstr. 60
40210 Düsseldorf
Phone: +49.(0)211.430 79-46/-66
E-mail: grohe@heringschuppener.com


20100720 GROHE H1 2010.pdf (73.60 KB)
20100720 GROHE press release H1 2010_EN.pdf (72.38 KB)