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Bosch in the United Kingdom
Annual financial results 2023

Bosch UK and Ireland records strong growth as sales move above pre-pandemic level

Annual financial results 2023
  • Sales in UK and Ireland up nearly 10 percent, now above pre-pandemic level
  • Bosch completed acquisition of HydraForce, with European HQ in Birmingham, and invested in Quantum Motion, based in London
  • Optimistic forecast for increased sales in current year
  • Bosch UK celebrated its 125th anniversary in 2023

Denham – Bosch, a leading global supplier of technology and services, ended its 2023 fiscal year with almost £3.5 billion (3.99 billion euros) in consolidated sales in the UK and Ireland. This represents growth of nearly 10 percent over the previous year, and around 7 percent above pre-pandemic level.

Bosch has a broad presence in the UK and Ireland, with all four of its business sectors – Mobility, Industrial Technology, Consumer Goods, and Energy & Building technology – represented in locations across England, Ireland, and Scotland. As of December 31, 2023, the region employs more than 6,700 associates in roles that include sales, engineering, and development.

Vonjy Rajakoba, Managing Director of Bosch UK and Ireland, said: “In a year marked by slow economic growth, high interest rates, low consumer confidence and increased geo-political uncertainty, I’m extremely happy that we achieved double-digit growth with £3.5 billion in sales, clearly above pre-pandemic levels. In 2023 we celebrated our 125th year of being present in the UK, and these achievements are evidence of the resilience and the resourcefulness of our associates as well as the strength of the company.”

For the current business year, Bosch UK and Ireland forecasts an increase in sales and profit. “We are not expecting improved market conditions in 2024,” said Vonjy Rajakoba. “The economy is showing slow growth, and forecasts are cautious on automotive production and only a weak rebound is expected in consumer spending. In spite of this, we are confident that we will continue our profitable growth trajectory.”

Development of Bosch business sectors in the UK and Ireland
In 2023, Bosch Mobility recorded significant growth in comparison to the previous year. It is the largest Bosch business sector in the UK and Ireland region and it benefitted from the UK’s new car market recording its best year since the pandemic, with 17 consecutive months of growth up to December 2023 and the easing of semiconductor supply. Bosch Mobility includes the Automotive Aftermarket business, which was also up by a promising margin as a result of increased demand for automotive repair and maintenance.

In addition to the very positive result from Bosch Mobility, Industrial Technology started the year successfully and went on to show strong growth that exceeded its 2023 forecast.

While the market share of Consumer Goods was up, and the Power Tools division resolutely gained market share, this was in a market that declined overall. This is due to a weak construction sector, the burden of inflation and high interest rates negatively affecting consumer spending. Therefore, the overall result was down marginally compared to 2023 but in line with expectations. The performance varied slightly between different units, for example BSH exceeded its 2023 forecast despite a decline in the overall market.

The Energy and Building Technology division, which now includes Protec Fire & Security, which is based in Lancashire and was acquired by Bosch in 2021, also ended the year with a positive result.

Continuous investment into the region
Robert Bosch came to London in 1898 to establish the first location of his company outside of Germany. He was attracted to the entrepreneurial spirit of the time. Bosch continues to see the UK as a location for investment in high-tech businesses. In 2023, Bosch Ventures participated in a funding round in Quantum Motion, which is based in Oxford and London. This was one of the most significant raises in UK quantum computing and it allows Quantum Motion to accelerate its development of silicon quantum processors by developing deeper ties with its manufacturing partners and trebling the size of its central London headquarters. It represents the latest in a variety of acquisitions and investments in areas that are strategically important to Bosch UK and Ireland since 2021, which have collectively totaled more than £600 million.

During the year, Bosch also completed its acquisition of HydraForce, which has its European headquarters in Birmingham. The manufacturer of compact hydraulics complements the Bosch Rexroth business, which has a large manufacturing base in Glenrothes in Scotland.

Bosch Group: outlook for 2024 and strategic course
The Bosch Group increased its sales and earnings in 2023 and is successfully implementing its growth strategy despite a difficult environment. 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.” The company increased its sales by 3.8 percent compared to the previous year to 91.6 billion euros despite unfavorable economic and market conditions. 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. In the first quarter of 2024, sales were down by more than 0.8 percent year on year; after adjusting for exchange-rate effects, this amounts to an increase of 2.7 percent. However, the company expects that it will be difficult to increase the EBIT margin from operations compared to the previous year. In addition to the subdued market environment and the expected further increase in upfront investments in areas of strategic importance, restructuring and process improvements will also have a negative impact at first, with their positive effect coming only after a delay. Even if the economic and social environment remains demanding, Bosch aims to rank among the top three suppliers in its key markets in all regions of the world. “We’re pursuing innovations, partnerships, and acquisitions to ensure we grow as our industries transform – despite economic headwinds,” Hartung said.

In its core mobility business, for example, Bosch is systematically driving forward strategic decisions for future growth. This year alone, it is launching some 30 production projects for electric vehicles. In the growth area of hydrogen, Bosch has reaffirmed its business expectations: by 2030, its sales with hydrogen technology could reach 5 billion euros. Bosch is also systematically exploiting growth opportunities in the area of heating technology. Although the heat-pump market stagnated across Europe in 2023, Bosch was able to grow its business by almost 50 percent. In the years ahead, Bosch will continue to grow significantly faster than the market in this segment. However, there could be a slight improvement in the consumer goods markets after two years of consumer restraint. Bosch expect its own business to stabilize, to which innovations as well as the expansion of its international footprint should contribute. Overall, climate action continues to play a central role for Bosch. In Hartung’s view, it offers great opportunities for growth, even if markets such as electromobility are not developing as fast as expected. Nonetheless, Bosch is continuing to make heavy upfront investments in technologies for a carbon-neutral future, in order to help shape this transformation from the top. “There is pressure to cut subsidies for CO2-efficient technologies. But climate action requires sustained investment – from government, from companies, and from each and every one of us,” Hartung said.

Note to Editors:

For more information about the 125th anniversary of Bosch UK, visit: https://www.bosch.co.uk/125-years-of-bosch-uk/