Brussels, 10 May 2023 – Daikin Europe N.V. has announced its financial group results for fiscal year 2022, ending 31 March 2023. Driven by strong demand for low-carbon heating and cooling solutions, Daikin reports significant growth in its EMEA turnover of 20%, which now amounts to 5.2 billion euro, the company’s best result ever.
Daikin Europe is market leader in the air conditioning, heating, ventilation and refrigeration (HVAC&R) business in Europe, the Middle East and Africa (EMEA).
Daikin reports significant sales growth overall in EMEA, despite ongoing global challenges, which include continued components shortage, supply chain disruptions, an energy crisis in Europe with record high gas prices, high inflation and lower buying power.
Brussels, 10 May 2023 – Daikin Europe N.V. has announced its financial group results for fiscal year 2022, ending 31 March 2023. Driven by strong demand for low-carbon heating and cooling solutions, Daikin reports significant growth in its EMEA turnover of 20%, which now amounts to 5.2 billion euro, the company’s best result ever.
Daikin Europe is market leader in the air conditioning, heating, ventilation and refrigeration (HVAC&R) business in Europe, the Middle East and Africa (EMEA).
Daikin reports significant sales growth overall in EMEA, despite ongoing global challenges, which include continued components shortage, supply chain disruptions, an energy crisis in Europe with record high gas prices, high inflation and lower buying power.
Reinforced market leader position
In the residential segment, Daikin reinforced its market leader position. The European market demand for heat pump heating grew faster than ever – over 40% compared to 2021, an effect of the EU measures to decarbonise its building stock and accelerate its independence from fossil fuels. Daikin captured additional market share thanks to investments in European production capacity faster than competition.
- Sales growth in the residential heating segment is mainly driven by Daikin’s air-to-water heat pump heating systems (Daikin Altherma). These have been popular in new-built homes for many years, and have now also found solid entry into the renovation market as full-featured alternatives for all types of fossil-based heating systems.
- Increasing popularity of using Daikin’s residential air conditioning split systems as energy-efficient heating solutions. These units are air-to-air heat pumps that provide both cooling and heating.
In the commercial segment, the post-COVID European market still showed instability in retail and hospitality industry investments. Daikin’s strongest asset proved to be the well-positioned line-up for light commercial applications such as small data centres and warehousing, and good availability of large commercial VRV ranges.
In the refrigeration segment, low demand from food retail chains had a negative impact on the results of Daikin Europe’s subsidiary AHT. Key actions have been initiated to mitigate this effect moving forward, by developing differentiated and integrated offerings.
Daikin also continued to strengthen its service capacities. In 2022, its Italian subsidiary acquired Landi S.p.A, a technical service provider, welcoming 50 new colleagues in the region of Lombardy, Italy.
Investing in new factories and existing manufacturing sites
In 2022 Daikin Europe continued to invest in Europe and the EMEA region, in line with its proximity strategy. Daikin sees this strategic direction as an important reason why it is able to ward off the most adverse effects of global supply chain issues. In the previous year, Daikin Europe announced:
- 90+ million euro investments to expand operations in its heat pump factories in Belgium, Germany, Czech Republic and Turkey.
- An investment of 300 million euro in a new factory for residential heat pump units in Poland. On track for completion in April 2024, the new factory will start operations in July 2024.
- The opening of its first factory in the Kingdom of Saudi Arabia, Daikin Europe’s second factory in the Middle East after Dubai. It is producing air handling units and energy-efficient equipment that is essential for large-space applied air conditioning solutions.
Upcoming 50th anniversary: decade-long consecutive growth in EMEA
The strong growth in 2022 exceeds the ambitions set out in Daikin Europe’s five-year strategic FUSION 25 plan. To keep pace with its ambitious growth trajectory, the Daikin Europe group welcomed over 1,200 new employees throughout its EMEA organization in 2022, growing its workforce by approximately 10%. The company continues to strengthen all its functions and plans to recruit 7,000 people before 2030, increasing its talent pool from 13,700 to 20,000 employees in EMEA.
