June 08, 2012
German Powerhouse Vorwerk Continues to Grow and Invest
Vorwerk Managing Partners Walter Muyres and Reiner Strecker reported a successful 2011 for the Germany-based direct selling company, which closed the financial year 2011 with a 4.2 percent increase in sales and succeeded in boosting its pre-tax profits.
At a financial press conference held in Wuppertal, the partners reported that Vorwerk generated sales totaling 2.367 billion euros in 2011. Consolidated business volume, including new business in financial services, was up from 2.4 to 2.7 billion euros.
The Vorwerk Group divisions successfully launched an array of new products and services last year. Muyres and Strecker announced their intention of pursuing this course of diversification, and that to this end, over the coming three years, 36 million euros would be invested in new production equipment at the largest Vorwerk production site, in Wuppertal.
“This represents our clear commitment to Wuppertal and to products carrying the ‘Made in Germany, label,‘” said Strecker.
The company’s U.S.-based Jafra Cosmetics (Westlake Village, California) generated 3 percent growth in local currency to close 2011 with sales totaling 611 million US dollars (439 million euros). Sales in Mexico, the strongest JAFRA market, amounted to 342 million euros in the year under review. The most dynamic growth of all JAFRA markets was reported in Brazil, where sales worth 14 million euros were generated. The division’s European markets also returned an increase in revenue. More than 555,000 consultants currently work for JAFRA Cosmetics.
Since 1930, Vorwerk’s core business has been the direct selling of household products (Kobold vacuum cleaner, Thermomix kitchen appliance, various Lux Asia Pacific products) and cosmetics (JAFRA Cosmetics). Worldwide there are approximately 600,000 Vorwerk independent sales partners who operate in more than 70 countries.
To see the full press release, click here.