Press release Despite a difficult market environment, E.G.O. reports record turnover

E.G.O.-Group (E.G.O.), with a turnover of 772 million euros despite major challenges, is still on course for growth – Local-for-Local strategy is intended to increase the resilience of the company – Product innovations from E.G.O. shape the kitchen of the future

Oberderdingen – The signs continue to point towards growth: While it may not have seemed possible at first, E.G.O.'s turnover increased by almost 18% to 772 million euros in 2021. At the beginning of the year, the household appliance supplier based in Oberderdingen, Baden, had to cope with massive supply problems due to the pandemic. Other unforeseeable events, such as the “Ever Given” disaster in the Suez Canal, exacerbated the situation even further: “Several containers with supplier parts for the E.G.O.-Group sites were on board the ship and, of course, were not delivered on schedule. At the same time, the scarcity of essential materials on the global market led to significant cost increases, which reduced the results,” explained CEO Dirk Schallock at a hybrid press conference in Oberderdingen on Tuesday. The fact that the company group ended the year with record turnover would be largely due to the new corporate strategy.

Creative ideas and a clear strategy for sustainable growth

“The Local-for-Local strategy is designed to make E.G.O. the preferred business partner for customers in the appliance business worldwide,” says Schallock. The company is expanding its production and development network in the corresponding countries to serve customers on-site as quickly and optimally as possible. “Our new plant in Mexico is a successful example of Local-for-Local production. As of 2023/2024, energy regulators and tubular heating elements as well as natural gas components will be manufactured here for customers in the region. This will allow us to better serve existing customers in the American markets and acquire new customers,” Schallock explains the strategy. However, internationalization makes the group more resistant to crises and is therefore also a reaction to political and economic developments. Schallock cited the business units as another success factor. All functions that are important for product market cultivation are concentrated in these five units oriented according to product groups. “With this new structure, we have become significantly more efficient,” said the CEO. Overall, the product portfolio will be further expanded for systems, and acquisitions will also be examined. “At the beginning of 2021, we integrated the group of companies previously trading under DEFENDI into the E.G.O. Business Unit Gas. It now plays an important part in the development of E.G.O.,” said Schallock.

Sustainably digital

Digitalization and sustainability are other central parts of the E.G.O. strategy. According to Schallock, digitalization focuses primarily on product innovations and services. However, the group of companies is also using the opportunities offered by digitalization for smaller projects in a broad context. Schallock cited the conversion of older machines to ones with an internally developed digital interface solution as an example. “Instead of scrapping these machines, employees of E.G.O. Italy S.r.l., together with specialists from BLANC & FISCHER Corporate Services from the Corporate Lean Enterprise, Corporate Facility Management, and IT divisions, developed a scalable and cost-effective digitalization solution for old machines. This saves us license costs, the purchase price for a new machine pool, and conserves an enormous amount of resources that are not used to construct new machines,” Schallock is happy to report. In its sustainable digital form, this creative measure also contributes to achieving the ambitious sustainability goals of E.G.O. “By 2026, we want to reduce CO₂ emissions by 40% compared to 2019, make our products as circular as possible, meet 100% of the science-based sustainability targets of the Science Based Target Initiative, and achieve the best possible rating in the focus areas of “Climate Change” and “Water Security” by the non-profit organization Carbon Disclosure Project. In short, we want to be among the pioneers and best in the industry." An objective set for 2024 of making at least one site climate-neutral has already been achieved in 2022 by E.G.O. at its headquarters in Oberderdingen. 100% of the electricity demand is covered by electricity from renewable sources.

Full innovation pipeline

“The Innovation and Technology division process has also been optimized, which is now paying off with a wealth of innovative products,” explains Schallock. “Ki – cordless kitchen,” for example, is a new standard for cordless operation of smaller kitchen appliances with an output of up to 2.2 kW. They no longer need to be plugged in but can simply be placed on inductive charging surfaces in the kitchen. “With the Ki standard, working with kitchen appliances is as convenient as wireless charging of smartphones,” explained Schallock. Taking it one step further, it is conceivable that there will also be smart pots and pans and the networking of intelligent kitchen appliances.

Gx: Induction heating with optional cooking-supporting functions

Robust, connected, and adaptable – that’s how E.G.O. describes its flagship innovative induction technology. The new generation of the induction platform Gx can be easily adapted to the customer’s requirements. The customer can flexibly select the number, type, and arrangement of the cooking zones and the individual user interface. The new and optional cooking support functions such as steaming or frying make preparing delicious dishes easier and more efficient.

Gas electronically controlled

Another innovative approach is the new E-gas system from E.G.O. It consists of an electronic controller, modulation valves, and E.G.O. touch controls, offering users considerably more comfort and control options than conventional gas stovetops. These include timer and pause functions, child protection, residual heat display, and an automatic switch-off function of the gas stovetop after a few hours. The electronic control of the valves enables completely new operating concepts and innovative designs for gas stovetops.

Growth with thick film heating systems

The thick film heating systems are also among the product groups with excellent growth potential. The EGO Motor Heating Pump G2 for dishwashers, for example, combines the latest generation of EGO Thick Film Heating Systems with highly efficient brushless motor technology in a remarkably compact design. The newly developed heating element has a high heating capacity for shortened rinsing cycles and improved energy efficiency. An internal coating reduces deposits and thus increases the service life. The integrated temperature sensor eliminates the need for additional components on the dishwasher. Water pressure and flow are easily adjusted via the motor speed.

E.G.O. thick film steam generators for household ovens and steamers are compact, powerful, and have advanced sensor technology. You can generate consistent steam quantities very quickly in the smallest of spaces. The thick film heating system continuously monitors the degree of limescale build-up in the steam generator. This means that descaling processes are better controlled, and interruptions in operation are avoided. This is made possible by a special sensor layer on the heating area, which also monitors the water level.

Automated baking and cooking

The connected oven can be controlled remotely via an app. The choice of baking program, temperature setting, or even automated and guided cooking via a recipe menu is now possible. Using a built-in camera and corresponding analysis software, the baking oven automatically detects which foods are in the oven and can automatically select the proper cooking process. A meat thermometer with wireless transmission continuously monitors the cooking progress and regulates the temperature so that meat is perfectly roasted.

Energy regulator 50.9: Safe on the narrow ledge

With the new energy regulator 50.9 for radiant heating elements, E.G.O. has achieved unprecedented accuracy in controlling the temperature of radiant heating elements. This is of varying importance depending on the dish. In the very temperature-sensitive process of melting chocolate, the new EGO Energy Regulator 50.9 displayed what it can do. Usually, chocolate is melted in a water bath to compensate for small temperature variations. This is much easier with the 50.9 energy regulator: It reliably maintains the temperature within a small fluctuation range of a maximum of three percent. This means that even chocolate can be successfully melted in the pan – without burning or hardening. This precision is comparable to the electronic controls of induction heaters and has already earned excellent customer ratings for the energy regulator 50.9 in a market test in the USA.