Germany-based The Würth Group, one of the largest industrial distributors in the world, reported annual sales of over EUR 20 billion ($21 billion+ USD) for the first time in its corporate history, according to 2023 fiscal year preliminary financial statements.

The company noted that despite the tense global economic and political climate that has an impact on the operating result, the group’s sales grew by 2.4%. Adjusted for currencies, sales growth came out at 3.5%. The operating result is expected to remain below last year’s result at EUR 1.4 billion (2022: EUR 1.6 billion), the second-best result in the history of the group.

“We were able to double our sales volume over the past nine years,” said Robert Friedmann, Chairman of the Central Management Board of the Würth Group in a Jan. 18 news release. “Last year, the group’s heterogeneous structure across different industries and regions and our business model were once again the basis of our success. The construction sector, an important industry for the Würth Group, showed a slow sales development, which could be compensated for by other strategic business units such as the Electrical Wholesale unit.”

In addition to the ongoing conflict between China, Taiwan and the U.S., Würth cited the wars in Ukraine and the Middle East, inflation-driven cost increases — especially for energy and raw materials — and high lending rates that hampered demand in the construction industry as also having a negative impact on the group’s overall result.

The group owns Würth Industry North America, which ranked No. 16 on MDM’s 2023 Top Industrial Distributors list.