Declining sales

Thermomix weak for the second year in a row

Vorwerk's most important product is still the Thermomix, which was invented in 1971. The TM6, the current model, accounts for more than 50 percent of sales.

(Bild: Vorwerk)

Consumers' thriftiness once again put pressure on the business of Thermomix manufacturer Vorwerk last year. For the second year in a row, the German family-owned company, known for its direct sales with representatives, sold fewer units of the popular kitchen appliance. "We are feeling the reluctance to buy. Our advisors have to show more commitment and give more demonstrations in order to close deals," says Vorwerk CEO Thomas Stoffmehl.

The year 2023 was nevertheless significantly better than the previous one. On balance, Vorwerk was able to increase its annual net profit to EUR 133 million, almost tripling it. According to the Group, it benefited from the fact that the situation regarding energy prices and supply chains eased significantly. Prices for individual parts, shipping and logistics costs have fallen, it said.

Thermomix as a cash cow
Vorwerk's most important product is still the Thermomix, which was invented in 1971. The TM6, the current model of the 1,500 euro kitchen machine, accounts for more than 50 percent of sales. Like many other manufacturers of small electrical appliances, Vorwerk enjoyed rapid demand during the pandemic. Between 2019 and 2021, Thermomix sales increased by a third. Since then, development has stagnated and unit sales have recently declined. Stoffmehl speaks of saturation.

In 2023, Vorwerk sold well over one million kitchen appliances worldwide, achieving record sales of more than EUR 1.7 billion. However, the small increase of 0.8 percent compared to the previous year is mainly due to the fact that the price of the Thermomix has been increased twice since mid-2022.

Declining profits expected
Stoffmehl expects profits to "probably fall significantly" in the current year. Among other things, this is due to planned investments in the three-digit million range. There will be no new Thermomix this year. "We have no pressure," said Stoffmehl. He wants to expand his own community. He proudly points to the 5.1 million subscribers to the Cookidoo recipe platform; in 2019, the number was still below the million mark.

The independent consultants who demonstrate the products at events and Thermomix parties are at least as important as the customers for Europe's largest direct sales company, which was founded in 1883. According to the company, Vorwerk employed more than 100,000 people worldwide at the end of the year. According to Stoffmehl, the fact that the number has halved in comparison to the previous year is due to the sale of the Jafra cosmetics division.