BELGIUM: Daikin Europe NV recorded turnover of €5.03 billion in the EMEA region for the year to the end of March, up around 2.5% on the previous year.

While residential heat pump sales were below expectations, sales growth was driven by the commercial and industrial business lines and integrated services and solutions.

The Ostend-based subsidiary of the Japanese manufacturer says the European heat pump heating market continues to face significant challenges, citing high electricity to gas price ratios that are putting pressure on the availability of air-to-water heat pumps compared to traditional gas boilers in the replacement market.

The company also blames regulatory uncertainty, which is affecting consumer confidence. Although heat pump sales remained below expectations, Daikin says it has achieved market share growth.

The residential cooling market has contracted in the EU due to mild summer conditions and “economic challenges”. However, sales of air-to-air heat pumps have grown, with Daikin promoting them as a sustainable solution for all seasons.

The launch of innovative products such as the Multi+ range of domestic water heaters, which allows homeowners to heat domestic water using an air-to-air heat pump, is said to have further strengthened Daikin’s competitiveness.

Sales of domestic air conditioning equipment in Turkey have increased thanks to summer heat and dealer support programs.

Commercial and industrial

The commercial and industrial segments demonstrated strong positions in areas such as data centers, warehousing, hospitality, and pharmaceuticals.

In the DX segment, Daikin posted strong growth thanks to its strong R32 heat pump range, while Daikin Applied Solutions’ chilled water business outperformed last year’s results.

In the EU, demand in the industrial markets of Germany and France remained stable, while several data centre projects in the Nordic countries were postponed.

However, Daikin says its vertical market approach to industrial and medical applications has enabled the company to win important projects in many regions.

Daikin also completed major projects in the Middle East (UAE and Saudi Arabia), contributing to record high sales in these regions.

This year, the company also consolidated its services and solutions, including turnkey solutions, remote monitoring and rental solutions, under a single brand, Daikin 360. This business grew and contributed significantly to the vertical market results.

Growing Cold Chain Business

Sales in Daikin’s cold chain segment were also positive, with the main driver of sales growth being the switch from HFC units to the new generation propane refrigerant systems.

The hotel and food business sectors saw growth compared to last year, driven by strong growth in tourism in Spain and sales through new channels such as wholesalers in the UK, France, Italy and Germany.

https://www.coolingpost.com/world-news/daikin-sales-steady-despite-depressed-heat-pump-sales/