SINGAPORE - Global staff of Singapore-headquartered Dyson missed out on a performance bonus, but 90 per cent of them will receive a one-off payment to recognise their “exceptional efforts”. This comes after sales climbed in 2022 but rising costs hit profit.
In addition, Dyson employees will also get a country-specific salary increase, while a one-time payment will be made to those most affected by the rise in the cost of living, the company announced on Tuesday night, along with its 2022 results.
Mr James Dyson’s engineering group grew revenue by 8.3 per cent to £6.5 billion (S$10.4 billion) in 2022, from £6 billion in the previous year, on higher demand for products such as high-end hair dryers and vacuum cleaners.
The company said its robust growth came despite unprecedented challenges, such as chip shortages, the extended Covid-19 lockdown in China, rising commodity, shipping and logistics costs, and materials and labour shortages, as well as the war in Ukraine and the closure of Dyson’s Russia business.
Rising costs and expenditure hit operating profit, with Ebitda falling 13.3 per cent to £1.3 billion from £1.5 billion in 2021. Ebitda stands for earnings before interest, taxes, depreciation and amortisation.
Dyson recruited more than 1,000 engineers, scientists and software experts globally in 2022. Its capital expenditure – on equipment and facilities – jumped 63 per cent to £463 million from £284 million.
Dyson global chief executive Roland Krueger said: “This was one of the toughest years that Dyson has faced, but thanks to some exceptional efforts from individuals, we navigated it, while the fact that we stepped up investment in the development of cutting-edge new technologies means we are well positioned for 2023 and our ambitious plans beyond.”
Revenue growth in 2022 was attributed largely to consumers increasingly buying products directly from Dyson’s own stores and website, rather than through third-party retailers, and spending more on higher-end devices.
The company said that in 2022, it incurred £120 million in inflation costs for its products, manufacturing and logistics, and £80 million in costs for additional resources, mainly for research, design and development.
In 2022, Dyson continued to invest in research and development (R&D) of new technology in the fields of energy storage, artificial intelligence, robotics, software and connectivity. It also made a £500 million investment in haircare. This is in line with the company’s previously announced £2.75 billion R&D plan.
New products launched by the company in 2022 include its first audio device, the Dyson Zone noise-cancelling headphones, which come with built-in air purification.
Dyson has engineering, R&D, manufacturing and testing operations in Singapore, Britain, Malaysia, Mexico, China and the Philippines.
The company remains family-owned and employs more than 14,000 people globally, including a 6,000-strong engineering team.
In Singapore, Dyson has a 1,400-strong workforce, 560 of whom are engineers and scientists.