HERMA Group 2010: Back on track for growth
Group sales reach 229.1 million euros / Consequences of financial and economic crisis overcome / All three divisions post strong growth / Four percent sales increase forecast for 2011
In the wake of two financial years with moderate sales declines, self-adhesive specialist HERMA is rediscovering the strong growth pattern established before the global financial and economic crisis took hold. Sales increased by 15.8 percent year on year, from 197.8 to 229.1 million euros. Managing directors Sven Schneller and Dr. Thomas Baumgärtner put the above-average growth into perspective, however, by pointing to an annual advance of only around four percent since 2007, when sales stood at 206.9 million euros. The company can be satisfied rather than euphoric, they said, at reaching the target set in 2007 despite the 2010 crisis. They were very pleased, however, that each of the three divisions, namely adhesive material, labels and labelling machines, made a substantial contribution to the sales growth.
The HERMA directors expect sales to edge up by a further four per cent in the current financial year. According to a statement issued by Schneller and Baumgärtner, "Performance in the first two months of 2011 indicate that the goal is realistic. In view of the many uncertainties that exist worldwide, on the other hand, the days of reliable forecasts may well be past. In any event, the continuing sharp rise in raw material prices is likely to curtail earnings significantly again. Most recently, earnings have been buoyed by an appreciable drop in depreciation." In fiscal 2010 the HERMA Group employed a total of 799 people (780 in 2009). The Group encompasses subsidiaries in France, the United Kingdom, Austria and the Netherlands. The export ratio increased slightly year on year, from 53.0 to 53.7 percent.
Adhesive material proves reliable source of growth
The adhesive material division maintained its success in 2010. As in the recent past, it grew much faster than the European market as a whole and gained market shares by displacing competitors. Sales rose by 19.1 percent year on year, from 103.8 to 123.6 million euros. For the first time in 2010, HERMA exploited the capabilities of its new ultra-modern coating plant by applying different layers of adhesive simultaneously and thus offering customers standard products with additional benefits. The launch of these innovative multi-layer products was extremely well received by the market from the outset and offers a lot of scope for further growth, especially since the range is to be expanded quickly.
Strong demand for labels
The labels division made appreciable progress with growth of more than eight percent to close the year with sales of 75.0 million euros (previous year: 69.1 million euros). The pattern differed considerably, however, between individual segments and regions. In view of the economic upturn, the cyclical industrial labels business gathered strong momentum in every sector, most notably in the chemical and logistics industries. The business with innovative laser-active labels also developed very well. A4 labels for commercial and home office applications, in contrast, struggled in the harsh climate. Growth in eastern Europe was unable to make good the downturns posted on the key markets in southern Europe, which remained sluggish. In Germany, furthermore, the trend towards own-brand and no-name products is becoming steadily stronger. HERMA nonetheless gained market shares and grew in individual sales channels. Through its webshop at www.herma-print.de, the company entered the printed labels segment.
Labellers very popular
The HERMA division that achieved the highest growth rate in 2010, at 22.7 percent, was labelling machines. Sales climbed from 24.9 to 30.5 million euros to shatter the record of 27.8 million euros posted in 2008. HERMA's management team indicated that the growth was driven predominantly by the focus on standard products and, in particular, the acquisition of new customers in the mechanical engineering sector. The HERMA 400 labeller has thus emerged as a major success on the global export market.
PR No.: ha-124-33