10-04-15
Member news
HERMA Group: Strong growth in all divisions
• HERMA Group revenues climb by 8.0 percent in 2014 to reach a new record of 282.0 million euros.
• HERMA growing much faster than the market.
• "We are cautiously optimistic for 2015" – HERMA budgeting for 3.5 percent growth this year.
Self-adhesive materials, labels and labelling machines made by HERMA have never been more popular worldwide. Posting an advance of 8.0 percent in fiscal 2014, the self-adhesive technology specialist once again grew at a much faster pace than the market as a whole. Sales increased year on year from 261.2 to 282.0 million euros – closing at an all-time high in the company's almost 110-year history. All three divisions – Self-adhesive Materials, Labels and Labelling Machines – contributed to the growth. According to HERMA's managing directors Sven Schneller and Dr. Thomas Baumgärtner, the Group appreciably outperformed its budget, which targeted growth of just 2.6 percent. Despite the Russian crisis and only weak growth impetus in parts of the eurozone, HERMA raised its foreign sales in particular, which climbed by 11.2 percent from 143.7 to 159.8 million euros. As a consequence, the export ratio increased from 55.0 to 56.7 percent. Domestic growth stood at 3.9 percent. The joint managing directors are "cautiously optimistic" about the prospects for 2015. The budget is set for a sales advance of 3.5 percent. Measured against the first quarter of 2015, performance is currently on target. The number of employees throughout the HERMA Group with headquarters near Stuttgart, Germany, is expected to continue on a steep upward trajectory. It is forecast to climb from 873 (2014 year-end) to 913 at the end of 2015.
Growth driven by international orientation
As in the past, the Self-adhesive Materials division benefited from its innovative strength, which enabled it to grow by 9.3 percent to 161.6 million euros (prior year 147.9 million euros). The overall market for self-adhesive material increased by just 5 percent. "In 2014 we invested substantially in manufacturing technology for speciality products, so that we can now target growth in the very promising segment for special-purpose adhesive materials as well," explains managing director Dr. Thomas Baumgärtner, who also oversees the Self-adhesive Materials division. "Equally important, however, was the development of our international activities. Most recently, for example, we teamed up with an exclusive distribution partner for the Middle East." In the Labels division, exceptional growth was recorded in business with industrial customers and logistics service providers. Managing director Sven Schneller comments, "Thanks to our strong performance and efficiency, we are acquiring more and more large international companies as clients. In this segment we are also benefiting from the growing online retail business and the demand it generates for shipping and return labels." Despite long-running stagnation in the office supplies market, the Labels division grew overall by 4.7 percent, from 78.4 million euros in 2013 to 82.1 million euros in 2014. Measured in percent, HERMA posted the strongest growth in its Labelling Machines division. Sales increased by 9.6 percent year on year, from 34.9 to 38.2 million euros. "Apart from our sustained focus on internationalisation, the success was driven by our concentration on defined growth sectors, the launch of an affordable entry-level labeller, and our extensive expertise in special-purpose labelling machines," comments Schneller.
• HERMA growing much faster than the market.
• "We are cautiously optimistic for 2015" – HERMA budgeting for 3.5 percent growth this year.
Self-adhesive materials, labels and labelling machines made by HERMA have never been more popular worldwide. Posting an advance of 8.0 percent in fiscal 2014, the self-adhesive technology specialist once again grew at a much faster pace than the market as a whole. Sales increased year on year from 261.2 to 282.0 million euros – closing at an all-time high in the company's almost 110-year history. All three divisions – Self-adhesive Materials, Labels and Labelling Machines – contributed to the growth. According to HERMA's managing directors Sven Schneller and Dr. Thomas Baumgärtner, the Group appreciably outperformed its budget, which targeted growth of just 2.6 percent. Despite the Russian crisis and only weak growth impetus in parts of the eurozone, HERMA raised its foreign sales in particular, which climbed by 11.2 percent from 143.7 to 159.8 million euros. As a consequence, the export ratio increased from 55.0 to 56.7 percent. Domestic growth stood at 3.9 percent. The joint managing directors are "cautiously optimistic" about the prospects for 2015. The budget is set for a sales advance of 3.5 percent. Measured against the first quarter of 2015, performance is currently on target. The number of employees throughout the HERMA Group with headquarters near Stuttgart, Germany, is expected to continue on a steep upward trajectory. It is forecast to climb from 873 (2014 year-end) to 913 at the end of 2015.
Growth driven by international orientation
As in the past, the Self-adhesive Materials division benefited from its innovative strength, which enabled it to grow by 9.3 percent to 161.6 million euros (prior year 147.9 million euros). The overall market for self-adhesive material increased by just 5 percent. "In 2014 we invested substantially in manufacturing technology for speciality products, so that we can now target growth in the very promising segment for special-purpose adhesive materials as well," explains managing director Dr. Thomas Baumgärtner, who also oversees the Self-adhesive Materials division. "Equally important, however, was the development of our international activities. Most recently, for example, we teamed up with an exclusive distribution partner for the Middle East." In the Labels division, exceptional growth was recorded in business with industrial customers and logistics service providers. Managing director Sven Schneller comments, "Thanks to our strong performance and efficiency, we are acquiring more and more large international companies as clients. In this segment we are also benefiting from the growing online retail business and the demand it generates for shipping and return labels." Despite long-running stagnation in the office supplies market, the Labels division grew overall by 4.7 percent, from 78.4 million euros in 2013 to 82.1 million euros in 2014. Measured in percent, HERMA posted the strongest growth in its Labelling Machines division. Sales increased by 9.6 percent year on year, from 34.9 to 38.2 million euros. "Apart from our sustained focus on internationalisation, the success was driven by our concentration on defined growth sectors, the launch of an affordable entry-level labeller, and our extensive expertise in special-purpose labelling machines," comments Schneller.