HERMA fiscal year 2024: Crisis-resistant and with sustained growth
In view of a continued economic downturn in the German economy, the HERMA Group demonstrated great crisis stability and resilience in 2024: The company, which specialises in packaging and labelling technology, increased its turnover by 5.4 percent to 452.6 million euros compared to 429.4 million euros in the previous year. An important contribution to this was made by strong business abroad, where HERMA was able to grow by 6.2 percent. However, sales in Germany were also up 3.9 percent on the previous year. As a result, the export share rose slightly from 64.2 percent in the previous year to 64.6 percent. "In the past financial year, we were once again able to reap the rewards of the HERMA 2030 Strategy, which focuses on the further diversification and internationalisation of our activities," emphasise the two Managing Directors Sven Schneller and Dr Guido Spachtholz. "However, all markets were characterised by a sometimes aggressive price war, which we were not always able to escape. All in all, 2024 was a challenging financial year, but we were still able to conclude it with stable profitability." For 2025, the two Managing Directors expect sales growth in the low single-digit percentage range - with continued pressure on margins and earnings. The number of employees remained almost the same in 2024: The total number of employees was 1,065 compared to 1,089 in the previous year. The number of trainees rose slightly - from 54 to 56. "Promoting our own young talent is and will remain our most important strategy against the shortage of skilled workers," confirm Sven Schneller and Dr Guido Spachtholz.
Holding its own in the face of aggressive price competition
The three divisions - Self-Adhesive Materials, Labels and Labelling Machines - all contributed to the increase in sales in 2024. In Self-Adhesive Materials, the HERMA Group maintained its market share despite aggressive price competition and even grew more strongly in terms of volume than the European market as a whole. Film products in particular also recorded strong growth. In total, the Self-Adhesive Materials Division increased its sales by 6.6 percent. In the Labels Division, traditional industrial business was characterised by the slowdown in the domestic economy, particularly in the chemical and manufacturing sectors. On the other hand, HERMA recorded a larger increase than planned in the important area of logistics labels. Demand for labels for office supplies also fell again due to the economic situation, but also due to the ongoing effects of home/mobile offices and the further digitalisation of previously paper-based processes. However, the decline in sales among globally active office supply retailers, which has been evident for many years, was halted for the first time in 2024. HERMA also increased sales of products for schoolchildren and students. This meant an increase of 1.5 percent for the entire Labels Division. The Labelling Machines Division successfully detached itself from the downward trend in the German mechanical engineering sector: While the industry as a whole is complaining of an 8 percent decline in orders for 2024, HERMA increased its sales in this area by 6.0 percent. New market and customer segments played an important role in addition to a growing service business.
"HERMA also maintained a good position in 2024 because we are active in a large variety of industries and in many different markets around the world - this has a stabilising effect on the entire Group," explain the two Managing Directors. "As a family-owned company, HERMA also prioritises healthy growth and cultivates long-term customer relationships based on partnerships. This makes the company more resistant to crises and creates the optimum basis for sustainable corporate success."