03-04-13
Member news
HERMA Group: On track for further growth
Group sales reach new high of 245.6 million euros / Significant international growth / Very satisfactory business pattern against current backdrop
The HERMA Group posted another new sales record in 2012. Revenues of 245.6 million euros represent a year-on-year increase of 3.5 percent (from 237.2 million euros). Commenting on the performance, managing directors Sven Schneller and Dr. Thomas Baumgärtner stressed that the self-adhesive technology specialist had maximised the business potential. They pointed out that economic recovery in the key eurozone market was taking longer than originally forecast. Although HERMA with headquarters near Stuttgart, Germany, grew its business internationally by 8.3 percent in a difficult climate, demand from German industry, which relies heavily on exports, weakened considerably, especially in the final two quarters. Total domestic sales of self-adhesive materials, labels and labelling machines thus contracted by 1.9 percent. The export ratio increased as a consequence, from 52.8 to 55.2 percent. All in all, the directors are very satisfied with the pattern of business in 2012 in view of the underlying conditions. Against the background of continuing economic uncertainty, they expect to come under increasing pressure in 2013 to enhance production efficiency and accelerate the pace of innovation. HERMA will be focusing on these targets in the year ahead. Given the signs of a slight economic upturn in the eurozone, Mr. Schneller and Dr. Baumgärtner regard sales growth of six percent as a realistic goal for the current fiscal year.
Self-adhesive materials: value-added multi-layer technology
Despite unabated stagnation in the market as a whole, HERMA's Self-adhesive Materials division further extended its market shares. Revenues climbed by 7.0 percent, from 130.8 million to 140.0 million euros. Among other factors, the renewed growth was driven by innovative products with multi-layer technology. HERMA is thought to be the only company to apply two different layers of adhesive simultaneously on an industrial scale. As a result, high-volume products that generate a lot of demand can be endowed with extra benefits at no additional cost.
Labels: exposed to structural and economic pressure
In view of ongoing structural change on the one hand and its sensitivity to the business cycle on the other, the Labels division is especially susceptible to fluctuation. In 2012, these influences were reflected in a sales decline of 3.3 percent, from 77.0 million to 74.5 million euros. The business with office and consumer products, which customarily generate only little growth impetus, remains under pressure from the massive inroads being made by discount and own-brand providers. HERMA nonetheless further developed its promising business with large shippers. In the industrial labels segment, the weakness of the export markets was mirrored by caution on the part of German label customers. In the view of the two managing directors, however, the healthy order situation and the growth in business with international corporations give cause for guarded optimism.
Labelling machines: strong export business
After a good 2011, the Labelling Machines division posted a further sales advance of 5.9 % in 2012, chiefly thanks to strong international business. Revenues totalled 31.1 million euros (previous year 29.4 million euros). Action has already been taken to safeguard additional growth. Mr. Schneller and Dr. Baumgärtner pointed to several projects being implemented by the division's new leadership to ensure the success of an ambitious growth strategy. These include a campaign to forge even closer cross-border ties between individual HERMA companies and sales partners, extending the service offering, and the further automation of assembly processes.
The HERMA Group posted another new sales record in 2012. Revenues of 245.6 million euros represent a year-on-year increase of 3.5 percent (from 237.2 million euros). Commenting on the performance, managing directors Sven Schneller and Dr. Thomas Baumgärtner stressed that the self-adhesive technology specialist had maximised the business potential. They pointed out that economic recovery in the key eurozone market was taking longer than originally forecast. Although HERMA with headquarters near Stuttgart, Germany, grew its business internationally by 8.3 percent in a difficult climate, demand from German industry, which relies heavily on exports, weakened considerably, especially in the final two quarters. Total domestic sales of self-adhesive materials, labels and labelling machines thus contracted by 1.9 percent. The export ratio increased as a consequence, from 52.8 to 55.2 percent. All in all, the directors are very satisfied with the pattern of business in 2012 in view of the underlying conditions. Against the background of continuing economic uncertainty, they expect to come under increasing pressure in 2013 to enhance production efficiency and accelerate the pace of innovation. HERMA will be focusing on these targets in the year ahead. Given the signs of a slight economic upturn in the eurozone, Mr. Schneller and Dr. Baumgärtner regard sales growth of six percent as a realistic goal for the current fiscal year.
Self-adhesive materials: value-added multi-layer technology
Despite unabated stagnation in the market as a whole, HERMA's Self-adhesive Materials division further extended its market shares. Revenues climbed by 7.0 percent, from 130.8 million to 140.0 million euros. Among other factors, the renewed growth was driven by innovative products with multi-layer technology. HERMA is thought to be the only company to apply two different layers of adhesive simultaneously on an industrial scale. As a result, high-volume products that generate a lot of demand can be endowed with extra benefits at no additional cost.
Labels: exposed to structural and economic pressure
In view of ongoing structural change on the one hand and its sensitivity to the business cycle on the other, the Labels division is especially susceptible to fluctuation. In 2012, these influences were reflected in a sales decline of 3.3 percent, from 77.0 million to 74.5 million euros. The business with office and consumer products, which customarily generate only little growth impetus, remains under pressure from the massive inroads being made by discount and own-brand providers. HERMA nonetheless further developed its promising business with large shippers. In the industrial labels segment, the weakness of the export markets was mirrored by caution on the part of German label customers. In the view of the two managing directors, however, the healthy order situation and the growth in business with international corporations give cause for guarded optimism.
Labelling machines: strong export business
After a good 2011, the Labelling Machines division posted a further sales advance of 5.9 % in 2012, chiefly thanks to strong international business. Revenues totalled 31.1 million euros (previous year 29.4 million euros). Action has already been taken to safeguard additional growth. Mr. Schneller and Dr. Baumgärtner pointed to several projects being implemented by the division's new leadership to ensure the success of an ambitious growth strategy. These include a campaign to forge even closer cross-border ties between individual HERMA companies and sales partners, extending the service offering, and the further automation of assembly processes.