Business News
Edelmann Group: Stable financial year in 2013 and positive prognosis for 2014
Wednesday 19. March 2014 - At 233 million Euros, 2013 group turnover is at previous year's level 55% of turnover generated abroad Edelmann Group successfully consolidated after acquisitions 2014 turnover increase to 248 million Euros is projected
Edelmann, the internationally active manufacturer of high quality packaging solutions made of board and paper, has closed the financial year 2013 with a stable turnover of 233 million Euros, same as the previous year’s level. The share of turnover from foreign companies was 55.4 per cent and therefore continued to gain importance (2012: 52 per cent). The financial year 2013 was strongly influenced by consolidation measures. With Edelmann India, the group integrated its thirteenth production plant. At the same time, it made investments amounting to 13 million Euros (5.6 per cent of the group turnover) in technical equipment for its production plants. This should help guarantee the worldwide service commitment to provide “High Q Packaging” Edelmann continues to commit to a strongly international focus. The next step is planned in Latin America in 2014 – a market analysis is currently underway.
The worldwide service commitment to providing “High Q Packaging” was the determining factor for the 13 million Euro investment, which was increased in the financial year 2013 to 5.6 per cent of the group turnover (2012: 4.4 per cent). The latest technologies in digital and offset printing at the plants in Heidenheim, Lindau and Bitterfeld have facilitated a reduction in the order processing times and enable us to offer the customer innovative approaches to finding solutions.
In the financial year 2014, Edelmann is planning for an investment volume of 14.5 million Euros. The construction of a production facility at Edelmann in Hungary is being planned, and the printing machinery at the plants in Mexico and India will be updated. In addition, technological investments at the plant in Leverkusen will establish the basis for further expansion of leaflet production.
2013: Core Group expertise prevails on the market
Edelmann Group prevails again in 2013 with their core expertise, the manufacture of folding cartons, leaflets, and system solutions for the health and beauty care market as well as consumer brands. A breakdown of turnover by sectors shows the health care and beauty care segments at 40 per cent each. The consumer brands sector showed a 20 per cent share. The share of the total 2013 turnover for leaflet production was 10 per cent. Altogether the Group’s 2,200 employees produced 4.0 billion folding cartons and 1.1 billion leaflets.
2014: Additional internationalisation intended
With the acquisition of the Edelmann India production plant in September 2013, the international packaging manufacturer reinforced their presence in the growing Asian market. 250 employees manufacture high quality packaging for the beauty care and health care sectors in northern India, in the state of Himachal Pradesh. The expansion of the business at the production plant in India to include the production of packaging for cosmetics and hair coloration products from the French group L’Oréal is being planned.
There are new markets being created in the beauty care, health care and consumer brands segments. Analysts expect that the emerging markets will make up a total of 40 per cent of the global pharmaceuticals market by 2016. The cosmetic industry is focusing on growth regions such as China, Asia-Pacific, and in the medium term also Brazil and Africa. Edelmann is closely observing this development and will also accompany their customers into these markets. The takeover of an additional company in Latin America is planned for 2014.
“Breathing factory” will shorten processing in the future
“Quick and convenient communication, vendor-managed inventory, significantly shortened delivery periods and close proximity to customers – those are our fundamentals for customer satisfaction which must be continually expanded”, emphasises Edelmann CEO Dierk Schröder. Currently, Edelmann intends to solve the issue of shorter delivery periods with the “breathing factory” system. Flexibility for customers should be based on flexible working hours models. Negotiations with the employee representatives have begun. The results, initially for the plants in Heidenheim and Weilheim, should be available in sometime before the end of financial year 2014.