Herma reports record sales

Self-adhesive materials manufacturer Herma has reported that in 2011 group sales increased by three and a half percent, from 229.1 million to 237.2 million euros – the most in the company's 106-year history.

The company also completed a 50 million euro investment program, said to transform its Filderstadt facility into one of the most modern plants of its kind in the world.

The number of employees rose from just below 800 in 2010 to around 830. The export ratio remained practically unchanged year on year, edging down from 53.7 percent to 52.8 percent.

However, there was a slight decline in profits which, despite the sales growth, were pushed down by some dramatic raw material price increases. Managing directors, Sven Schneller and Dr Thomas Baumgärtner, stressed that 2011 was still a very good financial year overall for Herma, insisting all three divisions continue to occupy very good positions in 2012 with product ranges that are generating strong demand in the international arena, as well as market-ready innovations.

Herma continues to manufacture exclusively in Germany, with extensive investments in the most efficient production procedures. According to Schneller and Baumgärtner, this policy enables the company to offer the precision and perfection required to create crucial value-added for its customers.

Self-adhesive materials continue to grow market share

The overall European market remained flat in 2011 but Herma’s self-adhesive materials division made significant gains and captured additional market shares. Sales advanced year on year by almost six percent, from 123.6 million to 130.8 million euros, fuelled primarily by new products, including the laser-activated material Herma LAM, and additions to the Hermaperfect range. Systematically developing its sales organization at home and abroad, the division achieved a breakthrough with global customers in 2011. ‘This penetration will appreciably bolster our growth in the years ahead,’ explained Baumgärtner, who also oversees the self-adhesive materials division.

Industrial demand drives label sales volume

The labels division posted year-on-year sales growth of 2.7 percent, from 75.0 million to 77.0 million euros. In particular, it benefited from the strong demand for labels for the chemicals industry. As well as new business with major customers in the retail, logistics and consumer goods sectors. More industrial customers are switching to advanced labeling technology, also increasing the demand for modern laser-activated labels. The market for office and consumer products, in contrast, was stagnant. The sales generated by Herma enabled it to increase its market share, at least in Germany. Downturns were posted, however, on some foreign markets with weaker economies.

Further strong growth forecast for labeling machines

Following considerable growth in 2010, the labeling machines division slowed in the 2011 financial year and sales dropped by 3.6 percent, from 30.5 million to 29.4 million euros. Schneller insisted, ‘We are nonetheless satisfied with the business pattern because we have continued to develop the division's workforce and structure while maintaining a very good order situation. Herma has the ability to grow substantially here, and we are now ready to focus on harnessing that potential in the next few years.’

The two managing directors take a confident view of the future and are budgeting for consolidated sales growth of five percent in the year ahead. While conceding that their plans are ambitious in view of slightly more gloomy economic forecasts, they firmly believe that the target is feasible.

Pictured: Herma completed an investment program to transform its Filderstadt facilty

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