Following the extraordinary performance of the business in 2022, HERMA has recorded a decline in sales in the 2023 financial year. Both years were marked by extraordinary effects that had a strong impact throughout Europe. In the first four months of 2022, strikes took place in Finnish paper mills, which were decisive for the market, leading to massive shortages and at the same time rising raw material costs, as well as a significant increase in demand along the supply chains. HERMA achieved a surge in sales of almost 20 percent for the year as a whole in 2022 – with then disproportionately high customer inventories for 2023. As a result, the reporting period showed a market-driven sales adjustment with a decline of 15.9 percent – from 510.6 million euros in the previous year to 429.4 million euros. "In addition to the long-term reduction of our customers' inventories, the simultaneous weakness of the global economy with high inflation, interest rate increases and restraint in investment and consumption also generated a noticeable headwind," explain Sven Schneller and Dr. Guido Spachtholz, managing directors of the company specialising in packaging and product labelling. "This was why the adjustment emerged. But there has been a reverse in the trend and we are back on a growth path in the first quarter of 2024. We expect an increase of 3 percent for the year as a whole." All three business divisions – Self-adhesive materials, Labels and Labelling Machines – will contribute to this. Despite the external crisis scenarios, the number of employees remained at a high level in 2023, reaching 1,089 at the end of the year (previous year: 1,126). The number of trainees has even increased. At 64.2 percent, exports represented practically the same level as in the previous year (64.0 percent).
Increased market share
According to FINAT (Féderation INternationale des fabricants et transformateurs d'Adhésifs et Thermocollants sur papiers et autres supports), the European self-adhesive materials market recorded a total volume decline of 25.7% in 2023 compared to the previous year. "In comparison, HERMA as a whole as well as the Self-adhesive Materials division, performed better and took advantage of the tense situation in the industry to gain market share," confirms Dr. Spachtholz. "This is now helping with the recovery." In the Labels and Machines divisions, the decline in sales was even kept within the low single-digit range, despite the equally weak macroeconomic situation. "This shows that we are in a robust position and that we can still thrive with innovative solutions, even in markets hit by crises," emphasises Sven Schneller. "With our HERMA 2030 Strategy, we are consistently pursuing this defence of development strength and profitable expansion," explain both managing directors. In the next few years, production capacities in the Self-adhesive Materials division are to be expanded in a targeted manner and will also be further developed outside Europe in addition to the local markets. The Labels division is to create additional potential with innovative labelling solutions for industrial customers, as well as for office and private users with increasingly digital solutions. The Labelling Machines division plans to expand in North America and Asia, for example. At the same time, the fast-paced sustainability strategy should be an increasingly significant competitive advantage and growth driver throughout the company. "Anyone who can offer their customers the necessary solutions at an early stage and also produce them sustainably will be one of the contributing players," underline the HERMA managing directors. HERMA aims to achieve net zero emissions for climate-relevant gases by 2040.
