HERMA continues its unswerving growth, again generating record sales in the 2016 fiscal year. The self-adhesive technology specialists pushed up revenues by 5.6 percent in 2016 to reach a total of 321.5 million euros after a posting of 304.5 million euros a year ago. When presenting the figures, managing directors Sven Schneller and Dr. Thomas Baumgärtner agreed that the projected targets had overall been met. The outcome was all the more satisfying, they said, because it enabled the company to weather the Brexit decision, and completely absorb the associated sharp decline in the value of the pound. The United Kingdom is traditionally a significant market for HERMA's Self-adhesive Materials and Labelling Machines divisions in particular. One of the factors that allowed the company to withstand the downturns triggered by the fall in both the exchange rate and demand was strong growth at home. Sales in Germany totalled 127.2 million euros, which represents a substantial year-on-year increase of 6.7 percent. Aggregate foreign revenues advanced as well, increasing 4.9 percent to 194.3 million euros. The 2016 export ratio was around 60.4 percent – marginally lower than the 60.9 percent recorded in 2015. The number of employees edged up from 945 to 966. Alongside the record figures, the managing directors stressed the importance of the company's sustained organic growth in all divisions, which enabled it to post a result that was on a par with the previous year's. HERMA is targeting a sales increase of around three percent in 2017, which is expected to be fuelled by growth in Germany and the Eurozone in particular.
Construction work on schedule for autumn 2017 According to the managing directors, developments in 2017 are certain to be shaped by the building works on the company's new 80,000 square-metre site in Filderstadt, Germany. On a site directly opposite their existing headquarters, HERMA is investing around 100 million euros for the current and next financial year. The investment is being channelled into a further complete coating plant for adhesive materials, and a new labelling machine plant. The two directors reported that the demolition work required for the new facility has been more or less completed. They stated that the building permit is expected to be granted very soon. Construction is scheduled to start in the autumn. Sven Schneller and Dr. Thomas Baumgärtner affirmed that the project remained well within its timetable.
Record sales in all three divisions The Self-adhesive Materials division in particular, which has been expanding especially vigorously for many years, will begin to benefit from the new capacities from 2019 onwards. Despite considerable setbacks arising from the Brexit referendum, its highly efficient manufacturing technologies and innovative products enabled it to grow more strongly than the market as a whole once again. Its revenues climbed to 192.8 million euros, marking an increase of 5.2 percent. The Labels division, which operates in a very mature market and product sector, raised its turnover as well, by 2.8 percent to a total of 81.6 million euros. Impetus was generated primarily by products for the school and office segments, and by rising demand for logistics labels. In both cases, the growth could be particularly attributed to a sustained stronger focus on international activities. The Labelling Machines division increased the number of applicators shipped from 3,000 to an unprecedented figure of around 3,400. Here again, however, the sterling exchange rate restricted revenue growth to 2.2 percent. The division's turnover of 42.8 million euros nonetheless represents a new record.
