"Prepared for further imponderables"
"The focus on our core competencies of pressure-sensitive materials, labels and labelling machines, the continued concentration on sustainable growth, the pronounced commitment and flexibility of our employees and, last but not least, the investments made in recent years in new production facilities have helped us to successfully stay on course during these turbulent times," emphasise managing directors Sven Schneller and Dr Guido Spachtholz. "We have proven that HERMA can maintain its position in the market even under adverse circumstances and even expand it in some areas. This means HERMA is also prepared for further imponderables."
Mixed feelingsAgainst this background, Sven Schneller and Dr Guido Spachtholz view the development of the HERMA Group's sales, which rose from €380.8M to €428.4M in 2021, with mixed feelings: "The increase in sales of 12.5 percent is largely the result of an increase in sales volumes, but is also partly the consequence of significantly higher raw material costs, for example for paper, and therefore unavoidable sales price increases in the areas of adhesive materials and labels. The difficult procurement situation had a negative impact on the development of the result, which nevertheless increased. We are proud of the fact that, despite this difficult materials situation, HERMA has by and large succeeded in remaining able to deliver." The number of employees rose slightly in the past fiscal year, to 1124 at the end of the year (previous year: 1106). The export ratio remained almost stable at 62.5 percent compared to 62.8 percent in the previous year.
Due to further catch-up effects as the corona pandemic subsides, demand is likely to remain stable for the time being, forecast the two HERMA managing directors. But the general conditions for 2022 would not be any easier: "We cannot yet fully assess the consequences of the war against Ukraine for HERMA at the moment. Among other things, the supply situation for paper remains challenging due to a strike in central paper mills in Finland, which has now lasted several months; we hope that the situation will return to normal in May, or at the latest in June. Energy prices are also likely to increase significantly once again and then remain at a high level." For the current business year, Schneller and Dr Spachtholz are therefore planning for an inflation-driven increase in turnover in the high single-digit range.