AUSTRIA - Thanks to innovative products, an international market presence, consistent investments worldwide and highly flexible employees, the Blum Group has once again seen a revenue increase during the financial year 2015/2016, despite very different performances by the individual markets.
The family enterprise reports an increase of 6.5 % compared to the previous year. Julius Blum GmbH is a family-owned company that operates worldwide, specializing in the manufacture and distribution of furniture fittings. Its main product groups are lift, hinge and pull-out systems for furniture, predominantly in kitchens. The company has seven plants in Vorarlberg, Austria, production sites in Poland, Brazil and the USA and 28 subsidiaries and representative offices around the world. The company delivers to furniture manufacturers and authorized dealers in more than 120 countries.
With a revenue increase of 6.5 % to € 1,656.17 million, fittings manufacturer Blum concludes its financial year 2015/2016 that ended on 30 June. Innovative products, its international market presence and consistent investments all mean that the family enterprise headquartered in Höchst (Austria) can celebrate a solid increase in revenue. Of the company turnover 50% was generated within the EU and 15% in the US. In Western Europe, all markets developed in a positive manner for Blum in the financial year 2015/2016. In Eastern Europe, the fittings manufacturer is also pleased with the way business has developed in the EU member states. In Russia and in Turkey, on the other hand, revenue has decreased drastically due to economic sanctions and political instability. Business in North America continued to flourish, while the tense economic situation was felt very strongly in South America, particularly in Brazil. In the Asia-Pacific region, most markets continued to grow, and Blum also registered growth figures in the Middle East and in Africa.
"The high level of motivation of our worldwide team and the excellent cooperation of all departments and organizations within our group are an essential building block of our success", says CEO Gerhard E. Blum, summing up the fundamental importance that Blum attaches to its employees. During the past financial year, Blum had on average 6,849 employees worldwide.
During the past financial year, the Blum Group has invested a total of € 173.64 mill. At the Austrian site, a three-story manufacturing building and a fully automated high-bay warehouse at plant 4 in Bregenz will commence operation in September. An additional high-bay warehouse is currently under construction and is scheduled to be completed by spring 2017. Construction work for a new, 8th plant in Dornbirn has already commenced. The plan is for a stamping center with a high-bay and strip steel warehouse to be operational by summer 2018. In March 2016, Blum started to build an office and warehouse complex in Greece, scheduled for completion by the end of this year. A new central warehouse was opened in China, and projects to expand the high-bay warehouses in Australia and Poland are set to commence this autumn.
During the financial year of 2015/16, the company maintained its strategic focus on the development of new products and services. In line with the current design trend that focuses on kitchens and furniture pieces with handle-less fronts, Blum offers sophisticated solutions in all three product groups (lifts, hinges and pull-outs). This includes box systems and runner systems for wooden drawers, as well as lift and hinge systems. The new motion technology Tip-On Blumotion combines mechanical opening with gentle, quiet closing and was a feature in many of the show kitchens presented at this year's Milan Furniture Fair.
Regarding the outlook for the upcoming financial year 2016/2017 the company manifested uncertainty. “It is difficult to assess what the upcoming financial year has in store. The UK referendum result that is in favor of leaving the European Union has created large-scale insecurities with regard to the future of Europe, both from a political and an economic perspective. The problems arising from the sanctions imposed on Russia and the effects of the unstable political situation in Turkey will continue to make themselves felt”, stated the company on declarations to the press. And added, “Blum hopes that the economic situation in North America and the Asia-Pacific reason will remain stable. In South America, particularly in Brazil, there are few indications of economic recovery. However, Blum remains convinced that their family enterprise will be able to make a positive impact during the financial year 2016/2017, based on innovative products, international market presence and outstanding staff.”
