Thimm Group continues its solid expansion with a significant increase in earnings: Strong growth in all sections
20 May 2015
20 May 2015
Thimm Group continues its solid expansion with a significant increase in earnings: Strong growth in all sections
Thimm Group from Northeim achieved significant growth in the last financial year coupled with over-proportionate earnings growth. In 2014 the company increased its revenues from EUR 456 million to EUR 533 million, equivalent to growth of 16.9 percent. Operating profit (EBITDAR) rose by around 35 percent to EUR 56.0 million (2013: EUR 41.5 million). For the fifth consecutive year the company invested heavily, this year at an amount of EUR 24.4 million. Despite high investments the equity ratio of 44.7 percent remained at the good level of the previous year (2013: 46.3 percent). As of 31 December 2014 Thimm employed 2,827 people at 17 locations, an increase of 361 employees over the previous year. In Germany the company trained 122 apprentices (2013: 117) in the dual education system.
According to Jens Fokuhl, Managing Director Thimm Group: "In 2014 our development was significantly more positive than in the market overall. We owe this success to our strong business divisions". Revenues at the Thimm Verpackung division increased by 8.1 percent. The corrugated cardboard plants in Central and Eastern Europe in particular have seen very positive developments. The strongest growth of 28 percent was recorded in the division Thimm Schertler Verpackungssysteme (since 01.04.15 Thimm Packaging Systems) with its multi-material packaging solutions. Contributing to this were the two new locations opened in 2013 whose capacity has been utilised faster than expected. The Thimm Display division also achieved above-average sales growth of 24.5 percent. "We are very proud of this result which is testament to the creativity and motivation of our employees" continues Fokuhl.
Investment Program continues
At EUR 24.4 million in 2014 the high level of company investment continued. Significant investment areas in the reporting year were the scheduled expansion and further modernisation of the corrugated cardboard and display plants in Europe and the production locations for multi-material packaging systems. Product development has also been strengthened with the establishment of a laboratory and development centre in Nordhausen (Germany). Further resources were used to acquire a corrugated cardboard factory in Bavaria (Germany).
Increase of 361 employees
As of 31 December 2014 Thimm Group had 2,827 employees across 17 locations, an increase of 361 over the previous year. In Germany the company trained 122 apprentices (previous year: 117) in the dual education system. This is corporate social responsibility that Thimm takes very seriously. The company has been training apprentices since the 1960s and continues to further develop its training programmes. Last year the apprenticeship ratio was 9 percent.
Outlook: Growth and internationalisation
For the ongoing financial year Thimm Group is planning growth slightly ahead of the market across all its business divisions. This expectation is based on the company's good start to the new financial year. Revenues in the first quarter were 3 percent higher than in the equivalent quarter last year.
In 2015 the company is planning investments in tangible fixed assets of over EUR 40 million, with the primary focus being the construction of a new corrugated cardboard plant in the Pfaffenhofen district (Germany) which will replace the factory in Unterschleißheim in the medium term. Construction is scheduled to start in mid-2015. On 24 April 2015 a new production location for containers and multi-material packaging solutions was commissioned in Germersheim (Germany). Also during this year a new factory will start production for this segment in Mexico - the first Thimm factory overseas. Further plans include the expansion of the Display factory in Wörrstadt (Germany).
Jens Fokuhl continues: "We believe that Thimm Group is very well positioned for the future. Important for the success of the company is the fact that we give our business divisions the requisite scope to develop their independent strategies and to cultivate their own respective market segments independently. At the same time group cohesion and the associated ensuing synergies are the basic building blocks for long-term survival in this complex and demanding packaging market. This will enable Thimm to continue as an independent family business and as a strong and reliable partner alongside our customers, employees and other business partners."
