Blum records impressive turnover at year-end
Published on :Tuesday, July 27, 2021
The family-owned business based in Hoechst, Austria has posted 2,376.75 million euros in Group turnover for the 2020/2021 financial year ended June 30, 2021. This is a growth in turnover of 470 million euros on the previous year. The fittings specialist was able to achieve these positive results due to the strong demand for top quality kitchens and furniture from consumers wanting to spruce up their homes. However, shortages in raw materials, especially in steel, have put severe pressure on supply chains.
The Blum Group recorded a total of 2,376.75 million euros in turnover from July 1, 2020 to June 30, 2021. This marked growth is an increase of 24.7% or 470 million euros on the previous year. The unforeseeable surge in demand for furniture caused by the COVID-19 pandemic has led to an above-average increase in turnover for the fittings manufacturer from Vorarlberg. “The crisis has prompted people all over the world to attach more importance to their homes. At the same time there has been a shift in private consumption – away from traditional leisure time activities to investments in home improvements, for example in kitchens and furniture,” says Philipp Blum, Managing Director of Blum, explaining the development.
Development of international markets
Although furniture stores had to close their doors for long periods of time during the lockdowns, the demand for furniture and interior refurbishments increased dramatically all over the world. Western Europe recorded strong growth, particularly in Italy, France, the UK and Germany. Major increases were also posted in Eastern Europe, for example in Poland, Russia, the Czech Republic and Turkey. Business also went well in North America. Sales figures also rose in Asia and Oceania, with China again contributing significantly to the business results. Furthermore, the last year proved a positive one for Blum in Africa, South America and the Near and Middle East.
“We still achieve most of our turnover, that is to say 44%, in our domestic market, the European Union,” comments Philipp Blum. With a share of 13%, the USA is the company’s largest single market; other markets worldwide account for 43% of total turnover.
Employees are key success factor
“We’re delighted with the demand for kitchens, furniture and consequently Blum products but it poses extreme challenges, especially in the field of production,” points out Managing Director Martin Blum. The reliable and timely supply of its products to customers is top priority for the long-established company from Vorarlberg. “We owe our thanks to our employees. It’s thanks to their commitment and flexibility that we’ve been able to deal with this extraordinary year,” underlines Martin Blum.
Ongoing investments in Vorarlberg and organisations worldwide
Despite the challenging times, Blum consistently invests in the expansion of buildings, machinery and facilities. “It was thanks to long-term planning that we were able to respond as well as possible to the unexpectedly strong growth in demand,” says Martin Blum. The extension to Plant 4 in Bregenz will be put into operation in summer. Construction work has already started on the expansion to production facilities and a high bay warehouse at Plant 6 in Gaissau. The project should be completed by mid-2023. “This clearly shows our long-term commitment to production plants in Vorarlberg,” comments Martin Blum.
“The market is undergoing rapid growth. We decided to set up production facilities on site to meet the demand of the Chinese market. It will give us greater flexibility, we’ll be closer to our customers and it’ll reduce transportation distances,” explains the Managing Director.
“We hope that the high vaccination rate will avert the need for further lockdowns,” says Philipp Blum. But one thing is certain for Philipp Blum: “We’ve benefited from the experiences that we as a company have gained over the last one-and-a-half years. Digital technologies offer many opportunities, but they’ve also shown us that you cannot replace face-to-face conversations and an exchange of ideas.”
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