Blum sees end of year sales boost, despite uncertainty

Furniture fittings manufacturer Blum has reported a 6.5% increase in revenue compared with the previous year.

For the financial year 2015/16, which ended June 30, Blum reported revenues of €1.65 billion. It attributes this increase to its “innovative products, its international market presence and consistent investments”.

The company revealed that 50% of its sales were generated in Europe, with 15% from the US and 35% from other markets.

It also saw market growth in the Asia-Pacific region, the Middle East and Africa.

However, in Russia and Turkey it reported a dramatic decrease in revenue due to economic sanctions and political instability.

Blum increased its employee base by 334, taking the global total to 6,849. From September 2016, 80 new apprentices will start their training at Blum Austria, taking the total number to 306.

In the last year, the group has invested €173.6m in new manufacturing buildings, warehouses and plants worldwide, €120.6m of which was in Vorarlberg, Austria.

“The high level of motivation of our worldwide team and the excellent cooperation of all departments and organisations within our group are an essential building block of our success,” says chief executive Gerhard E. Blum.

Although the group said it is difficult to assess the upcoming financial year, it said it remains optimistic that the company will have positive results.

“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,” a statement said. “Blum hopes that the economic situation in North America and the Asia-Pacific market will remain stable. In South America, particularly in Brazil, there are few indications of economic recovery. However, Blum remains convinced that its 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.”

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