Austrian kitchen fittings giant Blum has revealed a steep decline in sales over the past financial year and although it was expecting it, it said the speed of the downturn took it by surprise.
Speaking at its annual press conference, joint MDs Philipp and Martin Blum announced that the company closed the 2022/23 financial year with a turnover of €2.32 billion (£1.98bn), down by 12% or €317 million on the previous year.
The decline in sales figures was attributed to the generally unsettled nature of the European market. It blamed a combination of consumer uncertainty caused by the cost-of-living crisis, a lack of consumer demand driven by the previous high levels of sales, the increased cost of raw materials and the freeze on supply to Russia.
Blum reported that outside of Europe, sales figures were more optimistic. Sales development within the Asia-Pacific region was reportedly stable, and sales were also increasing in the United States. Blum said the US was its largest single market, representing 15% of total sales worldwide.
Commenting on the figures: Philipp Blum said: “After enjoying a strong tailwind for more than two years, with increases in turnover and demand, we are now facing a sharp headwind. After two years of disproportionate growth, the decline in sales is an understandable development. A downturn was to be expected, but the speed was surprising for us. Even if we have to adapt to this challenging situation, we are sticking to our basic strategy.”
Elaborating on its strategy going forwards, Blum said that he expected difficult market conditions to continue for the foreseeable future. “We still need more staying power until consumer confidence and thus the markets stabilise again. The long-term orientation as well as committed and flexible employees are our strong basis for being a reliable partner for our customers every day. We would like to express our gratitude and appreciation to our global team.”