Kremsmünster, May 3, 2017 – The Greiner Group improved its consolidated sales revenues by 2.4 percent compared to the previous year to reach EUR 1.475 billion in the financial year 2016 (prev. yr.: EUR 1.441 billion). “The consistent implementation of the globalization strategy, the bundling of core competencies and the strengthening of innovative capacity in all divisions contributes decisively to the successful development,” says Chairman of the Board Axel Kühner. The cash flow could be increased to EUR 148 million (prev. yr.: EUR 132 million), which is an improvement of 12 percent compared to the previous year. All investments in the amount of EUR 101 million were financed from the cash flow (prev. yr.: EUR 94 million; +7 percent). The Greiner Group has invested worldwide in the expansion of its operating sites and the modernization of plants and machinery. “Profit-oriented growth continues to remain in the focus. The bandwidth of our portfolio lends us stability for the long-term development of our Group,” explains Hannes Moser, CFO of the Greiner Group. In the financial year 2016, the number of employees working at 134 sites around the world rose to 9,722 (prev. yr.: 9,299; +423 employees).
Globalization continues
Europe, accounting for rounded 75 percent of sales, is the Greiner Group’s core market, followed by North America and Asia with 10 percent each. “Tapping new markets remains a central topic. Besides the USA, we are focused on the BRICS states, as these markets will record a stronger growth than Europe in the medium to long term,” explains Kühner. In 2016, Greiner Packaging founded a joint venture with a packaging company in India. The company thereby positioned itself on the Indian market with food packaging that is used in the dairy industry. The expansion of the Greiner Bio-One production site in Brazil was completed as planned in the fall of 2016. Greiner Bio-One integrated sales and distribution for Italy into its own organization by taking over a distribution partner of many years. In addition, the company founded its own sales office in Turkey. To also be able in the future to process orders from large automobile manufacturers that are to be satisfied on a global level, Greiner Foam International founded joint ventures in China and Mexico in 2016.
“Plastics for Life” for the responsible handling of plastics
The Greiner Group actively lives up to its responsibility as a plastics processor. Under the title “Plastics for Life”, a Group-wide sustainability process was implemented. “Plastics make our daily lives simpler in many areas. But we also know that our products can contribute to environmental pollution if they are not disposed of correctly. We therefore want to raise awareness for the best possible handling of plastics,” Axel Kühner, Chairman of the Management Board of Greiner Group, explains. “Innovation is an important lever for sustainability. We see great potential in innovative and sustainable product solutions that deliver an added value for our customers,” CFO Hannes Moser adds. Plastics should be used anywhere where the material offers advantages over other materials, for example, by saving CO2 because of its low weight during transport. Likewise, plastic waste as a resource for manufacturing new products is a central topic in the context of the company’s sustainable orientation.
Outlook 2017
“In spite of difficult framework conditions, we had a good start into the financial year 2017. Especially in the foam division, we are confronted with disproportionally high raw materials prices. In light of this, we expect modest growth for 2017,” says Moser. The successfully adopted globalization strategy will also be continued in the current financial year – both by means of intense working of existing markets as well as by tapping new markets.
On or about May 5, 2017, Greiner Bio-One takes over 67.75 percent of shares of Vigmed Holding AB, a development and trade company for safety IV catheters located in Helsingborg, Sweden. For the first time in company history, Greiner Group takes over shares of a listed company. “Through the majority shareholding in Vigmed, Greiner Bio-One is expanding its product portfolio with IV catheters. The already existing, strong distribution network of Greiner Bio-One is to be utilized for being successful in the market with the product,” explains Chairman of the Board, Axel Kühner.
In the first quarter of 2017, 70 percent of the shares in Plastic System, a Russian packaging specialist with operating site in Noginsk, near Moscow, was taken over by Greiner Packaging. Greiner Packaging thus continues to expand its market share in Russia and its product portfolio. Additionally, Greiner aerospace is expanding its competency with the acquisition of CarTrim, a German specialist for cabin components of aircraft. “The integration of the new acquisitions, the expansion to new markets and the continuous implementation of the sustainability strategy in operations will keep us very busy in the current financial year,” says Kühner.
The Greiner Group furthermore invests strongly in the Upper Austrian site. The groundbreaking for the expansion of the headquarters in Kremsmünster will take place in the fall of 2017. Overall EUR 16 million will be invested in the construction. Besides a new trainee center, office areas, open work spaces and the site’s own employee bistro will be built on the modern Greiner Campus. Its completion is planned for early 2019.
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About the Greiner Group
The Greiner Group with headquarters in Kremsmünster, with its four operative business units (Greiner Packaging International GmbH, Greiner Bio-One International GmbH, Greiner Foam International GmbH, Greiner Extrusion Group GmbH) is among the leading foam producers and plastics processors for the packaging, furniture, sports and automotive industry, as well as for medical technology, the pharmaceuticals sector and the leading manufacturers of extrusion tools and machines for plant engineering. The Greiner Group earned sales revenues of EUR 1.475 billion in the financial year 2016 and employed more than 9,700 people at 134 operating sites in 30 countries. The Chairman of the Management Board of the Greiner Group is (DH) Axel Kühner (MBA), the CFO is Mag. Hannes Moser. www.greiner.at