Family-owned Austrian business Blum has recorded €2,324.59million turnover for the 2022/2023 financial year ended 30th June 2023. The company said that this corresponds to a drop in turnover of reduction of €317million, or -12%, compared with the previous year. Following a period of above-average growth, it added that this was a 'foreseeable development' that had been expected by co-managing directors Martin and Philipp Blum, and that the fittings specialist will continue to focus on innovations, investments and its employees.
Philipp Blum said: "After a period of high investment in home improvement, we have been observing a turning of the tide since autumn 2022. High levels of inflation, rocketing prices and the global energy crisis have generated a feeling of immense uncertainty among end users. This translates into restrained purchasing behaviour."
In addition to the challenging market environment, the cost of raw materials, energy and human resources remains high. China's strict Covid policy lasting almost a year and the cessation of deliveries to Russia have also slowed down business. This is also reflected in the figures for the Austrian family-owned company. "After two years of above-average growth, the drop in turnover is a foreseeable development. We were expecting a downturn, however the speed at which it happened was surprising for us. Although we need to adapt to this challenging situation, we are sticking to our basic strategy," said Philipp Blum. "Our longstanding corporate philosophy and values will remain our compass; we will continue to focus on close customer relations, innovation and the further development of our 9,330 employees across the globe," added Martin Blum.
Blum is continuing to make large investments in its premises in Vorarlberg and around the world. The total volume in the past 2022/2023 financial year amounted to €390million, €255million of which was spent in Vorarlberg. Over the next few years, 52,000sq m of production and storage space will be created at the main site in Vorarlberg. Blum will complete Plant 6 in Gaissau this summer, 2023. The extensions to Plant 2 in Hoechst and Plant 4 in Bregenz are also underway and said to be 'coming along nicely'.
"Our long-term orientation and committed and flexible employees are our strength and what make us a reliable partner for our customers on a daily basis. Our thanks and appreciation go to our global team that stands strong despite daily challenges," concluded Martin Blum.
Pictured: co-MDs Philipp Blum, left, and Martin Blum, right.