Sales revenues of Herlitz Group decreased by EUR 25.5 million year on year to EUR 233.8 million. This drop was primarily the result of structural effects, mainly the reduction of the soft plastic portfolio. In addition, the Group deliberately refrained from conducting low-margin business in the papeterie field. The negative development of the B2B market also led to sales revenues losses.
The efforts with regards to the implemented brand strategy for Herlitz products with differentiating characteristics had a positive effect on sales revenues; this increased the percentage of brand products in the Group, the main item being Herlitz my.pen, which is one of the most-sold school fountain pens in Germany.
Sales revenues of the international subsidiaries also stabilized after the economic and financial crisis. The measures launched for optimising portfolios and costs had a positive effect.
Further cost savings helped compensate to a large extent for the loss of gross profits created by the drop in sales revenues.
Overall, the annual net loss amounted to EUR -4.0 million.
The financial position of the Company continued improving during the financial year and the Group still had a debt-free balance sheet as of the reporting date.
Herlitz Group will continue focusing on the implementation of measures for improving performance and saving costs so as to improve its profit position in the long term.
Herlitz Group key figures:
| In EUR mil. | 2010 | 2009 |
|---|---|---|
| Sales revenues | 233,8 | 259,3 |
| Earnings before interest and taxes | -1.9 | 2.9 |
| Earnings before taxes | -3.6 | 0.7 |
| Group net deficit | -4.0 | -1.3 |
| Total assets | 90.5 | 96.6 |
| Equity | 34.0 | 37.7 |
| Equity ratio | 38% | 39% |
| Employees (annual average) | 1,702 | 1,898 |
