Price pressure impacts 2011 results – company accelerates efforts to pursue strategic plans

Berlin, 29 March 2012. Sales revenues at Herlitz Group declined slightly in 2011: at the end of the last financial year, this figure came to EUR 228.9 million, down 2.1% on 2010’s sales revenues.
The most significant reduction in sales was recorded in the Private Label segment and affected products from our folder, paper and mailing items lines as sold by discounters and retail market.
In contrast, product groups that are strongly differentiated from similar goods have seen positive growth, strengthening the share of brand products in our company’s overall sales. These products include schoolbags, my.pen writing implements and the easy orga range of filing materials.

Overcapacities at manufacturers, aggressive cutthroat competition and the associated
struggles over pricing have prevented us from passing increases in procurement costs on to customers.

Overall, these market developments and our one-off costs for vital HR measures have impacted on the company’s results and led to a negative EBIT of EUR -7 million.

In view of these results from the last financial year, we will shortly implement structural changes and launch extensive marketing and sales activities within the group. Our strategic cooperation with Pelikan will play a key role in these developments.