Grammer keeping well on track

Despite the decline in revenue, Grammer was able to significantly improve, even boost its profitability.  This can be attributed to the consistent implementation of the “Top 10” measures program during the reporting period. The goal of the program is to sustainably improve the Group’s competitiveness and profitability.

Operating earnings before interest and taxes (operating EBIT) rose to EUR 75.1 million (previous year: EUR 41.6 million). The operating EBIT margin increased accordingly to 4.1% (previous year: 2.2%). EBIT amounted to EUR 69.1 million (previous year: EUR 8.1 million).

Significant progress was achieved in particular through capacity adjustments in EMEA and AMERICAS, the implementation of the restructuring and future-oriented collective agreement at the German sites and the continued expansion of the Grammer Business Center in Niš (Serbia). Bundling administrative functions and streamlining processes made it possible to reduce administrative costs on a sustainable basis.

In addition, Grammer consistently focused on its core business in the AMERICAS region. As part of this effort, the company divested holdings outside its strategic core activities and wound up a US subsidiary.

Earnings before taxes totaled EUR 32.5 million (previous year: EUR –23.7 million), while earnings after taxes were EUR 23.5 million (previous year: EUR –48.0 million). Free cash flow from continuing operations improved significantly to EUR 39.1 million (previous year: EUR –18.9 million).

„We have proven our adaptability and have therefore decidedly paved the way for the future in a demanding market environment”, says Jens Öhlenschläger, CEO and Spokesman of the Executive Board. “The measures introduced take effect and create a viable foundation for sustainable growth. A key priority was the consistent continuation of the existing “Top 10” program, which has made a significant contribution to the company’s stabilization and further development—particularly through sustainably improved cost structures and increased operational efficiency. In addition, there was a clear focus on streamlining reporting lines and slimming down the organization. This made it possible to shorten decision-making processes and further increase transparency within the company. In view of the upcoming financial year, we remain vigilant and consequently pursue strategic initiatives, to be capable of reacting flexibly to market changes in the future. Despite continued limited demand in important markets, Grammer is clearly more robustly positioned today than it was a year ago.”