Another increase in turnover to €361 million / World market leadership in composite granite sinks expands / Top positioning in the German market for kitchen mixer taps once again strengthened / Investment remains focused on growth
One of the leading manufacturers of sinks and mixer taps worldwide, Blanco recorded consolidated net sales of €361 million in 2016. The company, which is based in southern Germany, consequently raised net income by 3%, compared to reported sales in the previous year, equivalent to a currency-adjusted 4.8%. At this year’s annual press conference, Achim Schreiber, CEO and Chairman of the Executive Board, pointed out that “We’re extremely pleased by how well business is going”. Thanks to Silgranit PuraDur, the company managed to expand its position as global leader in the area of sinks made from composite materials. Its mixer taps, which lifted Blanco into the position of a leading supplier on the international markets, also continued to be top sellers. The Group has been forerunner in the German market for more than 15 years and it managed to extend its significant lead even further.
One of the primary growth drivers was the German market, where Blanco gained share in all three business areas: sinks, mixer taps and waste disposal systems. Net income increased by 3.6% to €128 million. This does not include the negative impact of minus 0.7% from the German Accounting Directive Implementation Act (Bilanzrichtlinie-Umsetzungsgesetz or BilRUG). Blanco also grew well in the international markets, in some regions like Asia reaching double digits, and generated turnover totalling €233 million, equal to an increase of 2.7% (5.4% currency-adjusted). In 2016 around 65% of total sales were generated abroad. Employee headcount rose slightly worldwide to 1,420 employees, of which 1,050 work at locations in Germany. “All of you deserve our express thanks, because your commitment was a part of what made our company succeed,” Schreiber said in praise of the employees.
After completion of the plans to expand the European logistics centre in Bruchsal, total investment of €16.2 million returned to the level of the previous years. Part of it was channelled into ongoing efforts to swap old facilities and energy engineering in the plants with new, more sustainable equipment. The production processes in the Sulzfeld plant were also reorganised and a large part of the investment went into expanding the Silgranit sink plants in Sinsheim, Germany, and Toronto, Canada. Given that the potential capacities in Sinsheim have been all but exhausted and there’s no more room to expand production there, Blanco will construct another production site in the Czech Republic for about €25 million. “This will allow us better to meet customers’ wishes in future, particularly in the international markets,” explains Wolfgang Schneider, CTO. “The plant in Sinsheim was established 25 years ago and has grown steadily ever since. Naturally, it will remain our primary plant for Silgranit production and be expanded further”. The Competence Centre in Sinsheim is also the base of our research and development, where a number of employees will continue to lay the groundwork for innovative sink solutions in future.
Blanco also got off to a strong start in the current financial year. The company once more proved that it is more than an innovative specialist for premium sinks, mixer taps, waste disposal systems and exquisite, custom-built stainless steel products at the international kitchen fair “LivingKitchen” in January. “The overwhelming resonance from our trading partners and the enthusiasm of consumers during the days open to the public prove to us that our product concepts continue to blaze trails,” adds Schreiber. In addition, consumer spending appears to remain buoyant in Germany – many people have a new, comfortably equipped kitchen on their wish list, particularly since low interest rates continue to favour long-term purchases for high-quality homes, states Schreiber.
Developments on the international markets are quite varied, while global competition is increasing overall. Thanks to exceptional service and a product portfolio featuring high quality, aesthetic design and sophisticated functions, tailored to customer needs in each price segment, however, the company is well positioned to overcome these future challenges in the global market. In the words of Achim Schreiber: “In line with our strategy, we continue striving to broaden our international growth with great vigour”.
BLANCO is based in Oberderdingen in the German state of Baden-Württemberg, and is a leading manufacturer of high-quality sinks and mixer taps. According to the latest Heinze-Sanitär Panel, Germany's biggest sink manufacturer is also the German market leader for mixer taps. Its range also includes waste disposal systems and accessories all around the sink. The company manufactures its sinks in all three materials, stainless steel, Silgranit and ceramic, itself.
The Blanco Group employs a total of 1,420 people, 1,050 of them in Germany. The group includes numerous subsidiaries both at home and abroad, and especially in Europe, North America and Asia. In 2016 Blanco achieved a consolidated annual turnover of €361 million. The company manufactures predominantly at its sites in Sulzfeld and Sinsheim, close to where it is based, as well as in Toronto and Istanbul. Its European logistics centre is in Bruchsal.
Like its sister company Blanco Professional, the company – which was founded in 1925 by Heinrich Blanc – is now part of the Blanc and Fischer Family Holding, which has a controlling interest. The family-run company promotes a culture based on values and has received numerous awards as an employer.