Successful 2019 financial year for Thimm

The Thimm Group closed the 2019 financial year with sales of 623 million euros. Investments totalling 34 million euros were made in product diversification, individual locations and production technologies in order to support the further growth of the Thimm Group.

The Operating result EBITDAR rose by 20 per cent from 46.7 million euros to 56.1 million euros. The Number of employees increased from 3,262 in the previous year to a total of 3,512 employees as at 31 December 2019, including 121 trainees. Due to lower sales prices, the Thimm Group recorded a decline in sales in the past financial year. a slight decline in sales of around three per cent to 623 million euros (2018: 645 million euros).

„We were able to further increase our sales last year. However, as we pass on reduced prices for corrugated base paper, our most important raw materials, to our customers, sales fell slightly. In addition, there was a decline in sales of industrial goods packaging due to developments in the automotive industry. Our operating result EBITDAR increased significantly by 20 per cent to 56.1 million euros.“
Mathias Schliep, Chairman of the Management Board of the Thimm Group

The Equity ratio of the Thimm Group 41.0 per cent at the end of the 2019 financial year, up on the previous year's figure (37.5 per cent) and thus further at a high level. In addition to the Volume growth at the packaging plants in Poland and Romania has also completed the 2017 Corrugated board plant in Wolnzach, Bavaria achieved significant volume growth in 2019 and thus made a decisive contribution to the increase in earnings. Schliep: „The cost situation for the entire industry remains challenging due to the strong regional Increases in personnel, logistics and energy costs but still challenging.“

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Three further locations

In the past financial year, the Thimm Group was able to expand its market presence by three additional locations. In the fourth quarter, the Thimm Packaging Systems division acquired the provider of foam solutions and technical moulded parts ISL Schaumstoff-Technik GmbH in Viernheim in southern Hesse and the business operations of the ISL Verpackungstechnik GmbH in Serba, Thuringia.

„The integration of ISL into the Thimm Group is an important step in our international diversification strategy. Not only are we expanding our portfolio in the field of reusable multi-material packaging and further strengthening our position as a provider of sustainable packaging solutions, but we are also gaining two high-performance locations in Germany,“ says Mathias Schliep.

In addition, the Polish joint venture TOP Packaging, which belongs to the Thimm Group, took over the local supplier of corrugated packaging on 1 October 2019 United Packaging SA in Skarbimierz near Wroclaw (Breslau). „The expansion of our presence in the western part of Poland resulting from this acquisition enables us to supply our Polish and international customers even better and strengthens the Group-wide cooperation between our locations in Poland, the Czech Republic and Germany,“ says Schliep.

Thimm also invested in the Production plant in Sibiu, Romania. The centrepiece of the expansion was the installation of a new, state-of-the-art corrugator. The machine was commissioned in mid-April 2019 and triples the capacity for the production of corrugated board. The company-wide modernisation of the technical infrastructure was another focus of investment. In total, the Investment volume for the expansion of existing locations and production technologies as well as product diversification and expansion 34 million euros.

„The spread of the coronavirus pandemic to Europe and Germany at the beginning of the year has significantly changed the economic conditions on which our planning for 2020 was based. A significant global economic slump is expected in the second quarter of 2020. The The effects of the pandemic on the Thimm Group are very different. We are currently seeing an increase in demand for packaging for everyday consumer goods, whereas demand for packaging for the automotive industry and the industrial goods sector has fallen, in some cases significantly. Overall, this crisis shows how important packaging is for maintaining the supply chain and the supply of food, pharmaceutical and medical technology products. Packaging is an integral part of securing supplies for the population.“
Mathias Schliep

Optimistic outlook

Despite the spread of the coronavirus pandemic to Europe during the first quarter, the Thimm Group got off to a good start in 2020. „Despite this extreme situation, we continue to expect sales growth“, says Schliep. „However, this depends largely on the further course of the coronavirus pandemic and the associated restrictions. We are currently cautiously optimistic based on the current order situation.“ From today's perspective, the new locations added to the Group at the end of 2019 will also make a significant contribution to further development. In the business division Thimm pack'n'display an increase in the sales volume All production sites - but especially the plants in the growing markets of Eastern Europe - are expected to contribute to this growth.

„We believe we are well positioned with innovative, sustainable packaging solutions, which are increasingly in demand from the food industry in particular. Corrugated board packaging is part of a product cycle that makes an important contribution to efficient supply chain logistics, both economically and ecologically. Furthermore The e-commerce segment is also currently developing well to very good. Our focus in the Thimm Packaging Systems division in 2020 will be on the Integration of the newly acquired locations, in the Christiansen Print division, we will further expand digital printing. Despite the coronavirus crisis, we will continue to invest in the further development of our company in 2020 and invest in the future of each individual production site, in some cases significantly, in order to modernise our locations and further expand capacities.“
Mathias Schliep

[infotext icon]The Thimm Group is a leading solution provider for the packaging and distribution of goods. The solution portfolio includes transport and sales packaging made of corrugated cardboard, high-quality sales displays, packaging systems made of various material combinations and printed products for industrial processing. A wide range of packaging-related services along the supply chain complements the product range. Its customers include well-known branded goods groups from all sectors. Founded in 1949, the family-owned company currently employs more than 3,500 people at 22 locations in Germany, the Czech Republic, Romania, Poland, France and Mexico and generated an annual turnover of around 623 million euros in 2019.

Source: Thimm