DORMA financial results boosted by growth program

Fiscal 2011/12 sees sales move above 1 billion € for the first time – with the sequence of success expected to continue

DORMA financial results boosted by growth program

For the first time in its corporate history, the DORMA Group generated revenues in excess of 1 billion € in fiscal 2011/12 (June 30), thus improving on the record sales figure of the previous financial year. Consolidated net sales rose by 6.1% to €1,001.8 million (previous year: €944 million). After adjustments for acquisitions and foreign exchange, sales increased by 4.9%. Earnings before tax (EBT) rose by €20 million to €76.6 million during the reporting period. And the number of employees rose to an average of 6,738 (+2.9%) for the 2011/2012 fiscal year.

“This first step beyond the billion euro sales mark shows the extent to which our ‘DORMA 2020’ growth program, initiated at the end of 2010, has successfully progressed,” said DORMA CEO Thomas P. Wagner at the press conference held in Ennepetal. And indeed, DORMA has posted revenue increases in almost all of its markets and virtually all of its product groups.

The company’s goal with “DORMA 2020” is to double global sales to two billion euros by the year 2020. Over the same period, the number of employees is also expected to rise to around 10,000. DORMA is thus planning to significantly expand on an international scale, with its worldwide presence being extended to 80 countries by 2020. At the moment, the company operates in 51 countries.

Growth in almost all regions

The DORMA Group was able to increase revenues in almost all its sales regions in the course of its financial year. The biggest sales increases occurred in the regions Asia-Pacific/Australia (+14.1%), the Americas (+6.1%) and North & East Europe (+6.0%). In its domestic German market, DORMA generated an increase in revenues of 4.4%. The Mediterranean/Middle-East/Africa region posted a slight decrease in sales (–0.2%), due primarily to the economic situation in Spain, Italy, Portugal and Greece.

At €22.4 million, capital expenditures in fiscal 2011/12 were virtually unchanged compared to the previous year (€22.9 million). The funds were used primarily for the optimization of production facilities and the ongoing development of business in the emerging markets. Operating cash flow increased substantially to €117.6 million (previous year: €93.3 million), while the equity ratio rose to 59.4% (previous year: 55.0%). “This provides DORMA with a solid foundation for its dynamic further development,” said Wagner.

Expanding DORMA’s international base

Again in the reporting period, expansion of the company’s international presence in strategically important markets and the development of new sales segments and territories were among the key factors contributing to DORMA’s success. Aside from the establishment of joint ventures, e.g. in Israel and China, the company also opened new subsidiaries in Africa and the Arab region. DORMA also acquired companies in the USA, Australia and South Korea as a means to strengthening its market position. The reorganization of the DORMA Group into five international sales regions – its “Areas” – enables the company to respond with even greater flexibility to specific characteristics and volatilities in individual national markets and geographies. And DORMA sees particular growth potential for its business in the emerging markets.

Customer dedication as a strategic factor for success

DORMA is focusing specifically on customer dedication as a key contributor to expanding its position as a trusted partner for premium access solutions and services enabling better buildings. “We specifically align our products and services to the wishes and requirements of our customers,” states Thomas P. Wagner. “This encourages us to constantly develop innovative technologies and access solutions while further enhancing the global competitiveness of our products and services. The company is backing up its positioning claim with a new branding strategy that defines Hassle-free and Holistic as key attributes of the DORMA brand and focuses on Design & Aesthetics as essential product characteristics.

Outlook: Increasing revenues and further investment

Despite the macroeconomic uncertainties prevailing in most markets, DORMA is targeting growth in organic sales of 2 to 3% in fiscal 2012/13. The company will continue to systematically pursue the DORMA 2020 growth strategy and further expand its global presence with new sites, subsidiaries, affiliates and acquisitions. DORMA also aims to further increase its investment in the fields of research and development, marketing and human resources, in order to promote the successful long-term development of the corporate group.

back »
Picture download