Greiner Group continues its successful course
Kremsmünster, May 3, 2016: During the 2015 fiscal year, the Greiner Group increased group revenue by 9 percent over the previous year, to 1.4 billion euros (FY 2014: 1.3 billion euros). “Consistently following our stated 2020 objectives and focusing on our core business were crucial factors in achieving another very good business year”, says CEO Axel Kühner. Cash flow rose by 17 percent over the previous year, to 132 million euros (FY 2014: 113 million euros). All investments, totaling 94 million euros, were funded from the cash flow (FY 2014: 81 million euros, +16 percent). The Greiner Group invested worldwide, particularly in updating plants and machinery and expanding locations. “The Greiner Group's strong profitability is a result of the measures we have consistently implemented since 2011. They focus on ensuring the Group's stability and independence over the long term”, explains Hannes Moser, CFO of Greiner Holding AG. During 2015, the number of employees rose to 9,109 (+658 over FY 2014), working at 134 locations around the world.
Further investments secure Austria as a business location
The Greiner Group is committed to maintaining a corporate presence in Austria. Continued expansion in new countries opens up new markets, in turn strengthening Austria as a business location. The framework conditions for innovation management and development in Austria remain good. “In 2015, we directed more than 37 million euros – 39 percent of overall investment volume – to Upper Austria, which both secured and created jobs”, says Moser.
Transformation from a group of companies into a corporate group
Processes across the Group must be standardized and applied at all locations if the 2020 objectives are to be achieved. For this reason, a Group strategy has been developed, with its implementation having begun in 2015. “The Group strategy involves closer cooperation between the operative sectors and their key departments, including development, procurement, accounting and IT. This will result in efficiency increases and a greater power to innovate across the Group”, explains Kühner. A key factor in advancing the Greiner Group further lies in implementing a unified IT infrastructure. This was a focus of work in 2015. “A unified IT infrastructure creates simplified communication channels, global standards and transparency”, adds Moser. In its innovation process the Greiner Group is treading new paths, using a variety of tools offered by the start-up scene. For example, all employees around the world are invited to submit their ideas to a specially designed online platform where they are then commented on and evaluated by all those taking part.
Expansion for continued growth
Europe is the Greiner Group's core market, generating more than 80 percent of revenue. North America, at 10 percent, is the second largest market, and Asia the third largest, at 8 percent of revenue. “Expansion into new markets, both in Europe and on other continents, is a key aspect of developing the Greiner Group further”, explains Kühner. In 2015, Greiner Packaging acquired a majority stake in a Turkish packaging company. Consequently, Greiner is now the largest packaging manufacturer of rigid plastic packaging for dairy products in Turkey. In Brazil, demand for locally-produced medical safety products has increased significantly after import tariffs were imposed. In response, in 2015 Greiner began the extension of production facilities in order to meet increased demand over the long term.
Outlook for 2016
“The 2016 fiscal year has started well for the Greiner Group. Even so, this is no time to rest on our laurels. Instead, we must actively set the course for future stability”, says Kühner. 2016 marks the start of expansion to the administrative offices at Greiner Bio-One in Kremsmünster: 9.3 million euros are being invested in the upgrade and completion is scheduled for the end of 2017. Work to expand the Greiner Bio-One location in Brazil will be completed in autumn 2016. This will provide us with significantly more local production capacity in the Brazilian market. During 2016, Greiner Bio-One will also establish sales subsidiaries in Turkey and Italy in order to better serve the local markets. Greiner Packaging is concluding a joint venture in India. Today India is the largest market for dairy products globally and offers huge potential in the packaging sector. We are optimistic about the future performance of the Greiner Group.
About the Greiner Group
The Greiner Holding AG (GHO), headquartered in Kremsmünster, is a leading producer of foam and plastics for the packaging, furniture, sport and automotive industries, for the medical technology and pharmaceutical industries, and for major manufacturers of extrusion tools and machines for plant engineering. The Group is organized into five operative sectors: Greiner Packaging International GmbH, Greiner Bio-One International GmbH, Greiner Foam International GmbH, Greiner Perfoam GmbH, and Greiner Tool.Tec GmbH. During the 2015 fiscal year, GHO generated revenue of around 1.4 billion euros and employed 9,109 employees at 134 locations across 29 countries. The CEO of Greiner Holding AG is Axel Kühner, and the CFO is Hannes Moser.