Annual Report 2010 - Melitta

46 Melitta Group Annual Report 2010
Group Management Report
for the Fiscal Year 2010
Consolidated sales of the Melitta Group in 2010 were
well in excess of the previous year’s level. A slight
improvement in economic conditions, exchange rate
effects and the successful launch of new products
helped raise sales by 8 percent with satisfactory earnings
on the whole. Further expansion of business is planned
in the current year.
Business activity
Production and marketing of branded goods in the
categories Coffee, Food Preparation, Household and
Industrial
Melitta is a family-run international manufacturer of
branded products. It develops, produces and markets
branded products for coffee enjoyment, food storage and
preparation, as well as domestic cleaning. The company’s
product range also includes specialist papers and
films, which are mainly marketed to industrial clients in
Germany and abroad.
Founded in 1908, the family-owned company is headed
by a management holding company and managed
according to its mission statement and fundamental
principles. The management holding company is based
in Minden, Germany, as are the Group’s classic corporate
functions. The Melitta Group is organized decentrally.
This enables its operating divisions and national
subsidiaries to closely align their operations with the
needs of the respective markets.
The Group has pooled its business activities into three
strategic business fields and a segment which focuses
on industrial clients: the strategic business field “Coffee
and Tea Enjoyment” accounts for 65 percent (prior year:
63 percent) of the Group’s total consolidated sales. The
Melitta ® brand – coffee, filter papers and coffee
machines for domestic and commercial use – generates
the largest proportion of sales in this business field.
Products for household cleaning and tidying are pooled
in the strategic business field “Convenient Cleaning”.
This business comprises the Swirl ® and handy bag ®
product groups and accounts for 6 percent of sales (prior
year: 8 percent).
The strategic business field “Freshness and Flavour” is
allocated to the Cofresco sub-group. This business generates
13 percent (prior year: 15 percent) of total revenues
with products designed to facilitate the fresh-keeping,
storage and preparation of food.
The Group’s product range is rounded out by specialist
papers – especially for the wallpaper industry – and
industrial films for food packaging. Together with the
Group’s private label products, these account for 16 percent
(prior year: 14 percent) of total sales. This industrial
end-user business was expanded in 2010 with the addition
of the company ACW-Film GmbH & Co. KG,
Rhede, Germany. Melitta acquired 100 percent of this
company’s shares on July 1, 2010.
Development of business
The Group enjoyed growth in sales and is generally
satisfied with its expansion of business
Economic conditions improved on our markets in 2010.
In our industrial business in particular (specialist papers
and commercial users), there was a marked recovery in
demand following a steep fall in sales in the previous
years due to recession. In comparison with the growth
rates of these more cyclical industrial sectors, however,
growth in private consumption was considerably slower.
The consolidated sales revenue of the Melitta Group
grew by 8 percent, from € 1,202 million to € 1,301 million
in 2010. This growth was helped by foreign
exchange effects which led to a 5 percent increase in
sales. The net increase in sales resulting from increased
volumes or prices thus amounted to 3 percent. The
background to this growth was a generally positive
development of coffee sales and a strong increase in
sales of specialist papers. However, we suffered a decline