Annual Report 2010 - Melitta

48 Melitta Group Annual Report 2010
Inventories rose much faster than sales, partly due to
increased procurement and sales prices. Inventories
increased by € 21 million, from € 123 million to € 144
million. The increase in inventories also indicates the
Group’s healthy order position at year-end 2010.
There was a significant increase in trade receivables as a
result of the expansion of business activities. They rose
by 14 percent to € 199 million. The last scheduled repayment
of a receivable from the sale of shares in previous
years led to a reduction in other assets.
Scheduled funding needs were mainly financed by a
reduction in cash and cash equivalents from € 37 million
to € 10 million and an increase in short- and medium-term
bank liabilities from € 24 million to € 33 million.
This resulted in a net bank liability of € 23 million
as of December 31, 2010, compared to a positive net
bank balance of € 13 million as of December 31, 2009.
Equity capital increased from € 200 million to € 234 million.
The net difference was influenced by net income
for the reporting period, foreign currency changes without
effect on income, and contributions/withdrawals of
the owners. Equity accounted for 38 percent of the balance
sheet total, after deduction of cash and cash equivalents.
There were no effects on equity from the initial
adoption of new commercial balance sheet regulations.
As the total of other accruals and tax accruals, the balance
of other accruals fell mainly as a result of a payment
on account from the accrual formed in previous
years for pending proceedings with the Federal Cartel
Office. Cash flow from operating activities fell year on
year in connection with the increase in net current
assets. Cash flow from financing activities was influenced
by withdrawals of the owners and the increase in
short- and medium-term bank liabilities.
Employees
Headcount up 7 percent
The Group employed an annual average of 3,812 people
in 2010. This represents growth of 7 percent compared
to 2009, following the creation of 256 jobs on average
around the world. The growth resulted mainly from the
assembly plant in China and companies in Brazil.
The number of apprentices at the Group’s German facilities
amounted to 70 as of the balance sheet date (prior
year: 72).
Opportunities and risks
Company’s development accompanied by suitable risk
management system
The Melitta Group uses a differentiated risk management
system aimed at the structured identification and
assessment of opportunities and risks. Risk management
is regarded as all organizational regulations and
measures for the early recognition, evaluation and analysis
of corporate risks.
Melitta pursues a business strategy which can be classified
as risk-averse. In the course of auditing the annual
financial statements 2010, the external auditors confirmed
that the risk early recognition system was suitable
and in line with statutory requirements.
The risk management system comprises suitable risk
reporting procedures. These ensure that the managers
responsible are constantly and quickly informed about
potential risks and opportunities. This enables both the
Group and individual companies to take fast and effective
corrective measures.
The main risks of the Melitta Group result from general
economic developments, sector developments, and risks
from general operating activities. In addition, the Group
is exposed to financial risks, and especially risks from
currency and raw material fluctuations.