Stanley, NC | July 2020
Blum USA financial year statement for 2019/2020
Blum, Inc. reports a positive conclusion to the financial year, along with the Blum Group, in spite of COVID-19.
Blum, Inc., functional hardware manufacturer for the cabinet industry, reports a revenue of $292.6 million dollars for the fiscal year. Blum, Inc. enjoyed a healthy start to the fiscal year which allowed them to endure the uncertainty COVID-19 brought in the last half. Our sales represent a 1.5% decrease over the previous fiscal year. Thanks to Blum’s innovative product offerings, consistent investments, strong market presence and the commitment of its staff, they were able to weather the ups and downs they saw in the market throughout the past few months.
The 2019/2020 financial year ended June 30, 2020. Blum, Inc. employs 424 employees and 24 apprentices. The Blum Group has more than 8,300 employees, in addition to training 378 apprentices, worldwide. Business in the United States remains stable, and the developments in the kitchen industry continue in an optimistic manner, despite the ongoing uncertainty with the coronavirus.
During the year, Blum, Inc. invested more than $32 million back into the facility with the building expansion, new personnel and machine upgrades. With the two building expansions, Blum increased warehouse capacity by 70%, further supporting the company’s commitment to better serving customer needs. Automation of the expanded warehouse space will be completed in spring of 2021. “These investments will not only support customer growth, they will improve the efficiency within the facility enabling ongoing continuous improvement activities. Continuous improvement in our products, processes, and services safeguard the future existence of our company.” Shannon Lafferty, Blum, Inc. President and CEO said.
The Blum Group
Thanks to a strong start to the year, the Blum Group experienced a worldwide revenue increase of 0.8% to $2.18 billion during 2019/2020, achieving positive results for the financial year. The Blum Group achieved 44% of its turnover in the EU and 15% in the USA. Globally, Blum delivers its products to more than 120 countries and is represented by 32 subsidiaries and/or representative offices and agencies.
According to Managing Director Philipp Blum: “The European Union continues to be important to the stability of our company. The fact that the borders were kept open for freight traffic allowed us to deliver products to our customers all over the world, throughout the crisis.” In North America, results remained broadly at the same level as the previous year, however, South America showed a marked decrease over the previous year. In the Asia Pacific region, Blum was again able to record an increase in turnover in the last business year thanks to ongoing positive developments in China.
Looking ahead to the 2020/2021 business year
The outlook for the coming months is characterised by ongoing uncertainty. The consequences of the health crisis and its impact on the global economy will be felt for some time to come. Blum will continue to focus on developing markets, building close relations with customers and driving ongoing innovation in the field of products and services. Its strategy has always been to safeguard the business in the long term for the benefit of all its employees. “The past few months have been very challenging for us as a company. We have gained many new insights which we would like to use in the future. Thanks go to our team for their commitment, dedication and cohesion,” says Philipp Blum.
Investments of the Blum Group totalled 327 million euros in the 2019/2020 business year. The extension to Plant 4 in Bregenz, Vorarlberg is going according to plan. The project, which consists of a new production bay with 527,400 sq. ft. of floor space and a high bay warehouse, should be completed by the summer of 2021. In line with Blum’s environmental policy, the development scheme will be a multi-story construction to minimise the use of land and soil. Furthermore, Blum’s subsidiary in Canada will move into a newly constructed building consisting of a warehouse, offices, and a showroom in late fall 2020.