Furniture fittings company Blum has reported a stable turnover of €2,297.16million for the 2023/2024 financial year ended June 30, 2024.

Joint managing directors of Blum Philipp Blum and Martin Blum

The turnover has seen a dip of 1.2%, which equates to a reduction of €27,3 million compared to the previous year.

While the company cites a “challenging” situation in Northern and Centre Europe, Blum has also noted positive market development in Eastern Europe and Middle East and Africa regions.

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Managing director of the Blum Group Philipp Blum commented: “The first few months of the last financial year were challenging for us and the industry as a whole.

“However, there were some positive signs in the second half of the year and we are noticing improvements, even though the market environment remains challenging.

“The cost of raw materials, energy and staff in particular is currently very high.

“End users are also feeling the effects of inflation and associated price increases, they are more cautious about investments and think twice about new purchases.

“This is resulting in a slight decline in the level of equipment in kitchens, which in turn has an impact on fittings manufacturers.”

However Martin Blum, also sees this as an opportunity: “This difficult market situation prompts us to really address our customers’ needs.

“We have 9,294 employees around the world all working together to keep Blum moving forwards and inspire our customers with innovative products.”

To generate growth, Blum has invested €287 million in the 2023/2024 financial year, including the acquisition of partner and sales agency for Belgium, the Netherlands and Luxembourg company Van Hoecke.

In addition, it has redesigned or opened showrooms around the world in Christchurch, Istanbul, Tunis, Melbourne, Johannesburg and Tokyo.

Blum has also invested €182 million in the main site in Vorarlberg, with the expansion of plant 6 in Gaissau now complete and expansion of the company’s plants in Bregenz and Hoechst.

In addition, the first Austrian Blum plant outside of Vorarlberg will be constructed in St. Poelten on a 100,000sqm site.

“Our most important investments, however, are those we make in our employees,” stressed Martin Blum, with over 100 young people starting an apprenticeship with Blum, in the autumn.

Both Blum managing directors are expecting further challenges ahead, but also anticipate that the situation will ease in the long term: “We are optimistic that the economy will pick up towards the end of 2024 and demand for our fittings will increase again,” said Philipp Blum.

Martin Blum concluded: “Regardless of the economic developments, we will put all our energy, ingenuity and innovative strength into remaining a future-proof partner for our customers and a stable employer for our employees.”