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      19. August 2011 - Biella Group News

      Strong growth for Biella in strategic growth areas – strain felt from commodity prices and pressure of competition

      Brügg, 19 August 2011 – The Biella Group, the largest manufacturer of office supplies in Switzerland with a strong presence in Central and Eastern Europe, was able in the first half of 2011 to significantly increase sales, particularly in the strategic growth areas. The strain was felt due to commodity prices reaching a new high and also to an increase in cut-throat competition. Production capacity, which has been extensively expanded in recent years, is currently being utilised at a high level. Despite the gloom gathering in the economic environment, Biella is expecting a positive result for 2011 as a whole.

      Strong growth was achieved mainly in the strategic growth areas – the international office supplies trade and the Central European market. Trade in individualised office products also showed positive development. The fact that at CHF 63.3 million (previous year: CHF 65.6 million) the sales revenue of the Biella Group was nevertheless below that of the previous year can be attributed exclusively to currency translation effects from the foreign currencies that have depreciated sharply in value against the Swiss franc (mainly the EURO and the Polish Zloty). Once adjusted, sales increased by around 3 %. In addition some major orders – unlike in the previous year – were not delivered until July.

      On 30.06.2011 the operating result of the Biella Group was CHF -3.3 million (previous year: CHF -0.1 million). This fall can be attributed to commodity prices, which have risen to a new high since the beginning of the year, and – as expected – to the increase in cut-throat competition. The group result for the same period amounts to CHF -2.9 million (previous year: CHF 0.1 million). When evaluating the half-year result it should be noted that, due to seasonal influences, the profit and loss statement is traditionally worse in the first half of the year and improves significantly in the second half of the year, with higher levels of sales and earnings. It is gratifying that in this decidedly difficult competitive environment Biella is succeeding in implementing its strategic growth targets and gaining market shares.

      The additional capacity created with the extensive investment programme of the past few years is very quickly being taken up due to the successes in sales. All three production sites are already scheduled to be utilised at a high level up to the end of the year.  

      Despite the good employment situation, the gloom currently gathering in the economic environment – with the increasing developments that are difficult to predict in the financial, and consequently also in the real markets – is giving cause for concern. Biella is, however, confident that it can continue to grow strategically and achieve a positive result

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      Biella Group

      Biella-Neher Holding Ltd.
      Erlenstrasse 44, P.O. Box
      CH-2555 Brügg
      Phone +41 32 366 33 33
      Fax +41 32 366 32 10
      info@biellagroup.com

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