The Greiner Group achieved a seamless continuation for the business year 2007 of the successes achieved the previous year. The company proved its business strength despite high raw materials prices and the economic cycle rumblings in the second half of the year. Overall turnover exceeded € 1.1 billion, the first time the billion line has been crossed in company history, and growth of 12.4 % was recorded against 2006. ”The turnover growth is organic virtually in its entirety”, the two CEOs Boris Greiner, MBA und Dr. Axel Greiner reported in Linz on 24 April 2008.
The Greiner Group with its two holding companies Greiner Holding AG and Greiner Bio-One International AG can look back on a business year characterized by substantial growth in 2007. The increasing globalization of the corporate group, its broadly established network and the two major strengths of diversification and innovation were converted into business success.
Business analysis / economic development
The economic situation worldwide was in full swing at the start of 2007. This clouded over in the second half of the year, however, as a result of the US real estate crisis. This crisis and its effects have put the brakes on economic growth. “While the USA drafts stringent controlling systems for banks and businesses, and succeeds in implementing them abroad, it is remarkable a fiasco of this kind could be allowed to happen at home”, Chairman Dr. Axel Greiner commented.
High raw materials prices, weaker US dollar
The year 2007 was also marked by an intensive climate protection discussion, high crude oil and raw materials prices and a weak US dollar with a simultaneously strong euro. The Greiner Group is aware of the fact that the climate discussion will lead to changes in the industry. It is introducing continuous permanent measures to significantly improve energy and resources use all down the line. “The highly desirable increased use of renewable raw materials has significant limitations at present as a result of non-profitability and a lack of capacities”, Chairman Boris Greiner, MBA said.
Powerful organic growth
The Greiner Group was able to make good use of the worldwide good economic climate in 2007 boosting turnover from € 979 million to € 1.1 billion. This represents a significant 12.4 % increase. Turnover growth resulted almost 100 % from organic growth. This underscores the success of the continued diversification policy and the strengths of the Greiner Group core business areas.
Turnover growth by holding company
The Greiner Holding AG saw a powerful growth in turnover during 2007 of some 13 % from € 760 million to € 859 million euros. Greiner Bio-One International AG was also able to increase turnover in 2007 as in the past few years. Growth reached almost 11 % from € 218 million to € 242 million. This growth resulted from the two segments BioScience and Preanalytics, with the Preanalytics showing the strongest growth of the two.
Turnover by regions
Only slight changes were recorded in the geographical turnover share-out compared with the previous year. Austria continues to turn out 44 % of the manufactured products, with 17 % in Germany and 25 % in the remaining EU countries. The remaining 14 % is shared out among countries outside the EU.
The Greiner Group currently has 117 locations at its disposal – of these 96 are production works and 21 sales and distribution centers – in 27 countries. 91 of 117 locations are in EU member states. The Greiner Group international presence was further expanded in 2007 by five new locations.
The budget for 2008 once more sees a healthy turnover development in the region of 10 percent to be shared out on a planned basis through all the corporate areas. With major investment planned to a volume of around 100 million euros 2008 will be the year of investment.