Kramp Groep is looking back on the financial year of 2013 with satisfaction; the year in which the two technical wholesalers Kramp and Grene merged. The merger and the advantages announced for customers and suppliers, has been received well by the market, says a pleased Executive Board in a statement to the 2013 Annual Report issued today. Due to a long cold winter, group turnover increased by 4,6% to € 616M (2012: €589M), which is significantly less than the growth figures the companies achieved in previous years. Due to relative high costs that were driving future turnover growth, the operating result before depreciation and taxes (EBITDA) decreased by 10% and closed at € 62M (2012: €69M). The agricultural and horticultural sectors are however experiencing a warm start to 2014. During the first four months of 2014 the companies achieved a growth in turnover well above the budgeted 10%.
Kramp (Varsseveld, NL) and Grene (Skjern, DK), two leading technical wholesalers for the agricultural industry and related sectors in Europe, reached an agreement on a merger in August 2013.
Both companies had been working together for many years and there was, with the exception of Poland, no geographical overlap. Kramp Groep now operates under the company names Kramp and Grene and supplies daily from 9 distribution centres through ‘Innight’ distribution to almost all European countries. The 60,000 customers are mainly dealers, repairers, maintenance companies and machinery manufacturers, who supply and repair tractors and equipment for farmers and horticulturists. The assortment covers over 700,000 parts and accessories. The total number of employees of the combined companies increased by 150 to almost 2,500 FTEs.
“It’s been a memorable year”, according to Eddie Perdok, CEO of Kramp Groep. “In 2013 foundations were laid for a turnover that can rise to € 1 billion in 2017. Our market share in the relevant portion of the European parts market is over 9%, which still offers enough potential for further growth”.
Market developments
Countries in which Kramp has been operating for a relatively short period of time, such as Spain, Italy, the Czech Republic, Slovakia and Hungary, showed a comparatively strong growth in turnover and Kramp increased its market share. France also experienced a significant growth in turnover and market share. In countries where Kramp Groep has an established market position, such as the Netherlands, Belgium, Germany, Austria, Switzerland, United Kingdom, Denmark, Norway, Poland and Sweden, the market share has consolidated during 2013.
In 2013, Kramp Groep’s sales increased by € 27 million, from € 589 million to € 616 million. Turnover in the countries where Kramp operates increased by € 33 million; Germany and France in particular were responsible for a significant part of the absolute growth in turnover. The countries in eastern and southern Europe mentioned earlier also saw a significant increase in sales. The countries in which Grene operates saw revenue fall by € 6 million, mainly as a result of the sale of a part of the business.
Investments
The total investments in the financial year 2013 amounted to € 11,0 million. After a number of big investments had been made in 2012 in the premises at Poitiers (France) and Konin (Poland) and in a shuttle system in Varsseveld (the Netherlands), investments in property and machinery were more modest in 2013. Investments primarily focused on ICT, property, warehouse equipment and translation costs for products.
Prospects for 2014
The warm start to 2014 is in sharp contrast to last year’s cool beginning. During the first four months Kramp and Grene performed well above budget predictions. Kramp Groep is on course to achieve a growth in turnover to € 676 million (+10%) for the whole of 2014, as per budget. It is also expected to achieve a relative margin that will be comparable to the level achieved in 2013, product margin to fall slightly, but direct costs will also be slightly lower.
Investments in 2014 will be significantly higher than in 2013.
Kramp Groep will mainly invest in ICT and building an office and expanding storage capacity in Varsseveld.
For more information: www.kramp.com.
