BHS tabletop AG Continues Growth and Profits

German tabletop leader BHS tabletop AG announced positive financial results today. With the successful new product launches of the PLAYGROUND collection and innovative Industry 4.0 porcelain solutions such as Pabis, in which a radio-controlled transponder on the porcelain item transmits the specific information directly to the checkout, along with strong domestic business and the positive economic situation overall in Europe, the listed company BHS tabletop AG, global leader in professional porcelain, enjoyed a successful year.

In 2017, BHS tabletop AG recorded a currency-adjusted turnover growth of 1.5 per cent, up to 122.8 million euros (previous year: 121 million euros), contrary to industry trends. In real terms, turnover amounted to 121.5 million euros. Adjusted for one-time special effects relating to the acquisition of the British subsidiary John Artis and the change in ownership, EBIT comparable with the previous year rose from 5.7 million to 5.8 million euros, corresponding to an increase of 3.1 per cent. After special effects, EBIT amounted to 4.8 million euros (5.8 million euros in the previous year).

The continued positive economic situation in what remains a highly price-driven market is due to the successful business strategy. BHS has transformed from being purely a porcelain manufacturer into a global provider of entire tabletop solutions in all markets in the food service industry. Its employee numbers across its German locations remain similarly stable. At the end of the year, the company had 1,176 employees. In 2017, BHS also took on 42 trainees – further evidence of the company’s future-oriented outlook. A regional advertising campaign launched in 2017 highlighted the appeal of BHS tabletop as an employer, aiming to attract even more young people to undertake technical or business training at the company.

‘BHS continues to be a profitable, economically robust company,’ CEO Christian Strootmann reflects on the end-of-year results. ‘We once again remained true to our company motto “We invite the world to our table” in 2017 and secured attractive orders on all continents.’ In many export markets, trade barriers and political conditions continue to impact on investments in the tourism industry, and thus indirectly also on porcelain demand. As BHS was particularly successful in Europe and North America in 2017 and exported its products to around 120 countries overall, it is independent of individual foreign markets. ‘Regional diversification is another strength of BHS tabletop, particularly in the case of fluctuating demand in individual markets.’

The American subsidiary BauscherHepp Inc. and the sales cooperation with the American glass producer Libbey, which distributes the Schönwald brand in the US market, contributed to a welcome growth in the key US market. BauscherHepp recorded a slight increase in turnover: from 15.2 million euros to 15.9 million euros. Similarly, positive were the financial results of the British sales subsidiary John Artis Ltd. Despite the noticeable effects of Brexit, it recorded a slight increase in turnover of 2.6 per cent in its local currency. However, due to the clear devaluation of the pound, turnover in euros dropped from 15 million euros in the previous year to 14.1 million euros in 2017.

The consistent alignment based on customer needs adopted by BHS tabletop was further highlighted last year with the successful introduction of Playground. The independent range, which is based on attractive materials and can be combined with modern porcelain collections from the three brands Bauscher, Schönwald and Tafelstern, allows restaurateurs to create new worlds of experience. ‘Trend-focused gastronomy also looks for innovations on the dining table. The combination of Playground with our strong brands has proven to be a smart move, as we have cleverly expanded our product range in this way.’

Coveted design and technology awards for Bauscher and Schönwald Hard porcelain from the three brands remains at home throughout the world. This is demonstrated by numerous new customers as well as the expansion of business relationships with existing customers. Bauscher acquired the largest decor order in its history in 2017 – 161,000 decorated coffee and espresso cups from the Enjoy range were supplied to 250 Migros cafes. The Swiss company has been exclusively serving Café Royal coffee and espressos in its restaurants and takeaways since July 2017. This brand is advertised by pop star Robbie Williams. Bauscher provides the stylish look which is called for.

Porcelain from Tafelstern is now also in use in the stylish setting of the Harbour Club in Amsterdam and Rotterdam. Further evidence of the international nature of the brand is the order to supply Canada’s largest chain of retirement homes, Chartwell Retirement Residences. Schönwald equipped the luxurious five-star hotel Kulm in St Moritz with its Allure and Islands collections as well as additional items from the Playground collection. Kulm was selected by Gault&Millau as hotel of the year for 2018.

The brands Bauscher and Schönwald also received prestigious awards for their collections. Bauscher was recognised for its Purity Pearls decor in the USA with the FER Tabletop award. Bauscher received the Küchen-Award Technik award from the specialist magazine of the same name for its functional and attractive Airflow collection. Schönwald scooped the German Design Award 2018 for Islands. This prestigious global competition recognises outstanding design achievements.

The Schönwald brand has recorded a recent success. After Virgin Atlantic planes were supplied with porcelain in the North American airline sector, the company which belonged to the British multibillionaire Richard Branson until its sale to Alaska Airlines, an additional order was recently also received from Alaska Airlines itself. The order for the fleet is the biggest airline order for Schönwald in North America and represents a good start to the new business year.

Work on BHS tabletop’s largest investment project at the present time, the new bisque firing kiln in Schönwald, is proceeding according to plan. The investment project worth four and a half million euros is scheduled to be completed by the middle of the year. BHS continues to invest in the current business year and is planning further investments of around six million euros in total at its locations in Weiden and Schönwald.

Christian Strootmann is cautiously optimistic about the year ahead: ‘Protectionist tendencies have grown stronger worldwide, the tangible consequences of Brexit are casting a shadow on export business in the German industry and uncertainties are growing larger overall. However, based on our strong advanced business model and our active investment policies compared to our competitors, we believe that BHS is in a strong position and will be able to continue to grow in spite of low-cost competition, exchange rate issues and various geopolitical risks.’