Back

News

Company

Balance of 2008

In 2008, despite global economic developments in the second half of the year, bathroom manufacturer Duravit continued upon its growth course and ended the year with an increase in sales of 7.6%. This was mainly thanks to an outstanding first half of the year that, before the crash, resulted in clear double-digit growth. In 2008, total sales to third parties thus increased to Euro 335 million. Key markets were Central Europe, particularly Germany, Italy, Spain, the United Kingdom and France, as well as the USA, the Middle East and selected Asian countries. The majority of sales were in the Euro zone; within the Duravit Group, the international share of turnover totalled 77.8%. On the international markets, both within and outside the EU, sales in the group as a whole continued to grow in the single- to double-digit range. Products that were introduced onto the market in the last four years generated the greatest proportion of the sales increase.

Against the industry trend

In Germany, Duravit AG also defied the market trend by increasing sales. Achieving growth of 2.5%, it is one of the industry’s success stories because in 2008, Germany’s construction industry did not grow. The downturn occurred mainly in the second half year. According to the Fachverband für sanitär-keramische Industrie e.V., (Association for the Sanitary Ceramic Industry) in 2008, domestic sales of German ceramics manufacturers fell by 1.5%. As a result of increases in overseas sales, the turnover of association members was a total of 0.1% higher than the previous year. In all, Duravit operates with 25 subsidiaries and is present in more than 80 countries. Production takes place at several national and international locations: Hornberg, Schenkenzell, Meißen (Germany), Bischwiller (France), Cairo (Egypt), Istanbul (Turkey), Chongqing (China) and Bizerte (Tunisia). The Duravit Group had an annual average of 5,436 employees worldwide.

International brand development

During the course of international brand development, in 2008, the showroom moved to the top of the agenda: the bathroom manufacturer invested in the USA and opened its first showroom on Madison Square Avenue in New York. It is intended to give the American market a new impetus and, at the same time, further promote the company’s internationalisation. In Paris, the “Salon d’Eau” was revamped and now represents a second important contact point for international project business. In addition, Duravit invested in the Meißen showroom by creating a sheltered area for “trying out the baths”.

Expansion of production capacities

As a result of increased demand in various areas, production capacities were expanded in 2008. In the bathroom furniture area, Duravit first expanded the production site and then reorganised manufacture. The existing machinery was supplemented with state-of-the-art, computer-controlled machines. At the beginning of May, the company took over 51% of the Tunisian ceramic manufacturer “Manufacture Tunisienne des Céramiques” (MTC), which has a production site to the northwest of Tunis. The factory in Egypt was expanded with the ambitious aim of increasing annual capacities from 1.2 million to 2 million. On 17 October 2008, Duravit laid the foundation stone for a new production site in India.

Weak market situation in 2009

The global economic and financial crisis poses a huge challenge for Duravit as a result of its increasing internationalisation. Following years of continuous double-digit growth that continued through the first half of 2008, sales in a number of important growth markets have been declining since the last quarter of 2008. Overall, the management board is expecting a rather weak market situation on both the German and international markets in 2009 and a clear decrease in sales. By taking specific measures, such as cutting flexitime accounts and reducing contractual working hours, stretching investments and avoiding non-essential expenditure, Duravit is working to combat this trend. In addition, particularly in these difficult times, the bathroom manufacturer firmly believes in continuing to offer maximum quality products. This is why Duravit hasn’t reduced the pace of development but, instead, has stepped it up. The results include products that even open up new business areas.

Growth again possible in the long term

The company also sees potential for its products in conjunction with the return to real values that is emerging as a result of the crisis. Chairman Franz Kook: “There are signs that many people are again viewing real estate as a store of value; this is true wherever real estate is not regarded as an object of speculation but as something that retains its worth.” He therefore believes that those looking for a sustainable investment that can provide a place to live for generations to come are set to rediscover the value of real estate. The chairman is certain: “Whenever the objective is to maintain or increase the value of a property, the bathroom, as a permanent part thereof, automatically returns to centre stage.” For this reason, the company is completely confident that, in the long term, it will succeed in resuming its growth. However, at present, the focus is more on getting through the crisis safely and securely. Franz Kook: “The ability to again increase turnover and profits will depend on future developments in the economy as a whole.”

Duravit facts ›
As a result of increased demand in various areas, production capacities were expanded in 2008, as for example the bathroom furniture plant in Schenkenzell, Germany.

« Back to overview