uvex group records growth year
With total sales of EUR 655 million (+12% year on year), the uvex group, with its headquarters in Fürth, closed financial year 2022/23 having recorded significant sales growth. At EUR 522 million, the uvex safety group exceeded the sales benchmark of half a billion euros for the first time, increasing its sales by +17.3% in the process. Together with the Filtral group, the uvex sports group lagged well behind expectations, at EUR 139 million (-6.5% year on year).
“We are pleased to have brought the previous financial year to a successful conclusion, although the situation in the sport and leisure segment is less than pleasing”, explains Michael Winter, Managing Partner of the uvex group. After all, the group result was clouded somewhat by falling revenues in the uvex sports group (uvex, ALPINA and Hiplok), which was forced to contend with declining sales in financial year 2022/23 essentially on account of a general downturn in consumption. In contrast, above-average growth was recorded for occupational health and safety products. This was generated primarily on the US market in conjunction with the US subsidiary HexArmor.
“Our strategy of systematically exploiting the potential of the US occupational health and safety market through this successful partnership is paying off”, says Michael Winter, before adding: “In the previous financial year, we increased our share of sales abroad to 58 percent across the entire business group. In view of ongoing geopolitical and economic uncertainties, ensuring that the business group operates even more independently of the German market and the prevailing economic situation, as well as the general business and political landscape, is a key strategic aim”.
Record sales for uvex safety
The uvex safety group generated sales of EUR 522 million in the previous financial year. In so doing, it exceeding the sales mark of half a billion euros for the first time in the company's history. Compared with the prior year (EUR 445 million), this corresponds to sales growth of +17.3%. Therefore, the uvex safety group, which is considered to be the powerhouse of the uvex group, increased its overall revenue share to 79%. The subgroup successfully leveraged its strengths across almost all product groups and regions in the past financial year, with double-digit growth rates posted for all product groups, with the exception of Respiratory Protection and Protective Clothing and Workwear. Occupational safety gloves under the US brand HexArmor, which together with the safety gloves offered by the uvex brand made up a significant proportion of the uvex safety group’s total sales, were the key growth driver. Particularly strong sales growth was recorded in the USA, where the subsidiary HexArmor is headquartered.
In terms of products, the uvex safety group is very well positioned for the future, as can be seen from its appearance at the A+A 2023, the world's largest occupational health and safety trade fair, in Düsseldorf at the end of October. During this event, the uvex safety group showcased its innovative strength by way of new product developments and concepts centred on the key theme of sustainability.
Downturn in consumption sees sales in the sport and leisure segment flounder
While the consumer-adjacent sport and leisure segment was on a constant growth path in the 2020/21 and 2021/22 financial years, the most recent financial year closed with sales of just EUR 139 million (-6.5% versus the prior year). The familiar brands of the uvex sports group – uvex, ALPINA and Hiplok – were all equally impacted by the downturn in demand that set in from May onwards. In particular, cycling and equestrian sport suffered significant sales declines. Consumer sentiment has been negatively influenced over the long term by a range of factors, including the abrupt market saturation seen following an end to Covid restrictions, the economic and political uncertainty linked to the war in Ukraine, high energy prices and rampant inflation. In contrast, the winter sports segment managed to post relatively promising results after having recovered somewhat from the Covid-related fall in sales. Thanks to double-digit growth rates, this segment almost returned to its pre-Covid sales level. The pull of the mountains and the pleasure that skiing brings to so many have won out; markets traditionally dominated by winter sports, such as Austria, Switzerland, Italy, France and Japan, have benefited from strong demand for ski helmets and ski goggles in the post-Covid world. The situation was completely different in Germany and Eastern Europe, for example. Cycling and equestrian sports, which were hit particularly hard by the consumer crisis, play a prominent role in both markets.
Despite successful marketing concepts, sales development at the Filtral group (Filtral and Primetta) also trended downwards. The specialist for collections of sunglasses and reading glasses is managing to hold its own in an equally challenging market environment with fierce price competition.
The online sales channels, which are integrated in the newest subgroup UD2C (uvex Direct to Consumer), recorded growth of 19% despite weak consumption and a market environment characterised by aggressive pricing.
A financial year of ups and down
“Although the situation in the sport and leisure segment is currently very challenging, we are optimistic about the future of the uvex sports group with the uvex, ALPINA and Hiplok brands”, explains Michael Winter. “We have implemented changes to the organisation structure and at the same time anticipate that market demand will recover in the second half of 2024”, he continues.
The business group has identified the greatest potential in the “protecting people” business model, which has unequivocally demonstrated its robustness even through such exceptionally trying circumstances. “Protecting people is a never-ending mission. Moving into the future, we shall continue to rely on a highly diversified, innovative product portfolio that, through proprietary development and production, is characterised by high demands in terms of quality, design and sustainability”, Michael Winter concludes.
