tesa flag in the sky
Business Development 2016

Business Development 2016

tesa SE grows despite weakness in Asia



Significant positive development in the U.S. and Europe

  • Sales up 2.6% in organic terms, EBIT margin at 16.2%
  • Business with the automotive industry sees disproportionately high growth
  • Consumer business: strong growth with Powerstrips and Powerbond
  • Industry: specialty adhesive tapes for smartwatches open up new opportunities

The tesa Group posted sales of 1,145.8 million euros at current exchange rates in 2016, a slight increase of 0.5% from the previous year. Adjusted for exchange rate effects and special factors, sales rose by 2.6%. We achieved excellent growth in our business regions of Europe and the Americas, where nearly all companies saw sales increase. In the Asia / Pacific region, total sales fell year over year, due in particular to the softening of the Chinese economy. The operating result was slightly below last year’s figure, but with an EBIT margin of 16.2%, it was still at a high level.

This past fiscal year, as before, we continued to make consistent investments in expanding and developing our technological capabilities with the goal of reaching our planned growth targets. Ground was broken for the expansion of our plant in Sparta, Michigan, in the summer. The focus here is on advanced, ecofriendly production technologies that already meet the stringent standards that will apply to the local automotive industry in the future. These technologies will also strengthen our market position in this business segment on a lasting basis. In the growing pharmaceuticals segment, which deals with the development and production of medicated patches, the operating premises were audited by the U.S. Food and Drug Administration (FDA), marking an important milestone in the regional expansion of this business field. A new, additional converting unit will provide the capacity needed for this.

In our business with products for consumers and professional craftsmen, which focuses on Europe and Latin America, we achieved growth with our double-sided “Powerstrips®” and “Powerbond®” mounting solutions in particular. The launch of innovations such as adjustable adhesive nails and screws for different surfaces and Powerstrips® designed specifically for use with wallpaper was highly successful. We continued our international branding campaign, which allowed us to boost both name recognition and sales in important European markets in 2016, as before.

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Sales

Operating result (EBIT) 1 without special factors

EBIT margin 1 without special factors

Sales by business unit

Industry

Comsumer

Sales by region

Europe

America

Africa / Asia / Australia

2015 in € million

1,139.6

191.2

16.8 %

853.7

263.9

630.7

167.2

341.7

2016 in € million

1,145.8

185.9

16.2 %

852.6

275.4

659.8

174.2

311.8

Change in percent

0.5

-2.8

-0.6

-0.1

4.4

4.6

4.2

-8.7

Adjusted for exchange rate effects in percent

2.6

2.0

5.4

6.2

6.7

-6.0