A Record Year for Ring International Holding in 2012
7
Both divisions of RIH Group - stationery and coating - have performed well above budget in 2012 despite negative external influences, in particular rising raw material costs. "As a consequence of our focus on high quality niche products and longstanding customer relationships - which is reflected in long-term supply agreements - we were - both on a group level and in the coating division - able to maintain a stable level of revenues despite generally adverse economic trends. On the profit level, we have intensified our efforts to continuously improve production processes by making use of extensive knowledge in Japanese production methods. These efforts have - among others - led to a year-on-year profitability (EBITDA) increase by approximately 6% for the entire RIH group," explains Ralph Martens, chairman of the supervisory board of RIH Group.
Over the past seven years (2005-2012) not only RIH's sales but also its profits have shown a 25% compound annual growth rate. According to the focus of the group on its further development, RIH's Coating Division continues to grow - not only in sales but also in margin. From 2006 to 2012 the EBITDA increased from 1.7 mio EUR to 11 mio EUR. Rapid growth through strategic acquisitions paired with an above-average organic growth in selected profitable niches make RIH Coating a sizeable specialty supplier to industrial clients. Total Assets of RIH Group constituted approx. 180 mio EUR, whereby the coating division accounts for nearly 70 mio EUR thereof. In the sales structure of RIH Group the coatings represent almost 50 %.
Each single product field has a non dominant share in overall sales which bring the advantage of no dependency on any particular product field. The strategic goal of RIH Group is to keep strengthening the two division - Stationery and Coatings - and to continue its successful growth and integration strategy of the past years. In this respect, RIH continues aiming at selected market segments within each division in order to specialize itself therein and expand its leadership position with an eye to being a sizeable and knowledgeable partner to its stakeholders.