Round-up | NEWS
More supply woes as ceramics industry crisis hits production
A CRISIS in the ceramics industry caused by the disruption to the supply of white clay and soaring gas prices is impacting an already fragile supply chain and has led to the cancellation of a key industry trade show.
The organisers of the 2022 Cevisama ceramics and bathroom fair have announced the cancellation of the event due to “a critical situation in the ceramics sector”.
The fair was to have taken place in
Valencia, Spain, from June 13 to 17, but has been postponed until February 27 to March 3, 2023.
The fair had already been postponed from February because of the sixth wave of the coronavirus in Spain, and it has been postponed again, say organisers Feria Valencia, in view of the “huge uncertainty and unpredictable outcomes following Russia’s invasion of Ukraine”. Feria Valencia said that in addition to the problems caused earlier by the pandemic, the war has exacerbated the energy crisis that ceramics manufacturers have been having to deal with since the middle of last year. The war has caused gas prices to increase sharply, which has hit the gas-intensive ceramics industry hard. This has already caused stoppages in production and adjustments in working practices in the form of furloughs. The organisers also pointed out that the war in Ukraine has also interrupted
the supply of white clay to the ceramics industry, alongside the increases in raw materials costs. It has also meant that Ukraine has lost the Russian market, which is its 12th largest. The organisers said that even though there has been a very positive response to the fair, with 25% more visitors having pre-registered than for previous editions, exhibitors had been pulling out of the commercial show- case to the point that it was no longer sufficiently attractive to warrant the fair taking place.
In a statement, Cevisama director Carmen Álvarez said: “We are very sorry for the problems the cancellation may cause, but what we have is an emergency situation that has arisen and that is preventing us from going ahead
with the industry’s grand
regrouping we were so looking forward to. We do not want to let down the trade visitors who come every year from all over the world.”
Grohe parent Lixil grows revenue and profits with EMEA sales up 15%
GROHE PARENT company, water technologies and products specialist Lixil, has reported a rise in revenues and profits for the year ended March 31.
Revenues for its international business, Lixil Water
Technologies (LWT), which incorporates Grohe, increased strongly by 19%, driven by strong performances in Europe and the Americas. EMEA sales rose by 15% year on year, rising above pre-Covid levels. Sales grew in all categories and channels, with wholesale channels and e-commerce continuing to perform strongly.
Lixil Corporation reported that revenue increased 4% to ¥1.428 trillion (£9.03 billion), driven by continued strong performance in
Lixil’s US and
European businesses. Net profits in the full year increased by ¥15.6bn to ¥48.6bn (£310 million). Lixil Corporation’s core consolidated profits in Q4 decreased because of intensified increases in material costs and additional costs incurred in ensuring a stable supply of products. Core profits rose for the fiscal year, however, rising by ¥7.6bn to ¥64.8bn (£410 million) thanks to a sales increase in Europe and the Americas, price optimisation, a reduction in selling, general and administrative costs and progress in structural reforms.
June 2022 ·
In its international business (LWT), of which Grohe is part, it said that core earnings increased by 39% thanks to “robust sales in the Americas and Europe”. The Americas saw a rise of 13% year on year, while the EMEA market saw a rise of 15%, rising above pre-Covid levels. To help Lixil meet the needs of its customers, Lixil’s Grohe brand launched Grohe Professional in the EMENA region, aimed at installers and their end-user clients. It also launched Grohe QuickFix, aimed at the growing DIY market.
The company also expanded its GIVE vocational training programme, aimed at encouraging the next generation of plumbers, supporting plumbing schools across the region and helping students gain work experience or placements after graduation. Speaking about the results, Jonas Brennwald, leader Lixil EMENA, commented: “I’m proud to see that even in a challenging macroeconomic environment, the EMENA region is going from strength to strength. “We are confident that the Grohe brand with its differentiated go-to-market strategy will continue to contribute to the success of Lixil.” Lixil Group CEO Kinya Seto added: “We are pleased to deliver year-on-year revenue and profit
growth and have significantly improved our financial position despite the extremely challenging operational environment in the fourth quarter. Our US and European business achieved double-digit growth while our APAC business [Asia Pacific] is continuing to recover from the impact of Covid-19. “However, soaring raw material costs, distribution costs, and response costs to supply chain disruptions weighed on our bottom line in the fourth quarter. To combat these challenges, we are taking measures including timely price increases, shifting to high-value-added products, and switching to alternative materials. “We are also building a more agile and resilient supply chain and production system to deliver for our customers. At the same time, we are accelerating development of products that reduce environmental impact and contribute to a circular economy to help protect the planet and capture emerging business opportunities.
“While an uncertain operating environment is likely
to persist, I am confident we will be able to achieve sustainable growth for the long term.”
Lixil is forecasting revenue for the 2022/23 financial year of ¥1.52 trillion and core earnings (profits) of ¥81bn (£510m).
13
Siematic UK MD Bernard Otulakowski retires
MANAGING DIRECTOR of Sie- matic, Bernard Otulakowski, has retired after 43 years with the brand. Kerry Furber has been named as the new MD (pictured). Otulakowski has been managing
director for 20 of the 43 years he has been with the company. Furber’s career has progressed with Siematic. She started as a regional manager in the south before being promoted to national sales and marketing manager.
Commenting on his retirement, Otulakowski said: “I have been both proud and privileged to work and represent this design-led global brand all my working life. Many of our dealerships I have known for 40-plus years, which is a true testament not only to the brand but the relationship we have forged. In fact, I have had the enviable task of working with some of the strongest, loyal and professional studios within the kitchen industry. “My timely departure will allow the Siematic brand to enter new untrodden
territory and remain one of the leading brands within the industry.”
Siematic is keen to grow and personalise its digital offerings, and Furber will push that side of the company. She said: “Being Bernard’s successor is a huge role to fill, but having worked with Siematic for the best part of a decade, I know I’m ready and experienced enough to take on that mantle. “In fact, I’m really eager to push the digital side of our strategy further. This will allow us to maximise our growth in the UK luxury kitchen market and give as many people as possible the type of premium lifestyle experience that Siematic can offer.”
Meanwhile, the Siematic team have appointed Samantha Povey as the new northern regional sales manager. Povey has 11 years’ experience working with luxury German kitchen brands. Povey said: “Client’s expectations are changing all the time.
I hope to
assist dealers with innovative ideas to drive sales forward.”
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