Damm increases sales by 10% in 2019 to 1,385 million euros
Last year saw a 7% increase in the workforce to 4,900 employees and international expansion into 12 new markets
Damm achieved a turnover of 1,385 million euros in 2019, 10% higher than in 2018. The results of the financial year will be submitted for approval at the next Shareholder Meeting, to be held at the Estrella Damm Antiga Fàbrica on the 29th of September.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were 247 million euros, which represents an increase of 25% over the previous year. Net profit was 120 million euros, 7% higher than in 2018.
The company’s important commitment to innovation and brand enhancement, an increase in production capacity and efficiency and the constant push for internationalisation, along with positive developments in the markets where the company operates, are some of the factors that have favoured this growth. This growth is also reflected in the number of employees, the total rising from 4,574 in 2018 to 4,900 at the end of 2019. Last year the company received the recognition of Merco, the corporate reputation business monitor, for its ability to attract and retain talent.
Damm is currently in more than 120 countries. In 2019 the company recorded an increase in sales in all the international channels and markets in which it operates. The successful evolution of international sales in recent years has been notable, from 1.5% of sales in 2008 to over 25% today.
Another of the highlights of 2019 was Damm's investment in research and development, technological innovation, and digital transformation, to which it allocated a total of 8 million euros.
Demetrio Carceller Arce, Damm's executive chairman, remarked that “the results for 2019 are the result of the company's efforts to continue growing sustainably and expanding internationally, thanks to the strength of our brands, which currently make up an extensive product portfolio, the consolidation of our extensive distribution network and significant investment in increasing our production capacity, while improving efficiency throughout the supply chain.”
The company's activity has been affected since March of this year by the Covid-19 crisis, which led to the complete closure of the hospitality industry channel, but it is confident that it will recover activity in the coming months. Carceller Arce emphasised that “in recent months we have strived hard to adapt to the situation, making all our resources available during the health crisis to mitigate the effects of the virus, and resolutely supporting the hospitality industry in these last few weeks as it begins to re-open.” He added that “our production plants have continued operating at all times, ensuring the uninterrupted supply of our products. We have also invested heavily in technology, allowing us to face the situation with all the guarantees of health and safety.”
Sustainability, a key aspect in the growth of the beer company
2019 was also a notable year for sustainability, now consolidated as a transversal strategic axis of all the company's activities. This has been seen in a change of direction in communication, reflected in the recent Estrella Damm campaigns "Soul", "Lovers" and "Commitment", aimed at raising awareness about the need to protect the sea. The business has also improved its environmental management, with the implementation of significant measures such as the launch of the first plastic-free packs of Estrella Damm cans, with a new packaging system made from 100% biodegradable cardboard.
Damm's commitment to raising awareness of the importance of protecting the environment led the company to once again put into practice its summer plan of encouraging the recycling of cans on Mediterranean beaches, as well as a roving campaign to pick up rubbish from beaches, in cooperation with the SEO BirdLife NGO.
Proof of this firm commitment to sustainability is the company's adherence to the United Nations Global Compact, which means working within the framework of ten universally accepted principles in the areas of human rights, labour standards, the environment and the fight against corruption, as well as the adoption of measures which support the United Nations’ objectives, as embodied in the 17 Sustainable Development Goals (SDGs).