TEKA Group, the Madrid-based kitchen outfitter with more than 3,700 employees worldwide, has announced that it achieved higher sales and profits in the last fiscal year.
As reported by the CEO of TEKA Group, Dr. Stefan Hoetzl, “Sales grew by 7% in the Spanish domestic market, while globally they increased by 3.5%. Despite the market slowdown in Turkey, the Middle East, and China, the rest of the areas performed very well, especially in the Americas and Portugal, and the group’s bathroom division.”
The operational result – without the sale of assets and restructuring – grew by 7%, reaching a new high of 8.4% (previous year: 8.1%) of net sales. This growth was driven by price improvements, the contribution of new products launched and cost reduction.
2019, a year with important launches for TEKA Group
In 2019, TEKA Group launched new innovative products, such as the exclusive SteakMaster oven, which has all the features of a state-of-the-art oven and incorporates exclusive technology for cooking grilled meats, achieving a restaurant quality result.
Urban Colors Edition was another of the Group’s innovations for 2019: a range of five collections of household appliances in different colours, inspired by urban environments which adapt to the latest decoration and design trends. For the first time, all kitchen appliances are available in the same colour, design and finishes, from the tap to the refrigerator.
Last year, TEKA also introduced its new DirectSense induction hob, which has surface temperature sensors, as well as direct access functions so that it guarantees constant temperature and perfect results for your meals. In addition, it allows you to cook with different types and sizes of containers, thanks to the flexibility of its cooking areas.
2019 has also been a year of great launches and a lot of design novelties in the sinks category, like the Tegranite+ Edition. This edition is made up of the Stone, Forsquare, and Square collections, built with a material composed of 80% quartz and available in a range of twelve colours. From metallic black, through greys and stone tones, to softer colours such as beige and white, combined with matching designed taps.
Another milestone of 2019 is that the bathroom division was spun off from TEKA Group with effect from 1st January 2020, forming a new company with independent commercial activity under the name STROHM. This has been set up in order to provide integral solutions for the bathroom, offering a wide range of products including taps and shower systems. Both companies – TEKA Group and STROHM – are part of the HERITAGE B Holding, based in Switzerland.
As pointed out by Arturo Baldasano, President of Teka Industrial, TEKA Group managed to reduce its debt from 2013 to 2020 by more than half, lowering it to 133 million euros. In March of this year, this solid situation allowed the TEKA Group to satisfactorily renegotiate its long-term financing line for another five years with its consortium of Spanish banks.
Even though the year 2020 began with good expectations, the current global situation due to the Coronavirus pandemic is affecting TEKA’s business. The Group expects significantly lower sales in the second quarter of this year, as well as a gradual recovery until the end of the year. The Group’s management has put in place a package of measures to reduce costs and to safeguard liquidity in this period of reduced sales. In order to be well prepared, TEKA has contracted additional liquidity in the financial markets that increases reserves by approx. 70%.