DELO, one of the world’s leading manufacturers of industrial adhesives for the automotive, consumer electronics and semiconductor industries, generated revenues of almost €205 million ($222 million) during fiscal year 2022/23, which ended on March 31. This is an increase of 12 percent compared to the previous year. Japan and the United States particularly proved to be growth drivers for the high-tech adhesives manufacturer.
As a result, the Americas’ share of total sales rose to 18 percent. Asia, the company’s largest market, declined to a 48 percent share of sales. A further 34 percent of revenues were recorded in Europe. At the industry level, the main pillars were the semiconductor, automotive, and consumer electronics industries.
"The past fiscal year was very successful, but at the same time very challenging," explains Dr. Wolf Herold, Managing Partner at DELO. "While Russia doesn't play a role for us as a market, the war in Ukraine led to sharply rising raw material prices, complicated logistics to Asia and major uncertainties in energy supply."
As was during the COVID-19 pandemic, the company benefitted from high inventory and great operational flexibility, allowing customers to enjoy high security of supply.
As in previous years, investments in research and development accounted for approximately 15 percent of turnover. In addition, there was increased investment in international operations; in the last fiscal year, DELO moved into new or enlarged premises in Shenzhen (China), Seoul (South Korea), Boston, and San José (USA). In addition, the search is currently underway for a new production site to be built in Southeast Asia. In Windach, construction on a fully automated, 6,000 m² warehouse is set to begin this year.
At the beginning of May, DELO welcomed its 1,000th employee, and now employs 100 more people than it did a year ago. Additionally, more than 200 jobs are to be created in the current fiscal year. The family-owned business will pay its employees an inflation compensation bonus of €2,000 (approximately $2,200).