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Messe Düsseldorf Reports Above Target Results for 2013
The Messe Düsseldorf Group closed the 2013 financial year with results above target. Consolidated sales revenues in the financial year 2013 - a year with a lower number of events due to the trade fairs’ cycles - totaled EUR 323 million (2012: EUR 381 million). The overall Group achieved net income for the year after tax of EUR 14 million (2012: 40.6 million). "For Messe Düsseldorf, 2013 was a year with a lower number of events - in addition to the generally difficult economic environment,” said Werner M. Dornscheidt, President & CEO of Messe Düsseldorf GmbH. “The economic development in the Asian growth markets has slowed down somewhat. In particular China and India witnessed lower growth. Against this background, our positive results are all the more pleasing,” he added.
The Messe Düsseldorf sales fell to around EUR 258 million (2012: approx. EUR 309 million) for cyclical reasons. Own events at the Düsseldorf site accounted for around EUR 195 million (2012: EUR 243 million), guest events and other proceeds for approximately EUR 19 million (2012: around EUR 24 million). Important sources of revenue were the trade fairs K, MEDICA, A+A and ProWein, whose sales increased compared to the respective previous event. Further sources of revenue were the trade fairs boot and CARAVAN SALON. The annual result of Messe Düsseldorf GmbH after tax was around EUR 11 million (2012: approx. EUR 28 million).
Sustainable growth course - without subsidies
The success of the Messe Düsseldorf Group is based on expanding the international network, continuously developing the content and themes of both national and international events, and enhancing their profile by means of special shows, conferences and congresses. “At the same time, we have a sustainable approach and operate without subsidies. We are generating our own growth. We want to continue to make new investments and to expand the range of events worldwide,” explained Werner M. Dornscheidt. The aim is to strengthen the company’s position as the global number one in the organization of capital-goods trade fairs.
One of the most important cornerstones of the company's successful development is the sound net-worth and financial position. The balance sheet total of the Messe Düsseldorf Group increased by 4.6% compared to the prior year to EUR 676 million.
Almost the entire operating cash flow generated with events in 2013 was invested in optimizing the halls at the Düsseldorf exhibition center. The complete renovation of all halls and customer areas is scheduled to be completed by 2030 with a total investment of EUR 600 million. Messe Düsseldorf will pay its shareholders a dividend of approximately EUR 5.5 million for the financial year 2013.
High level of internationalization of the events as a quality characteristic
In 2013, the development of sales at Messe Düsseldorf GmbH was characterized by several globally leading trade fairs. The largest sources of revenue were the No. 1 events K, MEDICA, ProWein, CARAVAN SALON and boot. Overall, Messe Düsseldorf GmbH organized 29 own and guest events at the Düsseldorf exhibition center. Comparing the financial years 2012 and 2013, there was a decline in rented net space as well as in the number of exhibitors and visitors - in line with expectations due to the lower number of events. Nevertheless, exhibitor figures were 3.3% above those for the respective previous event, and both rented net spaces as well as visitor numbers were almost on the same level as at the previous events.
The share of international exhibitors at the own events in Düsseldorf was again very high - at an average of 67% (previous event: 65%). Especially ProWein (82%) and MEDICA (77%) demonstrated their high degree of internationality. The share of international visitors remained constant at 31%; the highest figures were achieved by the plastics & rubber trade fair K with 59% as well as the medical technology trade fair MEDICA with 56%. “It should be emphasized that our globally leading trade fairs are attracting more and more decision makers. This is a fundamental quality characteristic of the Düsseldorf events,” remarked Werner M. Dornscheidt.
Russia remains strongest international market
In the international trade fair business, Messe Düsseldorf GmbH can look back on a successful financial year with 35 contracted events as well as 18 own and joint events. The majority of these events were held in the CIS States (69%), China (8%), the United Arab Emirates (6%) and Brazil (5%). The Group achieved international sales of some EUR 113 million in 2013, with the largest share in Russia (EUR 49.5 million), the Czech Republic (EUR 34.6 million) and China (EUR 11.3 million).
Messe Düsseldorf also further expanded its global event portfolio in 2013 with the trade fairs indometal in Jakarta, wire South America in São Paulo, ProWine China in Shanghai, MEDIZ SPB in St. Petersburg/Russia as well as Energy Storage North America in San José/USA and Energy Storage India in Mumbai. In addition, a major success was the Food Processing & Packaging Exposyum in Nairobi/Kenya, held for the first time in November.
Further development of the product families
In April 2014, MEDICAL WORLD AMERICAS in Houston/Texas celebrated its successful premiere as part of Messe Düsseldorf’s “World of MEDICA”. In Istanbul, the company recently organized the new trade fair TOS+H EXPO for occupational safety and health - Messe Düsseldorf’s first event on the Turkish market.
Messe Düsseldorf will also enhance its successful product family of international packaging trade fairs with new events in the Chinese market: SWOP - Shanghai World of Packaging, consisting of four trade fairs (CHINA PHARM, PacPro Asia, FoodPex and BulkPex) presenting all stages of the packaging value chain and related processing segments will be launched in November 2015.
The program at the home base in Düsseldorf was also broadened by two events: Simultaneously with the new presentation of GDS – global destination for shoes & accessories, "Tag it!” a new trade-fair concept will have its premiere in July, replacing the GLOBAL SHOES event. Pump Summit, a trade fair with conference on the subject of pumps, compressors and seals, will be held for the first time parallel to Valve World Expo 2014 in December, extending the group's portfolio in the “Bright World of Metals” segment.
Outlook 2014: Sales will reach the EUR 400 million mark
Messe Düsseldorf is optimistic regarding the current year. “Consolidated sales will reach the EUR 400 million mark in 2014 with its high number of events. With EuroShop, wire & Tube, interpack, glasstec and MEDICA, five important capital-goods trade fairs will take place in 2014,” stated Werner M. Dornscheidt. He sees the development of the trade fairs in the first quarter of 2014 as initial confirmation of this target. Compared to the previous events, there has been a positive development in the number of exhibitors and visitors as well as in net space. Overall, the number of events at the Düsseldorf exhibition site will increase from 29 in the financial year 2013 to an estimated 35 in the financial year 2014. More than 80 events and participations are planned abroad.
The Messe Düsseldorf Group
With sales of EUR 323 million in 2013, the Messe Düsseldorf Group has maintained its position as one of the most successful German trade fair companies. In 2013, 25,126 exhibitors presented their products to around 1.2 million trade visitors at the events in Düsseldorf. In addition, there were about half a million visitors at various congresses. With about 50 trade fairs, including 24 No. 1 events in the five specialist areas machinery and equipment; trade and services; medicine and healthcare; fashion and lifestyle as well as leisure at the Düsseldorf site and about 80 to100 own events, joint and contracted events abroad, the Messe Düsseldorf Group is one of the leading export platforms in the world. Messe Düsseldorf GmbH is ranked No. 1 in terms of internationality in capital goods exhibitions. At the own events in the specialist area machinery and equipment, around 70% of the exhibitors and 60% of the visitors are from outside of Germany; overall, customers from more than 160 countries attend the trade fairs in Düsseldorf. The Group has a global network of sales offices in 132 countries (69 international representations) as well as competence centers in seven countries. For more information, contact Messe Düsseldorf North America, 150 North Michigan Avenue, Suite 2920, Chicago, IL 60601. Telephone: (312) 781-5180; fax: (312) 781-5188; email: email@example.com; visit www.mdna.com; subscribe to our blog; follow us on twitter.
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