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Messe Düsseldorf Group reviews 2014 financial results

Messe Düsseldorf Group can look back on a successful financial year in 2014. The entire group achieved sales worth Euro 410 million (2014: Euro 323 million).

The sales of Messe Düsseldorf are about 4 percent above target, totaling Euro 340 million (2014: Euro 258 million), of which Euro 44 million was generated outside of Germany. Messe Düsseldorf expects an annual after-tax profit of over Euro 30 million (2014: Euro 10.9 million).

Due to the positive development of turnover, costs and good equity earnings, the 2014 annual result for Messe Düsseldorf is higher than planned. This lays the foundations for continued successful business development and new investments. Due to the trade fair cycle in 2015, a decrease of sales to approximately Euro 230 million is expected this year.

“Thanks to convincing cost management and working without subsidies we were able to increase our exhibition results in 2014. We are very satisfied,” stated Werner M. Dornscheidt, president and CEO, Messe Düsseldorf. “The highlight in 2014 was interpack with 6 percent more visitors and sold-out exhibition space – which was a first. Our other events in Düsseldorf were also able to record growth.” As in previous years, the profits will be used for the modernization of the Düsseldorf exhibition center and the further development of the worldwide trade fair portfolio.

“Competition among trade fair organizers, especially in Germany, is becoming harder and harder. Unfortunately, it is also considerably distorted by the sometimes large subsidies from public sources,” added Dornscheidt.

Messe Düsseldorf is one of just two companies that works without subsidies generating investments from its own sources.

By the end of 2014, the company constructed or modernized nine of 19 halls. This year, the work will be continued on two other halls. In addition, the Congress Center South will be gradually updated over the next few years. By 2030, Messe Düsseldorf wants to have the renovation of the exhibition center completed, investing about Euro 600 billion between 2015 and 2030.

Financial year 2014: leading world trade fairs in Düsseldorf boost sales and internationality increases again

The largest sales generators in 2014 were the No.1 trade fairs interpack, EuroShop, MEDICA, ProWein, glasstec, boot, wire/Tube and CARAVAN SALON. A premiere last year was the PUMP SUMMIT, held concurrently with Valve World Expo. A total of 34 events took place at the Düsseldorf exhibition center in 2014 (2013: 27), consisting of 19 own events and 15 partner/guest events. Some 31,000 exhibitors and 1.4 million visitors participated in the events in Düsseldorf and impressively confirmed the importance of trade fairs as a marketing tool.

The proportion of international exhibitors at events in Düsseldorf was once again very high and improved, reaching an average of 69.4 percent (previously 67.1 percent).

“We see the high level of international exhibitors and the ever growing number of decision-makers as a key quality feature at our events,” explained Dornscheidt.

This was particularly underscored by ProWein (82 percent), MEDICA (77 percent), the world’s largest medical forum, wire/Tube, international trade fairs for cable, wire and tubes as well as interpack, the world’s leading trade fair for packaging technology (all 75 percent). The proportion of foreign visitors rose to an average of 37.3 percent (previously 36 percent). The highest figures were achieved by interpack with 66 percent and the retail technology trade fair EuroShop with 63 percent of foreign visitors.

97 of own events and participations abroad

The development of Messe Düsseldorf’s foreign subsidiaries was also positive. The largest shares of proceeds were generated by its subsidiaries in Brno, Czech Republic (Euro 38 million), Moscow (Euro 8 million) and China (Euro 6.3 million). A total of 97 own events and participations were staged abroad. In 2015, 97 events and participations are also planned outside of Germany.

Outlook: strategic expansion of activity and development of the international event portfolio

Internationally, Messe Düsseldorf continues its course for growth. New events last year included TOS+H EXPO (health and safety in the workplace) in Turkey and MEDICAL WORLD AMERICAS CONFERENCE AND EXPO in Houston, TX. Both in China and Japan spin-offs of the conference and trade fair Energy Storage were held for the first time. The second staging of the Food Processing & Packaging Exposyum in Nairobi, Kenya increased exhibitor numbers from 21 to 65 and over 1,000 experts from Kenya and neighboring East African states attended.

In 2015, the packaging portfolio of Messe Düsseldorf will be extended on the Chinese market with the new trade fair quartet SWOP – Shanghai World of Packaging. The already established CHINA PHARM, the China International Pharmaceutical and Cosmetic Industry Exhibition, will be complemented for the first time by the new trade fairs PacPro Asia, FoodPex and BulkPex. C-Star 2015 (retail) in Shanghai will be a spin-off of EuroShop.

Furthermore, Messe Düsseldorf will organize India SMART GRID Week in Bangalore as well as Metal Middle East in Dubai. New at the exhibition center in Düsseldof will be EuroMold, the World Fair for Moldmaking and Tooling, Design and Application Development, which was formerly held in Frankfurt.

Messe Düsseldorf group sees positive signs of development in Indonesia and Brazil. The founding of a Brazilian subsidiary is currently being discussed. Plans for possible collaborations in Macau and Iran are also underway.

Development of the corporate strategy: Messe Düsseldorf 2030

“We are currently working on the ‘Messe Düsseldorf 2030’ concept,” reported Dornscheidt.

The focus is on the strategic expansion of business activities both nationally and internationally and the optimization of the global market quality of the Düsseldorf events in terms of brand management and customer services.

“Messe Düsseldorf sees itself as a partner of industry and works closely with its representatives to continually improve their events,” stressed Dornscheidt.

Posted in International, World
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