Damm holds Annual General Meeting 2020
The Board approved the accounts for the financial year 2019, a year with a turnover of €1,385 million, an increase of 10% on 2018, and a net profit of €120 million
Damm held its Annual General Meeting for shareholders today at the Estrella Damm Old Brewery in Barcelona. Demetrio Carceller Arce, the company’s executive chairman, presented the 2019 accounts, which show a turnover of 1,385 million euros, an increase of 10% on the year before, and a net profit of 120 million euros, 7% higher than in 2018.
Demetrio Carceller Arce pointed out that the good results achieved in 2019 have made the company financially stronger, which meant it has been able to face up to the major impact of the covid-19 pandemic in the first nine months of 2020 on a sound footing. The hospitality industry, which is core to Damm's business, was closed for almost three months. Despite the gradual return to activity, the sector operated well below its usual levels during the summer. It is estimated that 20% of establishments foresee never re-opening. Beer sales in the food retail channel saw an increase of 21.5% between January and July 2020, according to data from Nielsen, but this increase does not compensate for the losses suffered by the brewing sector in Spain from the closure of bars and restaurants, as industry association Cerveceros de España warned.
The executive chairman of Damm especially highlighted the group’s enormous ability to respond and adapt to the crisis. As he reviewed the evolution and performance of the group, he thanked the nearly 5,000 people who are part of the company for their commitment and effort and for their work in minimising the impact of the health crisis of recent months.
During his speech, Demetrio Carceller Arce also described the initiatives carried out by the Damm Foundation, which made itself fully available to the health authorities to help with actions such as the delivery of water, dairy products, hydroalcoholic solution or furniture to different hospitals and health centres throughout the country. In total, the Foundation donated more than 300,000 litres of mineral water to health centres, hospitals and social entities in more than 20 provinces.
Commitment to the hospitality industry
Throughout these strange and uncertain times, which have had a major impact on the hospitality industry, Damm has been in permanent contact with its customers from the sector and put into practice a special support plan for all bars and restaurants. One of the company’s actions was to replace for free barrels of beer that had been started before lockdown. In total, Damm replaced more than 3.5 million litres of beer, the equivalent of 18 million cañas, small draft beers. The beer that was taken back was turned into sustainable energy, true to the company’s firm commitment to the circular economy.
Demetrio Carceller Arce also gave special mention to the growth and enhancement of Damm’s Bar Manager app, which has to date been downloaded by nearly 20,000 hospitality industry customers. Over the last few months, Bar Manager has become Damm's main communication channel with its customers. The app offers customers a way to contact Damm directly, to consult the company about purchases and promotions and has a section of useful information about the hospitality industry.
Corporate governance
Damm is firmly committed to the sustainable growth of the company, based on a circular economy model. With the aim of further developing and extending sustainable management criteria, and of continuing to create a business culture which has sustainability as a fundamental pillar, the setting up of a Sustainability Committee was also announced. This body is specifically designed to evaluate the sustainability of proposals and to ensure they comply with the guidelines issued by the Board of Directors.
Pillars of growth
The executive chairman of the company ended his speech by recalling that the group is immersed in a transformation process which has sustainable growth as its goal. In 2019, Damm launched its products in 13 new markets and is now in a total of 133 countries. Keeping up international expansion, which currently accounts for 30% of the company's business, is a key platform for the group's growth in the coming years.
Damm is a job-creating company, with a growth in personnel of approximately 10%. With constant innovation in connectivity, training and digital culture in recent years, the company has reached the highest standards of Industry 4.0. It has implemented innovative technologies throughout the value chain, from the beginning in agriculture to relationships with suppliers and customers.
