05.05.2020 — In 2019, consolidated group sales increase in all sections of the company by a total of 6.3 % / Strategic development is driven by the establishment of Dussmann Technical Solutions / Assessment of the impact of the corona crisis on the financial year 2020 is not yet possible
The Dussmann Group, a leading global multi-service provider achieved record consolidated group sales of 2.13 billion € in 2019, an increase of 6.3 %, and significant progress was made on strategic realignment. The corona crisis has demonstrated the value of the Dussmann Group’s expertise in cleaning, hygiene and disinfection and as an operator of care facilities for the elderly. In line with corporate strategy “Next Level”, the company has expanded its service range through five company divisions and their respective clientele, which is proving to be an advantage.
Wolf-Dieter Adlhoch, Dussmann Group executive board spokesman said “2019 was a sound financial year with satisfactory earnings. By founding our new company division, Dussmann Technical Solutions, which enables us to support our clients with building systems and plant engineering, we have taken an important step forwards in the strategic development of the company. We will continue to diversify our business model as this puts us in a strong position, particularly in the current situation.” Adlhoch concluded: “Many of our services such as cleaning, disinfection or nursing and care are classed as essential during the corona crisis. Nevertheless, the shutdown of operations by some of our clients has, of course, affected us too and we will see consequences. It is, as yet, too early to assess the economic impact of the corona pandemic on the current financial year”.
Catherine von Fürstenberg-Dussmann, chairwoman of the Dussmann Group board of trustees summarized the current situation: “Stability, agility and reliability have always been important cornerstones of our activities as a family enterprise and in times of crisis this is more so than ever. Our employees are doing a great job under enormous pressure. Those who come into direct contact with the virus during their work and selflessly battle its spread are the real heroes, not only at this time.”
The Dussmann Group contributes in many ways to overcoming the crisis
The Dussmann Group contributes a wide range of expertise and resources to meeting the corona crisis and mitigating its impact. “Whilst many companies have been forced to discontinue or downsize their operations, this has frequently not been possible for us” explains Adlhoch. “In many hospitals and care institutions, our employees carry out cleaning and disinfection to enable doctors and nurses to work under hygienic conditions and the teams in our Kursana facilities continue to provide care for residents.”
In other countries, too, Dussmann plays a role in national crisis management. Italy, where the Dussmann Group has its largest operations outside Germany, was hit particularly hard by the corona crisis and Dussmann teams have been battling the spread of the corona virus and its consequences since the outbreak of the disease. This includes cleaning in hospitals in the badly affected Lombardy region, disinfection of the vaporetti and ferries in Venice and catering in a field hospital set up to care for Covid-19 patients in Bergamo, a worldwide epicenter of the corona crisis.
It is not only healthcare institutions but also clients from industry who need the services. For example, a cleaning team from the facility management division, Dussmann Service, carried out hygiene cleaning on the premises of long-standing Dussmann client, Webasto, a leading automotive supplier with headquarters in Stockdorf, after several employees there were tested positive with the corona virus at the beginning of 2020. These were the first known cases in Germany.
Following the cleaning mission, Dr. Holger Engelmann, CEO of Webasto, commented: "The Dussmann teams disinfected the entire site. Stockdorf was probably the microbiologically cleanest Webasto site in the world".
Essential nursing and childcare services
The company division Kursana, which operates 116 nursing and care facilities for the elderly initiated the preventive measures stipulated by the Infection Protection Act to protect residents and employees from coronavirus infection. There has been a ban on visitors since mid-March and tablets have been purchased to enable residents to maintain at least digital communication with their families. The concept for the prevention and control of infectious diseases is based on the recommendations of the Robert Koch Institute and takes the form of a step-by-step plan, which is implemented in close coordination with the authorities. At Dussmann KulturKindergarten facilities, educator teams provide emergency childcare for personnel in essential occupations, for example at hospitals.
The Dussmann Group seeks to minimize impact on the workforce
The Dussmann Group strives to minimize the impact of the corona crisis on its employees by means of a number of measures; some employees are temporarily assigned to other service operations such as care facilities or hospitals, which are not subject to closures. Where unavoidable, the company makes adjustment through utilization of time credit and introduction of short time working.
In 2019, the Dussmann Group increases sales in all company divisions
In 2019, consolidated group sales increased by 6.3 percent to 2.13 bill. € (2018: 2.01 bill. €). Each of the company divisions made a contribution. The EBITDA on Dussmann Group consolidated group sales was 5.0 % in 2019 (2018: 6.2 %). Total group sales which include managed and intercompany sales increased to 2.40 bill. € (2018: 2.34 bill. €).
The company division Dussmann Service, which includes the sales of Dussmann Technical Solutions in addition to integrated facility management, contributed 1.67 bill. € to consolidated group sales. This represents growth of 6.6 % (2018: 1.56 bill. €). This was largely due to major new service contracts won by the Dussmann Service subsidiaries in Italy, Luxembourg and Austria. The acquisition of the electrical engineering specialist, STS, in the summer of 2019, and the inclusion of Gaetano Paolin S.p.a., Padua, purchased in 2018, also contributed to the increase. The company division Care & Kids, which combines Kursana and Dussmann KulturKindergarten, grew by 5.3 % contributing 433 mill. € to consolidated group sales (2018: 411 mill. €). This was due, among other things, to two newly opened Kursana facilities in Eschenburg (Hesse) and Hamminkeln (North-Rhine Westphalia). The sales at KulturKaufhaus increased by 2.8 % to 36 mill. € (2018: 35 mill. €).
Significant strategic progress
The year saw significant progress on the implementation of group strategy Next Level; in summer 2019 the newly acquired STS Group, an electrical engineering specialist with head offices in Ireland, was successfully integrated into the newly founded company division, Dussmann Technical Solutions (DTS). As a partner to the pharmaceutical industry, the life science sector, data centers and energy providers, STS has operations across Europe and the Middle East. In addition to STS, DTS business units are the refrigeration and air-conditioning specialist, DKA (Dresdner Kühlanlagenbau) and the elevator manufacturer, HEBO which joined the Dussmann Group in 2013 and 2016 respectively. “DTS expands our service portfolio; we are increasing our activities in the high-margin business for technical building systems and equipment which complements our traditional core business of facility management” said Catherine von Fürstenberg-Dussmann.
The Dussmann Group sharpened its regional focus, divesting operations in Latvia in autumn 2019, and in China and Hong Kong at the start of 2020. The objective of this portfolio streamlining is to concentrate resources on Europe, the Middle East and selected Asian markets.
With 64,500 employees in 22 countries, the Dussmann Group provides services for people, by people generating consolidated group sales of 2.13 bill. € in 2019. The largest service division, Dussmann Service, provides technical services, catering, security, reception, cleaning, surgical sterilization, commercial facility management and energy management from a single source. Dussmann Technical Solutions (DTS) supplies solutions for the entire lifecycle of technical systems and buildings from engineering services and planning, through construction to maintenance and repair. DKA constructs, installs and services all types of refrigeration and air-conditioning equipment and systems. HEBO Aufzugstechnik GmbH constructs premium elevators and modernizes, services and repairs existing elevators. Kursana nurses and cares for 13,600 seniors. The Dussmann Group operates the media department store Dussmann das KulturKaufhaus in Berlin and in-house corporate child-care at Dussmann KulturKindergarten facilities. More information at news.dussmanngroup.com. Follow us: Twitter and LinkedIn