The company Kores Europe, which produces office and school supplies in Strmilov, South Bohemia, has completed a new warehouse. The costs were CZK 500,000 (about 12.1 million CZK), there are over a thousand pallet places. Last year, the company’s turnover rose by about a tenth year-on-year, but some raw materials doubled last year. Last year, the company grew a lot in sales in Britain, according to Helmut Bruckner, the company’s executive.
Last year, the turnover has not yet reached the numbers of 2019. This year, it could surpass them. “There was a lot of uncertainty in 2020 because covid was new to everyone. Last year it was generally more normal, but distribution channels were limited, we had big problems with logistics, transport and a huge shortage of raw materials and chemicals began. We had to look for new suppliers,” the executive said. Transport from Asia and other countries was stuck, containers were missing. In 2020, the company had sales of products, services and goods of CZK 243.4 million and a profit after tax of seven million crowns, according to the annual report.
The company produces 14 million glue sticks a year, of which over two million are sold in the Czech Republic. They also make liquid adhesives, markers, highlighters, crayons, erasers, corrective agents and stamp inks. All plastic parts are manufactured by itself, it has seven injection molding machines. But like others, it is facing rising costs. Plastics doubled their prices last year, chemistry by 30 to 40 percent, cartons by about a fifth. “At one time, the chemicals weren’t there at all,” the executive said. The company had to adjust the composition of some recipes. It is also affected by the euro exchange rate. It has increased the price of five percent for export customers.
The company has about 30 percent of turnover in the Czech Republic and Slovakia, the rest is exports. The main export countries are Russia and Germany. Thanks to sales through Amazon, the company grew by 300 percent in Britain last year. She also needed a new warehouse in Strmilov for exports. “It was necessary, we need more space for logistics. Export customers want better service and shorter delivery times,” said the executive. In the Czech Republic, sales have been growing at a similar pace over the last three years as in other countries.
The year before, when the pandemic broke out, Kores began producing disinfectants. The company donated about 200,000 bottles with a volume of 28 milliliters to people on the front lines. Jana Hubálková, the company’s marketing director, has recently expanded her range with hand disinfectant gels and surface disinfectants with an aloe vera scent.
“Kores employs about 100 people. Wages have risen by nine to ten percent this year. The gross working salary ranges from CZK 22,000 to 25,000, fluctuation is low,” the executive said.
The Austrian family group entered the Czech market in 1993. The importance of the Czech Republic for it increased three years later, when a production plant was established in Strmilov. The company has two of them, in addition to southern Bohemia and Mexico. In 2012, it built a new hall to expand capacity. There is also a development and logistics center for Europe in Strmilov. The company is based in the area where there used to be a textile factory that made carpets.
The parent company was founded in 1887 by Wilhelm Koreska in Vienna. The group is represented in more than 85 countries and employs about 850 people.
Source: CTK
