Increased sales with environmentally friendly products

Sales performance for the 2016 fiscal year grew at 7.0% (2015: 3.5%, 2014: 1.7%, 2013: 7.3%) of gross sales revenue compared to the previous year.
VAUDE is not subject to disclosure requirements. For competitive reasons, we have chosen not to publish any figures on economic performance.

This shows that VAUDE is experiencing above average growth in a stagnating market. This can also be seen in direct comparisons with the European outdoor market based on growth rates of the European Outdoor Group (EOG).

In the past few years we have also achieved good sales and were able to maintain our cost structure. Our inventory turnover increased by a value of 4.6 in 2016.

Banks are key stakeholders for VAUDE. The company’s financing options are determined based on their ratings. As part of our bank financing, we undertake to comply with covenant requirements. These include figures such as the equity ratio and debt ratio. In 2016, we were able to maintain all requirements.

Our economic equity ratio was 47.5% on 31.12.2016 (2015: 47.7%; 2014: 39.2%, 2013: 36.4%); the share of liabilities on the balance sheet on 31.12.2016 was 66.5% (2015: 67.1%; 2014: 69.2%, 2013: 73.8%).

This shows that we were able to maintain our economic equity ratio close to the previous year and reduce the percent of liabilities.

1. Financial independence: 

The intergenerational preservation of the family business is our ultimate goal. Financial independence gives us flexibility for our business practices and ensures the future of the company over the long term. 

2. International competitiveness:
Competition in the outdoor industry is extremely dynamic, international and has been determined by acquisitions and debt capital for the past few years. The size of the company and its associated brand strength are relevant to be successful in this competition. Our goal is to be internationally competitive as a strong, sustainable, European brand. 

 
3. Efficient economics:
We are striving for healthy growth in order to efficiently do business in the three main business areas of our corporate structure. At the same time, we want to optimize production resources and capacities and benefit from economies of scale. 

 
4. Increased influence for greater sustainability:
Growth also helps us to increase our influence on production and material suppliers, which we can use to implement further sustainability measures.

The objective system is arranged according to the perspectives of the "Balanced Scorecard". Measures and indicators are defined for each goal.
In a multi-step process, the achievement of objectives and status of the budget and economics planning is monitored. This process includes the following steps:

1. Senior Management executive session in January: 

Management analyzes economic performance in the product areas, analyzes risks within and outside the company as well as the competition, checks the validity of the objectives set and sets strategic guidelines for the next three years.

2. Division manager committee executive session in February: 

The Division Managers define measures for the objectives set for the following year and check the previous achievement levels.

3. Distribution of the goals: 

Goals, measures and indicators are broken down by departments.

4. Ongoing controls:

Goal achievement levels are checked several times a year. The review indicators for some key figures only take place at the end of the year. 

5. Close connections for budget planning: 

The budget planning process is closely connected with the corporate management and runs parallel to the goal process. Budget planning takes place in the first half year, including the budget for the following year’s objectives. In several rounds of voting, plans are adapted to the possibilities.

6. Finalization of goals and budgets: 

In a two-day meeting in September, both the objectives for the following year and the budget are finalized by department heads.

7. Budget approval: 

The final, 100 percent approval of the budget in each case comes into effect only after ascertaining the previous year’s results and the winter preorders. If the planned annual results are unlikely to be met on this basis, those responsible can only have 80% of their budget.

8. Ongoing controls, for budgets as well: 

Similar to our reviews of the goal achievement status, budget compliance is verified during the year.

Sales are also carefully planned and consolidated at the top level. In addition, we regularly collect financial figures which are used to operationally guide the company. The most important figures are reconciled, evaluated and analyzed for deviations from the planned system on a monthly basis by management and controlling division. This is a requisite for the management to identify trends and developments and, when necessary, guide measures to offset adverse developments and reinforce positive trends.