Internationalisation and innovation, keys to the evolution of MONDRAGON cooperatives in 2013

Corporate

The international profile of the businesses within the cooperatives is accentuated. International sales grow by 6.7% and now account for 71.1% of total sales. The cooperatives devoted 136 million Euros on R & D & I and have 467 patents for inventions which have enabled them to invoice 628 million for new products and services. Investments made in 2013 reached 394 million Euros, nearly doubling those made only two years ago. The Ebitda indicator of its core business amounted to 1,272 million, equivalent to 10.9% of the global sales figure. The cooperatives, as a whole, maintained the bulk of their average workforce, amounting to more than 74,000 jobs in homogeneous terms.

Sep 05, 2014

In a year marked by an extremely complicated environment at national level, characterised by sluggish consumer spending and a fall in GDP of 1.2%; the slow progress of international economies; and at an internal level, the cessation of activity by Fagor Appliances, the MONDRAGON Corporation ended 2013 with a level of sales that, in comparable terms, were 2% lower than that achieved in the previous year, with these reaching 11,582 million Euros. The slowdown in the domestic market was once again offset by the improved performance of the international markets, with a sales increase of 6.7%.Indeed, the strategic commitment to the internationalisation of the cooperatives' activity was a decisive factor in their development in 2013. The industrial area ended the year with international sales (3,411 million Euros) accounting for 71.1% of total sales, confirming the ever-increasing international activity of the group. Furthermore, the cooperatives significantly increased their foreign presence by opening 17 new plants abroad - now having 122 - in countries such as China, India, Brazil, Mexico, USA and Saudi Arabia. The group of cooperatives now employs about 11,000 people abroad.

Total sales of the industrial sector reached 4,796 million Euros which, in comparable terms, represents an increase of 1.2% compared to sales achieved last year.

The Ebitda of the industrial area reached 517 million Euros, a 5.3% increase over the previous year and representing a significant 10.8% of the sales figure.

In relation to the global figures of the Corporation, in comparable terms, it indicates that its sales were 11,582 million Euros, with a contraction of 2% compared to 2012, mainly due to the sluggish domestic market, once again offset by the increase (6.7%) in international sales. The Ebitda in 2013 amounted to 1,272 million Euros, 3.6% less than the previous year but representing a solid 10.9% of turnover.

With regard to employment, excluding the jobs associated with Fagor Appliances whose activity ceased in October, the group of cooperatives has managed to increase its average staff (0.1%) reaching 74,061 jobs.

Another significant detail of 2013 was the investment made throughout 2013, which amounted to 394 million Euros, 24% higher than in 2012 and almost doubling those made just two years earlier.

Regarding the evolution of the Industrial Sector in the first half of 2014, it is worth noting that sales have been slightly lower than those recorded in the same period last year, mainly due to falling exports which have been balanced by a significant increase in foreign production (6%). With regard to employment, 820 new jobs have been created, mostly in the international production subsidiaries, although 15% correspond to production plants at home.

Reflection on the future

Lastly, it remains to mention that corporate bodies have embarked on a process of analysis and reflection on the future. In this process, led by the MONDRAGON Management Committee, an assessment of the current situation is being made, moving forward concerning the courses of action for the coming years. The final report on these reflections will be presented at the next 2014 Congress, the date of which has yet to be determined.