Herend Porcelain

New Year greetings from the CEO

Dear Reader,

The Herend Porcelain Manufactory Ltd., as in recent years, closed another successful and profitable year in 2019 under my leadership. Today, Herend has become a world-leading porcelain manufactory: looking at the profitable operation, the number of employees and the number of export markets in nearly sixty countries, we can safely say that. If someone is looking to buy hand-painted, unique, high-quality porcelain, Herend porcelain has become a must.

The fact that the Budapest Stock Exchange ranked the Herend Porcelain Manufactory as one of the 50 most successful companies in Hungary in 2019 also confirms the successful company building efforts of the past decade.

In keywords: profitable operation, financial stability, 7% profit margin, further increase in equity, improved efficiency, future-building investments, 19% increase in export sales, significant real wage increase, successful branding, and balanced operation. These were the characteristics of the Company’s operations over the past year. It is welcome that we have been able to increase our production headcount, and the value of the porcelain produced has exceeded the level of the previous year. We have had the production capacity and human resources needed to operate successfully. In 2019, we paid a 12% dividend and an additional 100,000 HUF MRP (Employee Stock Ownership Program) bonus to our shareholders. During the year, the general meeting of the Company re-elected the senior executives.

Besides successful economic operation, I paid special attention to the continuation of our cultural mission, both at home and abroad, which can be defined in the thought of creating value – preserving value – passing on value. We organized 11 cultural exhibitions last year, four exhibitions at the Herend Porcelain Museum, five exhibitions in Hungary outside Herend and two foreign Herend exhibitions in Prague and Ankara. Herend has contributed to a positive country image. I received countless international diplomatic visitors at the Manufactory, and one of the highlights was the visit of a member of the Japanese imperial family, Princess Kako.

The Herend Porcelain Manufactory is also a social unit based on a pillar of solidarity. In 2019, we made real wage increase again, since 2011 there has been about 60% wage increase in the Manufactory. The extra-wage per capita welfare benefits also increased last year (770,000 HUF per person). Thanks to the profitable operation, at the end of the year all our employees received over 250,000 HUF for Christmas. In 2019, we were able to provide income and livelihood for nearly 750 employees, suppliers, and through them, their families. The Company’s budgetary, accounting and labour relations were well organized, the Company was legally operating and was a significant tax payer (approximately 1,600 million HUF).

We paid special attention to train new professionals maintaining our own training school; we employed dual education students and announced artistic scholarships for our innovative product development, we were open to artists from Hungary and abroad, and collaborated with the Hungarian Design Council and joined the event DesignWeek.

One of the Company’s biggest expectations for 2020 will be the appearance at the Frankfurt Trade Fair Ambiente setting up a new Herend Stand, which will be innovative, trendy and elegant, announcing that Herend is today the world leader in artisan porcelain-making. In the year ahead, we will continue to develop our brand store network and further build our brand image.

In 2020, we will continue to do our job, respect our past, connect the present with the future and let the Providence love us!

Dear Reader, on behalf of the co-leaders and the Herend Porcelain Manufactory’s entire creative community, I wish you all the best, strength, health, happiness, optimism and much success for 2020!

Respectful greetings from Herend in January 2020,

Dr Attila Simon
CEO

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