Progress report 2021

Adding value
to your brand

CEO Comment

“Our employees have done a fantastic job adapting to the challenges”

Facing the global Coronavirus pandemic, we had to adapt to a new reality that no one was prepared for. In March last year we estimated that sales would fall by 30 percent for the full year. We were wrong. Our employees have done a fantastic job adapting to the challenges posed by the pandemic while keeping in mind the vision and commitment we made to integrate sustainability. At the end of the year the decline was ultimately only 9 percent. 2020 has shown the world that we all need to continuously improve and adapt to be more fit for the future – whatever it may be.

Krister Magnusson, CEO

2020 in brief

Higg index

To better measure the environmental performance the work with Higg Facility Environmental Module (Higg FEM) was started in Nilorn East Asia, Portugal, Bangladesh and Turkey. It was also implemented with a majority of the preferred suppliers.

Learning organisation

We remain a learning organization. 2020 was the year where we focused on trainings with over 10 internal webinars in topics such as “Using recycled LDPE for Polybags”,” FSC™ – Forest Stewardship Council” and “GOTS – impact on labels, trims and packaging.”

GRS

We deepened our commitment to recycling. We continued our GRS certification, with Nilorn Bangladesh applying late 2020 and Nilorn East Asia beginning of 2021. Nilorn Portugal already holds a GRS certificate since 2019.

Sales 2020 in SEK

Operating profit 2020*

Operating margin 2020*

*Excluding items affecting comparability

Numbers

During the last 10 years Nilorn has grown by 92.6% with an average operating margin of 10.9%.

Sales

Operating profit

We are global

11

Offices

6

Offices/
Manufacturing bases

7

Sales representation

Employees

Gender split

%

%

Sustainability

Strategy

Nilorn sustainability strategy More Fit for the Future is based on the company’s mission “Adding value to your brand” together with the global Sustainable Development Goals (SDGs) and a materiality analysis done in 2019. The strategy is built around three pillars: clients, production and supply chains, and employees.

We are committed to minimising the way our business could, in any way, slow the transition towards the future envisioned by the 17 SDGs. We have identified the following six as goals that our business has the most impact on.

Sustainability

Towards a sustainable value chain

We aim to be a leader in sustainability and in our work we integrate a sustainability perspective in the various parts of the value chain with the ambition to create a positive impact.

Going Digital

Digital labels will be the building block for a more circular business model.

The challenges of 2020 did not slow our work with transparency and traceability. We deepened our strategic focus on technologies such as RFID, NFC and QR-codes that give full transparency to our clients and end-customers on products’ social, environmental and governance standards. These technologies prevent as well the counterfeit of our clients’ products and help increase efficiency in logistics to have their products in the right place, at the right time.

Vision

To be the best label and branding company in the world

Nilörn has had good development over the last 10 years and is now focusing its efforts to take the company to the next level. This means creating even more structure when it comes to sourcing, CSR, IT-support systems and sales. The goal is to achieve good synergy, through being an international group and, at the same time, being flexible and close to our clients. The best of both worlds.