Sibo Group

Quality and sales

In the early years the Company employed only 10 members of staff, working from a small workshop utilising five machines to make plastic products, compared to a total of 256 employees today. Ninety percent of employees live locally and their average age is 38. “More than 50% of staff were first-time job seekers when first employed here, and staff turnover in this particular segment is almost non-existent, while overall staff turnover has been reduced to around five percent. In addition, we sponsor 10 students and devote a lot of time, energy and funds to the systematic training of all our employees. Since innovation is the key to our future success, even with such a small, and for some rather insignificant product as tops, in the tools and construction departments we employ individuals who work on the development of new products,” explains Boštjan, adding how proud he is of his dedicated workforce. Boštjan is eager to stress that all 256 employees are responsible for both departments: quality and sales. This focus on quality in all phases of production and sales processes (development, production, implementation and sales activities) has been confirmed by the award of the ISO 9001/2000 standard, which the Company obtained as early as 1999.

“Tradition has remained strong in the Company, spanning its 47 years of perseverance, dedication and commitment to following a common path,” proudly adds Boštjan. “Times have changed and so have working methods and the methodologies used.”

Challenges and achievement of objectives

Boštjan remembers his father saying, as he handed over the Company to him: “Everything you earn is yours, including both success and failure. The responsibility is yours. Don’t ask others whether they have done something wrong. Ask yourself instead what you could improve. Your employees are chosen by you, they are an integral part of this company and key to its success.”

As a director and owner, Boštjan has been successfully managing SIBO G for the past 21 years. During this time the company assumed a new role and he had to overcome a number of challenges.

“When I started, it was a rather small enterprise and I remember how as a student in high-school I made a commitment to myself that once I became the company’s manager, I would ensure sufficient growth to employ no fewer than 120 staff,” says Boštjan. After 10 years of managing the company, in 2003 he achieved the first of his goals set during his high school years: to raise the headcount from 10 to 120. “In 2005 we appointed a professional manager to manage the business; however, he only stayed with the company for nine months. Our expectations and visions of the company's future differed and we went our separate ways. This meant that I had to focus again on the day-to-day running of the company. In 2009 I appointed a new director; however, we parted after three years and I am again at the head of the company, successfully managing its business.” Boštjan is eager to stress how managing a family company of this size is a rather large responsibility: “We have a responsibility not only to our suppliers, customers and employees, but also to all other businesses participating and cooperating with us. It is for this reason that we need to be successful, and in recent years we have achieved this particular goal.”

Twenty-one percent EBITDA

“It is usual in Europe for competitors to report EBITDA of between eight and nine, and possibly up to 20%. Ours has been no lower than 18%. Last year's EBITDA reached almost 21%, while according to current figures, this year's EBITDA will be even higher, projected to reach 22%,” Boštjan proudly points out, adding that such an excellent outcome is the result of the overall organisation of the company. “Around 75% of production is accounted for by our own products, meaning that we do not rely only on the instructions of one or two buyers, but that our sales are currently dispersed among 190 buyers. Development and production of our own goods enables us to set prices independently. The result of our work is visible in significantly higher EBITDA, compared to our competitors in other countries,” points out Boštjan. 

Strategy and objectives

The company's business strategy is directed towards growth by pursuing its goal of becoming one of the leading suppliers of plastic tops, high-tech tools used for producing plastic tops, technical thermo-plastics and products used in medical and pharmaceutical industries. Since the company is investing largely in development, it is no surprise that Boštjan's vision for the future is clear.

“In the field where we are the experts, we intend to become a truly global player with an even higher market share.” To this end, the company has, with its customers, jointly outlined good strategic plans and agreed on new products and further new projects scheduled for the next year or two years. “The economic life-span of a top’s design as well as packaging for the pharmaceutical and medical industries is a minimum of 10 years; sometimes even 15 or more. Once new business deals are agreed, we lose only a relatively small percentage, while every 10% of new deals translates into growth for us.”

It is therefore no surprise that the company has been profitable and growing continuously for a great number of years. In addition to excellent business results, it boasts a large number of awards: in 1997 it was awarded the prize for exceptional business and entrepreneurial achievements by the Slovenian Chamber of Commerce, followed a year later by an award from the inter-municipal chamber of commerce of Gorenjska. In 2003 it was awarded the silver coat-of-arms of the Škofja Loka municipality for successful performance and development, and in 2011 Boštjan was voted Entrepreneur of the Year. “I am driven by my aspiration for the company to be better and bigger,” he says.

Future prospects

The company realised 28 million euros of revenue in 2013, which grew to 31 million in 2014. The company is facing organic growth of between 10 and 12%, as well as growth fuelled by acquisitions of competitors and new long-term projects agreed with existing and new customers, which will ensure the company’s future growth. In the past seven years, the company has completed five takeovers, while for the future the plan is one takeover every two years. Currently, they are also planning new plants in Europe, Mexico and Asia.

“We supply tops to the world’s leading companies and we have agreed long-term strategic contracts with four of our major customers: GlaxoSmithKline, Unilever, Procter & Gamble and Colgate.” The fact that Boštjan's wife, sister and niece are also employed by the company is more proof that this really is a family enterprise. We also touched on the topic of the division between work, family and spare time, and Boštjan feels that for him the dividing line has been all but erased: “My work in the company has become my way of life. Work doesn't stop after eight hours and quite often I bring work home to keep up to date with the business and ensure everything runs smoothly. Employee relationships in the company are professional and any family ties are forgotten during the working day. Every one of us has specific obligations and no one has any special privileges.”

Summary

Sibo Group in eight words: “Family, satisfaction of business entities, growth, profitability, export.”