Helsinki / FI. (pg) In 2022, Paulig’s revenue grew by 14 percent and exceeded EUR 1 billion for the first time ever. This revenue growth was driven by price increases and the acquisition of Liven, a Spanish-based snacks company. However, the global increase in the cost of raw materials, energy, transportation and other costs – further accelerated by the war in Ukraine – resulted in weakened operative profitability.
Comparable operating profit was EUR 44.2 million compared to EUR 95.3 million in 2021. The biggest factor affecting the decline in comparable operating profit was the significant increase in the price of green coffee. IFRS operating profit was EUR 5.8 million, including the write-off of associated company (Fuchs) shares and the exit from the Russian business. Furthermore, the poor performance in financial investments had a negative impact on net profit, which was EUR -19.9 million.
Key figures in 2022
- Paulig’s revenue was EUR 1,105.5 million (966.3)
- Of the total revenue, 52 (54) percent came from the Nordic countries and 48 (46) percent from other countries
- Comparable operating profit was EUR 44.2 million (95.3), which was 4.0 percent of revenue (9.9)
- IFRS operating profit was EUR 5.8 million (95.3)
- Net profit was EUR -19.9 million (85.3)
«In very many ways, 2022 was a historic year for Paulig. The company’s revenue exceeded EUR 1 billion – a first for Paulig – and, in a very turbulent year, we bought and divested businesses and opened a new factory in Belgium. Whilst our revenue grew significantly on the back of numerous price increases, global cost inflation outpaced us, resulting in weakened profitability compared to the previous year. We will continue to drive growth and we expect both revenue and profitability to improve in 2023,» states CEO Rolf Ladau.
To accelerate growth in the Tex Mex and Snacking categories in Europe, Paulig acquired Liven, an innovative Spanish-based snacks company. Paulig also opened a new tortilla factory in Belgium to strengthen its position as the Tex Mex market leader in Europe. Furthermore, Paulig divested the Gold+Green brand, intellectual property and the R+D function. Following the outbreak of the war in Ukraine, Paulig made the strategic decision to withdraw from the Russian market and finalised the sale of its Russian business in May.
Strong growth in the Tex Mex category
In the Tex Mex category, sales grew by 10.2 percent in 2022. Paulig’s ambition is to double its European Tex Mex business, and the new tortilla factory in Belgium together with the acquisition of Liven will strengthen Paulig’s position as the market leader in Tex Mex in Europe, as well as support growth in the snacking category. In the coffee category, Paulig’s coffee sales grew by 16.4 percent. Paulig continued to innovate and launched new variants. In addition to this, Paulig Mundo coffees achieved Carbon Neutral certification as the first Paulig product ever. In Finland and the Baltics, total coffee sales volumes were lower compared to the previous year, primarily due to the challenging market conditions in the category and high inflation. Additionally, our sales in the flavouring category were in line with expectations.
Several achievements in sustainability
In 2022, Paulig made significant progress towards its ambitious sustainability targets, which are based on the UN Sustainable Development Goals. The company´s ambition is by 2030 to reduce the greenhouse gas emissions from of its own operations by 80 percent and from value chain by 50 percent from the 2018 baseline.
Paulig also extended the work to drive carbon reductions in the value chain. The company continued its collaboration with Lantmännen to reduce carbon emissions in the wheat value chain. In 2022, coffee climate projects were started in coffee origins to encourage the implementation of climate-smart farming practices. These projects are a joint effort between Paulig, its partners and coffee farmers.
In its own operations, Paulig focused on achieving carbon neutrality. By the end of 2022, seven out of eleven factories had achieved CarbonNeutral® building certification. Furthermore, the company has reduced its greenhouse gas emissions by 18.5 percent from the 2018 baseline in its own operations.
Paulig´s ambition is that, by 2030, 70 percent of net sales comes from products and services that enable the health and wellbeing of people and the planet. In line with this goal, Paulig’s nutrition framework was published in early 2022. The framework is based on a further developed model of the front-of-pack nutrition label Nutri-Score and Paulig’s product portfolio has been evaluated against the framework. The framework is integrated into product development and innovation processes.
In 2022, Paulig began the development of a company-wide human rights due diligence process. This framework aims to guarantee the protection of human rights across the company’s operations and value chain.