Food company Dr. Oetker has reported sales of approximately €3.7 billion in its 2021 financial year, which it described as ‘stable’ compared to the previous year, despite markets normalising after the pandemic in 2020.
The company noted that the 2021 financial year continued to be shaped by ‘increasingly challenging consequences’ along the entire supply chain.
‘As a result of the war in Ukraine, companies are witnessing an intensification of the difficult procurement situation in the current financial year, and are recording significant cost increases for raw materials,’ Dr. Oetker added.
‘Challenging Economic Conditions’
Dr Albert Christmann, chairman of the international management board of Dr. Oetker, commented, “Against the background of the very challenging economic conditions with noticeable increases in procurement costs in the second half of 2021, we still achieved a reasonable result.
“The procurement and logistics situation, in particular, was a challenge for us, and – in view of the consequences of the war in Ukraine – will continue to be a considerable and, unfortunately, increasingly difficult burden. Nevertheless, thanks to our close supplier relationships – and, above all, thanks to the flexibility and commitment of our employees, of which I am very proud – we were able to essentially maintain our ability to deliver.”
Investments made by Dr. Oetker and Conditorei Coppenrath & Wiese amounted to around €136 million and will see the company creating the basis for further growth in the coming years, to implement state-of-the-art technology and high-quality processes throughout its supply chain.
Dr. Oetker generated 66% of its total sales outside of Germany in this period.
The company’s German unit achieved sales above the level of the previous year, as Dr. Oetker benefitted from successful innovations, which more than compensated for the overall sluggish recovery of the professional business.
Sales in Western Europe dropped to the levels of 2019, unable to match the high sales of the previous year because of individual country markets.
Eastern Europe saw a moderate increase in organic sales, compared to 2020, despite impacted sales development in the region.
Encouraging business developments in Turkey contrasted with declines in Poland, the company noted.
Elsewhere, poor harvests led to a weak preserving season, affecting the sales of preserving products in many Eastern European countries.
The Americas region benefitted from the reopening and recovery of distribution channels, such as Wilton’s Craft Stores in the US and Mavalério’s party stores in Brazil.
The group reported significant organic growth in the Americas, as the home-baking trend continued.
Dr. Oetker’s national companies in South Africa, Tunisia and India also saw significant growth during the financial year.
Outlook For 2022
The company expects total sales in 2022 to be slightly higher when compared to the previous financial year.
The two companies, Dr. Oetker and Conditorei Coppenrath & Wiese, will adhere to their medium-term plans despite uncertainties and the increase in the cost of raw materials, as well as packaging materials, transport services, and energy.