Dr. Oetker’s food companies (including Conditorei Coppenrath & Wiese) increased their total sales by 6.9%, to EUR 4.2 billion in the 2023 financial year. In 2022, its sales amounted to EUR 4 billion. Dr. Oetker invested around EUR 171 million last year. Around 65% of its total sales are outside of Germany.
Innovative, sustainable and healthier products were a key success factor for Dr. Oetker in the 2023 financial year: Dr. Oetker expanded its range of frozen snacks to include the first vegan Bistro Baguette in the Spicy BBQ Vegan variety, for example. The company expanded its portfolio of products for anyone who follows a plant-based diet or simply wants to try something new.
The 2023 financial year was characterized by geopolitical conflicts and the associated consequences for global trade, which led to higher sales prices and the associated consumer reluctance to spend. In response, Dr. Oetker continued its efficiency and investment program, which helped achieve “a respectable financial year overall in 2023”. The companies expect moderate sales growth for 2024. At the same time, they will invest more, particularly in the future areas of innovation, sustainability and digitalization, Dr. Oetker announced.
“Tragically, the geopolitical conflicts did not ease during the past financial year but have further intensified. All hopes of a quick end to the war in Ukraine have been dashed. At the same time, the conflict in the Middle East escalated in a terrible way in October. Such conflicts exacerbate the issue of migration and human suffering and place a strain on social interaction. For global trade, the tensions meant disruptive supply chains and, in some cases, rising raw material and transportation costs as well as wage and salary costs. Unfortunately, we had to pass on some of these cost increases to our consumers,” explains Dr. Albert Christmann, Chairman of the International Management Board of Dr. Oetker, on the occasion of the publication of the annual key figures.
Markets
In Germany, the food companies achieved decent growth. The same applies to the entire Western Europe region and Eastern Europe, despite negative currency effects and the discontinuation of business in Russia, which was still largely included in the previous financial year. The sales development in Poland and Turkey performed particularly well.
Sales in the Americas region were driven by Canada and the Central and South American national companies in Mexico and Brazil. Overall, however, the region remained slightly below the previous year’s sales level, as business that was not viable for the future was discontinued due to the change in general conditions.
Business development in Region 3A (Asia, Africa, Australia) was also below the previous year in terms of sales in the reporting currency, the euro, as all countries in the region recorded negative exchange rate developments, primarily due to the devaluation of the Egyptian pound and South African rand against the euro. However, the region recorded significant organic growth. Growth was primarily achieved in India due to the pleasing development in the professional business as well as in Tunisia and Egypt.
Investments
Investments in the Food Division in 2023 amounted to EUR 171 million, EUR 46 million above the previous year’s level (EUR 125 million). A large part of the investments at Dr. Oetker also went towards expanding capacities in the international pizza plants. In the past financial year, Conditorei Coppenrath & Wiese invested in projects for sustainable energy solutions, after having invested heavily in the expansion of production and storage capacities in previous years in order to lay the foundations for medium and long-term growth.
As of March 1, 2023, Dr. Oetker acquired the Imperial brand in Belgium, France and the Netherlands. Imperial is a well-known and established brand in the world of baked goods and dessert preparations.
With the takeover of Galileo Grocery KG, based in Trierweiler, completed on July 31, 2023, the Oetker Group expanded its presence in the area of innovative frozen pizza snacks.
Conditorei Coppenrath & Wiese
Conditorei Coppenrath & Wiese achieved a sales increase of 5.6% in 2023. The brand performed particularly well in Germany in the segments of sheet cakes and rolls. In addition, the private label business continued to grow there. Sales also grew in Great Britain.
2024 outlook
Dr. Oetker and Conditorei Coppenrath & Wiese expect the food markets to grow moderately in 2024, with market growth being driven primarily by discounters and eCommerce. The expected increase in sales is based on stable consumer demand as well as operational initiatives, innovations and investments in the respective markets and regions. Inflation remains a determining factor in the development of global food markets. There are still no signs of any easing on the procurement markets, the companies noted. Price levels on most raw material and packaging markets are still considered high. In addition, there will be further wage and salary increases due to current collective wage agreements.
Following the significant increase in investment expenditure in the past financial year, the companies are also planning a further increase in investment for 2024, which is earmarked in particular for the future areas of innovation, sustainability and digitalization. In addition, the usual replacement investments will be made in 2024.
“The past financial year showed us that the measures we initiated were right. The combination of consistent savings in all areas and targeted investments ensured that we were able to hold our own in a very intense market. Accordingly, we will stick to our program, optimize our business processes and continue to invest in digital, sustainable and innovative future projects,” concludes Dr. Christmann.
Photo: Dr. Oetker
