Dr. Oetker maintains sales levels, anticipates ‘significant’ cost increases
f2m_Dr_Oetker_Headquarters

Dr. Oetker companies achieved sales of around EUR 3.7 billion in the 2021 financial year, on par with the 2020 results, despite market disruptions caused by the global pandemic. The company achieved around 66% of its total sales outside of Germany. Dr. Oetker and Conditorei Coppenrath & Wiese collectively invested EUR 136 million last year, they announced, anticipating further growth in the following years.

Dr. Oetker saw ‘increasingly challenging consequences along the entire supply chain” in FY 2021, noting that the ongoing war Ukraine leads to mounting difficulties in procurement in the current year:

“We are pleased to report that we have again succeeded in generating the same level of sales in 2021 as in 2020, a special year for us, in which Dr. Oetker grew organically by 11% – and this despite at times the noticeable downturn in numerous markets in which we sell our products. 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 the 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,” explained Dr. Albert Christmann, Chairman of the International Management Board of Dr. Oetker on the occasion of the publication of the annual figures.

Acquisitions

Last year, the company primarily focused on integrating the previously acquired companies. It also took over some smaller companies such as the Create Better Group Ltd, a market leader in the UK’s B2C sector of multi-brand specialty stores. With the acquisition of Kuppies, Dr. Oetker took over a brand and a production facility for ready-to-eat cakes in India.

Product launches

In the 2021 financial year, Dr. Oetker launched a large number of products, while developing its existing ranges. The company also continued to implement its sustainability strategy and introduced LoVE It!, a plant-based vegan pudding, in the cake and dessert category. The launch of the low-fat, no-sugar-added high-protein pudding range in various European countries was also very successful, the company reports.

2022 outlook

The two companies Dr. Oetker and Conditorei Coppenrath & Wiese are sticking to their medium-term plans despite the considerable uncertainties, especially the high double-digit percentage increase in the cost of raw materials as a result of various bottlenecks, and similar development in packaging materials, transport services and energy. For 2022, they expect total sales to be slightly higher than in the past financial year, given the ongoing challenging conditions.

As a result of the war in Ukraine and the disruptions in global supply chains caused by the pandemic, significant cost increases are expected, forcing price increases and cost-saving measures. The aim is to pass on as little of the cost increases as possible to consumers and also to generate the necessary funds to be able to continue to push the innovations in products and services as well as in sustainability and digitization that have been launched, in order to enable sustainable growth for Dr. Oetker, the company explained.

“Despite the current confusing and difficult global political situation, we are looking ahead with confidence, even though the impact of the war in Ukraine on trade, supply chains and the availability of raw materials is more than challenging. We are deeply affected by the suffering of the people as a result of the Russian war of aggression against Ukraine, which is why we are continuing our humanitarian support unchanged. At the same time, Dr. Oetker continues to invest in innovative products and services as well as in sustainability and digitization in order to remain attractive to consumers and competitive in the future,” concludes Dr. Christmann.

Photo: Dr. Oetker headquarters (credit: Dr. Oetker)