Inflation, high procurement costs and hesitant customers: higher prices for baking mixes, frozen pizzas and pudding powder bring Dr. Oetker put billions of euros back into his coffers.
The Dr. Oetker Group generated sales of 4.17 billion euros with its food division in the 2023 financial year. This is an increase of 6.9 percent compared to the same period last year, as the Bielefeld company announced.
As in 2022, business was characterized by geopolitical conflicts such as the wars in Ukraine and the Gaza Strip, the statement said. Inflation, cost pressure when purchasing and higher product prices caused customers to be reluctant to consume. Nevertheless, Albert Christmann, the chairman of the management board, described the year 2023 as good overall.
Christmann doesn’t have good news for consumers. “Prices are not going down again. Inflation is not over yet,” he said. Follow-up effects can still be observed. The prices for cocoa have exploded. Without price adjustments, Dr. Oetker made a loss on certain products, the manager said.
No information on winnings
The family business from East Westphalia traditionally did not provide any information about profits. Dr. Oetker will publish in mid-June.
The family business spent 171 million euros on investments in the food sector last year. That is an increase of 46 million euros compared to 2022. According to the announcement, this was largely about sustainability projects and the digitalization of all company processes.
For 2024, Dr. Oetker expects further sales growth in his food division with around 16,500 employees due to price effects. The number of employees fell by around 400 in 2023. The reason is, among other things, the sale of the Russian business after the start of the Russian war of aggression against Ukraine and a subsidiary in France.
Christmann and the chairman of the Oetker advisory board, Rudolf Louis Schweizer, described the sale in Russia to their own local managers as the right thing to do, even after some time. “This was the right decision, especially in the interests of the employees in Russia,” said Christmann. After Kremlin leader Vladimir Putin’s criminal war of aggression, it quickly became clear during consultations with the family that the only option was to sell.
Dr. Dr. made around two thirds of the total turnover. Oetker abroad
The sales of 4.17 billion euros from pizzas, cakes, baking mixes and desserts also include the revenues of Coppenrath & Wiese. The Westphalian-Lower Saxony manufacturer of frozen baked goods saw sales increase by 5.6 percent to 520 million euros in the last financial year due to higher prices.
Dr. Dr. made around two thirds of the total turnover. Oetker with 2.70 billion euros abroad. As of March 1, 2023, the company took over the Imperial brand in Belgium, France and the Netherlands.
Source: Stern
