2012: steady trend continued
The net sales of Paulig’s Coffee Division fell by 10.5 per cent on the previous year to roughly 297.9 million euros. The change in net sales was mostly due to a fall in the price of green coffee. The target for earnings was overachieved, however.
Success in purchasing green coffee is crucial to Paulig’s achievements, both financially and in terms of quality. Green coffee accounts for 90% of all procurement. The price of green coffee and the currency markets demand constant vigilance. Other expense items are more easily predictable. In 2012, the trend in the price of green coffee was downwards until the late summer, after which it went into a new upswing.
Paulig’s market position remained strong in all the business areas. In Finland, Paulig is still the clear market leader and the recognised brands kept their huge popularity among Finns. In the course of last year, we improved profitability in Russia and the other CIS states as well as in the Baltic countries, where Paulig is also the market leader in terms of value. In Russia, the trend in market share progressed according to plan and we rose to second place for roasted coffee in two large cities. Most of the brands sold in Russia can now be made at the new roastery in Tver, the uptime rate of which has taken a positive track after initial challenges.
Investments during 2012 were mostly in replacements. The number of personnel increased in Russia, but in other countries there was no change in the workforce.
"Last year was filled with factors of uncertainty, from the price of coffee and USD/EUR exchange rate to the macroeconomic fundamentals. However, our company was able to respond to these challenges and operational result remained at a satisfactory level. Our operations are also on a steady basis with an eye to the future."
- Anton Westermarck, CFO