The Finnish coffee, beverage and food supplier achieved 14% sales growth in 2022, but reported a net loss amid rising raw material, energy and transportation costs
Paulig's headquarters in Helsinki, Finland | Photo credit: Paulig
Paulig has reported full-year revenues exceeding €1bn ($1.1bn) for the first time in 2022 but cited rising costs for weakened operating profitability and a net loss.
The Finnish coffee, beverage and food supplier achieved 14% sales growth in the 12 months ended 31 December 2022 to reach €1.1bn ($1.2bn). Of the total revenues, 52% came from Nordic markets.
Paulig implemented several product price increases last year but said it was ‘outpaced’ by global inflation, with rising raw materials, energy and transportation costs leading to a 54% fall in operating profits to €44.2m ($48m).
The Helsinki-based coffee, beverage and food supplier also cited the significant increase in the price of green coffee and its exit from the Russian market as contributing to a net loss of €20m ($22m), compared to a net profit of €85m ($92m) in 2021.
In its coffee category, which includes the Presidentti, Juhla Mokka and Paulig Mundo packaged coffee products, Paulig achieved 16% sales growth, despite a fall in volumes across Finland and its key Baltic markets.
“In very many ways, 2022 was a historic year for Paulig. The company’s revenue exceeded €1bn – a first for Paulig – and, in a very turbulent year, we bought and divested businesses and opened a new factory in Belgium. Whilst our revenue grew significantly on the back of numerous price increases, global cost inflation outpaced us, resulting in weakened profitability compared to the previous year. We will continue to drive growth and we expect both revenue and profitability to improve in 2023,” said Rolf Ladau, CEO, Paulig.
In its annual report, Paulig also highlighted ‘significant progress’ towards reaching its sustainability targets, which include reducing greenhouse gas emissions from of its own operations by 80% by 2030.
The Finnish coffee, beverage and food supplier cited its Mundo packaged coffee range, which achieved Carbon Neutral certification in August 2022, as a key performer in its sustainability drive.
In March 2023, Helsinki-based Paulig announced it was honing its focus on wholebean and ground coffee and had entered into an agreement to sell its Frezza ready-to-drink (RTD) coffee brand to Finnish dairy business Juustoportti.