Fazer Group Strengthens its Position
Defying the bleak economic environment, Fazer Group, one of Finland’s and the Nordic region’s biggest food groups, has reported a 6.4% increase in net sales to Eur1.676 billion and a rise in operating profit from Eur54.2 million to Eur68.6 million for 2012. The operating margin improved from 3.4% for 2011 to 4.1% last year.
The growth in net sales was strongest within confectionery operations, but was also robust within the group’s bakery business in Finland and Sweden and food service operations in Norway and Sweden. Some Eur21 million of the growth in net sales compared to 2011 was attributable to the strengthening of the Swedish krona and Russian rouble against the euro. The net effect on the net sales of acquired and divested operations was Eur16.1 million.
Established 122 years ago, the business has evolved from a cafe in Helsinki to become one of the leading bakery, confectionery and contract catering companies in the Nordic and the Baltic countries.
2012 was characterised by a focus on strategic and organisational reform to ensure that the company can grow and expand profitably in the future.
“After an exceptionally challenging year, I’m very satisfied with the result we have achieved. We also succeeded in strengthening our position on our main markets Finland, Sweden and Russia,’ says Karsten Slotte, President and CEO of Fazer Group. “Our strong brands, successful novelties, skilful employees and value-added products and services were the basis for Fazer’s success in 2012. As Fazer is doing well, this is the right time to aim for even stronger growth.”
Fazer revised its strategy in 2012, establishing a new business area – Fazer Brands, which brings together the group’s bakery, biscuit and confectionery businesses and the new Cafés & Shops business. Fazer Brands focuses on branded consumer business, and Fazer’s brands are at the core of the new strategy.
“The new Fazer Brands organisation gives us new opportunities to share experiences of international business. In addition, we can accelerate the positive development in the bakery, confectionery and service businesses. In February 2013, Fazer Food Services started to build a new business structure in order to ensure balance between strategic development and operative performance. Fazer Food Services’ goal is to grow by creating an even stronger client focus, by meeting different clients’ needs with new innovative solutions and increasing cross-border team work within the business area,” Karsten Slotte explains.
