Faber-Castell expects 6% growth - Investments in sustainability, digitalisation and supply chain are part of a future-oriented corporate approach

Stein - The Faber-Castell Group expects sales growth of at least 6% year-on-year in the current 2021/22 financial year*. Profitability is also expected to rise as a result our increase in investments. In this last financial year, the global pandemic meant that the company experienced a currency-adjusted decline in turnover of around 10% compared to the previous year. In the same vein, negative currency developments have had a similarly negative impact on sales development, especially from relevant markets in Latin America and Asia. One-off effects such as global retail lockdowns, months-long school closures and currency fluctuations were particularly challenging for the company, as they have been for the industry at large. Even though unknowns persist because of the ongoing pandemic – especially in important countries in Latin America and Asia – Faber-Castell is generally optimistic about the future: "In the German, US and Australian markets in particular, we’re on a very encouraging course and have been able to further expand market share," says CEO Stefan Leitz. Since the outbreak of COVID-19, the company has swiftly and successfully implemented a series of organisational adjustments. This has made it necessary to cut approximately 1,100 jobs worldwide. Germany is also affected by these adjustments with 110 jobs cut. "These measures hurt," Leitz said. "However, they were unfortunately necessary in order to shape the company for the future."

The company has launched a wide-ranging transformation programme: improvements are being made to organisational structures and processes aimed at increasing speed and reducing complexity. For example, more regional expertise is being utilised in functions such as marketing and finance. The SAP rollout in the Group has also been intensified. With the relocation of the European distribution centre in spring 2022 customer service will be improved, enabled by greater packaging automation, late customising, and the consolidation of processes.

Further investments are planned that target the digitalisation of the supply chain as well as a number of sustainability initiatives. Another important part of the investment program involves the acquisition of a production property in the USA.

"I am proud of what we’ve already achieved so far," said CEO Stefan Leitz. "The pandemic has actually significantly accelerated our development process. With our worldwide teams, we will use this impetus alongside our customers and business partners to optimally align the company for the future, anchoring the company as a global innovative market leader. Faber-Castell will make the difference in vital future fields that are also our natural fortes, such as creativity and sustainability – and that is our declared goal!”