Faber-Castell holds its own in a difficult environment

Faber-Castell is satisfied with its business performance in the 2023/24 fiscal year despite increasingly challenging market conditions: The company maintains a strong return on sales, which is well above the pre-Covid level of 19/20, despite a slight decline in sales. 

Second-best turnover in the company's history

After generating the second-best turnover in the company's history in the previous reporting year, the Faber-Castell Group recorded a slight decline in turnover of -4.7 percent to 618.4 million euros (previous year: 649.2 million euros) in the past 2023/24 financial year. Adjusted for currency effects, the decline amounted to -1.9%. Profitability remains in the high single-digit range.

Growth opportunities in Asia and Latin America

Against the backdrop of growing geopolitical and market challenges, CEO Stefan Leitz considers the Group's business development to be quite satisfactory: “The ‘One Faber-Castell’ Group strategy, which was adopted in 2022 and has been in the process of global implementation since then, is showing initial success in all focus areas thanks to the measures already implemented to increase efficiency.” Leitz expects positive development in the coming years: “Globally, we see above-average growth opportunities, especially in emerging regions such as Asia and Latin America. In more established markets, where Faber-Castell traditionally holds a leading position, we want to maintain and selectively expand our market leadership by introducing innovative product concepts and tapping into new target groups.”

Focusing on the appeal of the brand

For its global growth strategy, Faber-Castell is also focusing on the visibility of the brand and its consistent positioning as a premium supplier of creative products. The long-term sustainability campaign “Change needs creativity”, which was rolled out in over 20 countries, and the associated relaunch of the entire sustainability communication successfully contributed to strengthening the brand globally. Stefan Leitz: “Creativity is and will remain an important future topic for our company, which will become increasingly important as digitalization grows. As a 'life companion' that serves almost all life plans and phases with its creative product ranges, we have a unique selling point here.

Expanding our commitment to sustainability

The company wants to further advance its pioneering role in the industry when it comes to sustainability. In addition to its own certified forest management and biodiversity, Faber-Castell is increasingly focusing on generating its own energy from renewable sources. By using alternative plastics in products and cardboard in packaging, Faber-Castell is also focusing on conserving resources. The company is also committed to equal opportunities and diversity.

For the current financial year 2024/25, Faber-Castell expects ambitious currency-adjusted sales growth while maintaining profitability.

Source: www.faber-castell.de