Faber-Castell holds its own in a difficult landscape

Faber-Castell was able to achieve a satisfactory business performance in the 2023/24 fiscal year despite increasingly challenging market conditions: The company could maintain a strong return on sales above the pre-Covid level of 19/20 even though these declined slightly compared to the previous financial year. Faber-Castell is strengthening its focus on creativity-enhancing and sustainable product concepts to maintain a successful course into the future.

In the past financial year 2023/24, following the second-best turnover in the company's history in the previous reporting year, the Faber-Castell Group recorded a -4.7% decline in turnover to EUR 618.4 million (previous year: EUR 649.2 million). Adjusted for currency effects, i.e. assuming stable exchange rates, the decline amounted to -1.9%. Even so, profitability remains in the high single-digit range.

Opportunities for growth 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 thoroughly satisfactory: "The "ONE Faber-Castell" Group strategy adopted in 2022 that continues to be implemented globally, is showing initial success in all focus areas thanks to the measures already implemented to increase efficiency." Leitz expects positive developments: "Globally, we see above-average growth opportunities, especially in emerging markets such as Asia and Latin America. In more established markets, where Faber-Castell traditionally holds a leading market position, we will maintain and selectively expand our market leadership by introducing innovative product concepts and tapping into new target groups."

Building on brand appeal

Faber-Castell's global growth strategy also relies on the visibility of the brand and its consistent positioning as a premium manufacturer of creative products. The long-term sustainability campaign "Change needs creativity" rolled out in over 20 countries, and the associated relaunch of the company’s sustainability communication successfully contributed to a global strength­ening of the brand. Stefan Leitz: "Creativity is and will remain an important future topic for our company that will become increasingly important as digitalization increases. As a companion for life' that serves almost all life plans and phases with its creative ranges, we have a unique selling point here. Faber-Castell Cosmetics is also a strategic pillar of our business in the B2B sector, with great growth potential. Our strong global team and highly specialized research and development division make us an ideal partner for our global beauty customers.

Expanding our commitment to sustainability

When it comes to sustainability, the company aims to advance its pioneering role. In addition to its own certified forest management and biodiversity, Faber-Castell is significantly ramping up its generation of renewable energy. At the same time, resource conservation is becoming increasingly important, and Faber-Castell is expanding its use of cardboard in packaging and alternative plastics in our products. The company remains steadfastly committed to creating equal opportunities and welcoming diversity.

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