Westfleisch will continue to grow in 2023
Westfleisch continued to grow in 2023: The second largest German meat marketer based in Münster was able to increase its sales by 11 percent to 3,35 billion euros last year. Earnings before interest and taxes (EBIT) rose by almost 7 percent to 37,7 million euros. The annual surplus amounts to 21,5 million euros. The company presented these preliminary, as yet unaudited figures at today's opening event of the “Westfleisch Days 2024” in Paderborn. By Friday, the company will be informing its approximately 4.900 agricultural members in three other regions in northwest Germany about the past financial year and the plans for the current year.
“We were able to further expand our market shares in 2023,” explains Dr. Wilhelm Uffelmann, CEO of the cooperative since September 2023. “And that applies not only to the pure slaughter numbers, but also to further processing.” In fact, Westfleisch slaughtered 6,5 million pigs in a nationwide market that was significantly declining, as in the previous year; The company was even able to increase its livestock volume by 5,2 percent to 373.000 cattle and calves. Another growth driver was the processing business of the subsidiaries: The convenience and self-service goods provider WestfalenLand increased its sales by 2,8 percent, the convenience and sausage manufacturer Gustoland by as much as 9,3 percent.
Focus on investments, efficiency and margin
After costs rose across the board in 2023, the company expects the burden to continue to increase in the future. In 2024, personnel costs will increase significantly after the collective agreement in 2023, while at the same time toll and CO2 tax increases will drive up logistics costs. In addition to the constantly rising energy costs, regulatory costs caused by, for example, the supply chain law, KRITIS obligations or the new EU cybersecurity law NIS2, also represent a growing burden.
“Despite all the obstacles, we are confident about the future,” emphasizes Uffelmann. “We are gradually improving our options for action, sustainably strengthening our quality of results and thus consolidating our market position.” Three things are particularly important: “Firstly, we want to focus on expanding our high-margin business areas. Secondly, we will make targeted investments in our locations in order to work even more efficiently. And thirdly, we want to further professionalize the utilization of by-products and expand profitable collaborations in segments close to our core business.”
High dividend and special bonus payment
Ultimately, the extensive efficiency measures program continues to be an important success factor. “With the help of WEfficient, we were able to compensate for some of the significantly increased costs as early as 2023,” explains CFO Carsten Schruck. “We also implemented a new long-term refinancing last summer, with which we were able to improve our financial result despite the interest rate turnaround.”
Westfleisch SCE's consolidated balance sheet remains solid and the equity ratio is just under 40 percent. The cooperative members have the prospect of a dividend payment of 4,2 percent on deposited business credits and other bonus and special bonus payments. In accordance with the statutes, the general meeting in June 2024 will decide on their distribution.
