2023 proved to be a challenging year, yet we triumphed. We reported a solid performance: we protected our margins, supported our customers, and invested in our employees. This success was, in no small measure, thanks to the entrepreneurship of our people, the agility of our leadership, and the resiliency of our business model. If you're curious about how we did this, download our 2023 Annual Report.
14,639
75
358
These key figures give you an overview of the most important results of the Refresco Group
"2023 was not a year for the faint-hearted, but Refresco triumphed. I'd like to pay tribute to all my colleagues, whose enthusiasm and aspirations have been the cornerstone of our accomplishments."
Dear stakeholder,
Efforts to grow our global business continue to
bear fruit. Despite tough economic conditions,
I am pleased to report a solid performance
from the Group: we protected our margins,
supported our customers, and invested in our
employees. This success was, in no small
measure, thanks to the entrepreneurship of our
people, the agility of our leadership, and the
resiliency of our business model. The result was
a very decent year for Refresco, commercially,
operationally, and financially.
The year in brief
The macroenvironment in 2023 threw us a few curveballs. The global
energy crisis, high core inflation rates, the scarcity of labor, and a
series of interest-rate increases exerted pressure on our input and
operating costs. Inevitably, this meant passing on cost increases to
our customers.
Despite the economic headwinds, our year-on-year revenue increased significantly. The fact that we are an extremely agile company that can respond quickly and appropriately to emerging situations, whether internal or external, enabled us to weather this storm and come out stronger.
We have an exceptionally motivated and versatile workforce that manages our supply chain effectively to support our diversified customer base. As a result, we obtained the raw materials we needed, maintained strong relationships with customers, and sustained our reputation for quality and reliability. I say with all sincerity that our people are our most important assets.
Growth and outlook
I am delighted with the acquisition of Tru Blu Beverages in December
2022. New leadership has further strengthened the business and,
in doing so, acquired new customers, expanded its portfolio,
and improved its profitability. Likewise, by having completed the
acquisition of Avandis in January 2023, we expanded our offering to
customers in the alcohol category. Across our business, we increased
our manufacturing capacity, focused on more profitable categories,
and captured new volume opportunities.
After an acquisitive year in 2022, this year was relatively quiet, with our only acquisition being GioCan (Italy), in September. That said, we maintain the pursuit of our Buy & Build strategy. The beverage market continues to evolve toward a broader range of products, and Refresco has an important role to play. Accordingly, we keep searching for M&A opportunities; Europe, North America, and Australia remain attractive propositions for growth. I am happy to say that we have an exciting mix of small and large acquisitions in the pipeline.
This year, we amplified our focus on our existing ESG strategy and targets due to our commitment to following eco-conscious practices and our desire to provide added value. We want to offer our customers alternative, sustainable solutions at a time that is right for them, whether it is recycled packaging, healthier options, or a reduced carbon footprint. When it comes to sustainability, we choose to be frontrunners, not followers.
Last, but definitely not least, we recognize the need to engage our valued employees. When labor is scarce, it is hard to find and retain the right people. Consequently, we further prioritized employee engagement initiatives, especially among employees in our production facilities. We have designated “People” as a strategic priority so that we can give all our business units the extra tools they need to successfully recruit and train at a local level.
A sense of gratitude
2023 was not a year for the faint-hearted, but Refresco triumphed.
Pivotal to our success was the steadfast loyalty of our customers, the
flexibility and resourcefulness of our suppliers, and the unwavering
support of our shareholders. All have enriched our activities with fresh
perspectives and opportunities. I thank them all.
Finally, I'd like to pay tribute to all my colleagues, whose enthusiasm and aspirations have been the cornerstone of our accomplishments. They continue to live our values every day. They continue to inspire. I could not be more proud or grateful.
On February 1, 2022, Refresco finalized the acquisition of Hansa-Heemann, a large German producer of bottled water and carbonated soft drinks (CSDs). The acquisition added three mineral water brands to our product portfolio in Germany - an important step forward for Refresco in the country's growing water category. In addition, we doubled our business and headcount in Germany.
The acquisition gives Refresco control of five bottling facilities in strategic locations across Germany, bringing our total number in the country to nine. By allocating production between these sites, we can improve our efficiencies.
As a result of this transaction, we now have the capability to manufacture our own preforms - the term used to describe a PET bottle before it has been blown into shape by high-pressure air - at our sites in Bruchsal and Lehnin. Following the acquisition, Refresco is now able to produce these in-house. Since the acquisition was finalized, Refresco has been manufacturing preforms for other sites in Germany.
Creating a more resilient, successful, and sustainable business begins by offering our people a high-trust work experience. A place where they can voice their opinions and know that someone will hear them. To help us keep a finger on the pulse of employees’ thoughts and feelings, we partner with Great Place To Work®.
In 2023, Refresco Australia earned its first Great Place To Work certificate, demonstrating its attractiveness as an employer and speaking to the caliber of its employees. It is an incredible achievement. The company joined the Group only the previous year and has undergone an extensive integration process.
Great Place To Work Certification® is an effective way for us to measure and track employee engagement against key metrics and industry leaders. That is why we ask our people to complete a Trust Index Survey and complete a Culture Brief every two years. For a business unit to earn a certificate, around 7 out of 10 employees must have a consistently positive experience at work.
Refresco Australia may have just earned its first certificate with a staggering response rate of 92% and a Trust Index Score of over 65%, but it’s not the first business unit in the Group to earn Great Place To Work Certification®. Refresco France, Italy, Spain, and Mexico have also been officially recognized as workplaces offering a great company culture, and they are looking forward to renewing their certificate every year.
Naturally, there is always room for improvement, and these surveys provide an excellent basis for action plans that help all our business units refine the working environment. The strive for excellence continues, but knowing our colleagues in Australia already feel at home tells us we are on the right track to growing our brand.
