The Melitta Group uses a differentiated management system aimed at the structured identification and assessment of those risks to which the company is exposed. It includes all organizational regulations and measures for the early recognition, evaluation and analysis of risks.

Melitta pursues a balanced risk policy. In the course of auditing the annual financial statements 2021, we commissioned the external auditors to conduct a voluntary audit of our early recognition system according to Sec. 91 (2) of the German Stock Corporation Act (AktG). They were able to confirm that our early recognition system was appropriate and complied with statutory requirements, also with regard to the revised auditing standard IDW AuS 340. Irrespective of this, the risk management process will continue to be refined in 2022.

The management system comprises suitable reporting procedures. These ensure that the managers responsible are constantly and quickly informed about potential risks and opportunities. This enables both the Group and individual companies to take fast and effective corrective measures.

The main risks of the Melitta Group result from general economic developments, sector developments, and risks from general operating activities. In addition, price increases for commodities (especially green beans), energy costs, supply chains that are not always free of disruptions, and unfavorable exchange rate developments may lead to negative deviations from the Group’s targets. These risks are currently also dominated by the long-term – and hard to predict – economic effects of the coronavirus pandemic on our professional hot beverage preparation business field, as well as by the Ukraine crisis in general.

The monitoring and controlling of financial risks is entrusted to the Group’s treasury division. Foreign exchange and interest hedging instruments (options, swaps, futures, and interest derivatives) are used where necessary to hedge against specific risks from existing or foreseeable underlying transactions. Liquidity risks and risks from cash flow fluctuations are countered constantly by local and group-wide liquidity planning.

However, these general risks are also countered by opportunities. For the Melitta Group, these arise in particular from the tapping of market potential via a further expansion of our international presence and growing awareness of the Melitta brands, as well as from the rising propensity to purchase commercial coffee machines.

Financial and profit-related opportunities with positive deviations from the planned trend in revenue and earnings result from additional sales, falling commodity prices and more favorable exchange rates.

In 2021, we expanded our risk management system to include sustainability risks. We derive integrated strategies and processes for risk avoidance and mitigation from the defined risks. The holistic integration of sustainability in our core business and the resulting measures serve not only to reduce existing or expected risks, such as the effects of climate change, but also to generate further opportunities in our markets.

Against the background of the above mentioned explanations, the overall risk and opportunity situation has changed only marginally compared with the previous year. However, risks relating to the availability of materials and input products, as well as the ongoing rise in material prices, are having an increasingly noticeable impact compared with the previous year.