Given the persistently adverse economic environment, we once again effectively responded to the major global challenges of 2023. We had to deal with the impact of geopolitical crises on our supply chains and sales markets while also adapting to significant cost increases and subdued consumer sentiment. At the same time, we held several tough negotiations with our trading partners. We were unable to implement certain projects, such as product launches, as planned. Over the course of the year, however, it became apparent that the cost management and liquidity management measures we had introduced were proving effective. Despite a year-on-year decline in sales revenues, we succeeded in achieving a stable financial and earnings position on the whole. The return on net capital employed was up on the previous year. Capital expenditures were higher than in the previous year due to the full acquisition of shares in the Cuki Group and Coffee at Work in 2023. Net financial debt also improved compared to our forecast report for 2022.

Considerable progress was made with regard to the integration of sustainability into our core business and related processes. Examples include the expansion of our range of sustainable products, the launch of several Group-wide sustainability projects, and the further development of our key performance indicators. We provide more detailed information on this topic in our Sustainability Report and in our Declaration of Conformity with the German Sustainability Code.

Financial and non-financial performance indicators

Melitta’s corporate management system is geared toward long-term, value-oriented, and profitable growth. To this end, we have defined specific controlling processes. Our key performance indicators are sales revenue, EBIT, return on net capital employed (EBIT as a ratio of average net capital employed), and free cash flow.

In addition to these financial performance indicators, Chief Corporate Management also monitors non-financial figures. These performance indicators relate in particular to our product and supply chain responsibility, our environmental footprint, our social responsibility, and our responsibility for employees. The definition of these indicators is based on the relevant national and international standards as well as on their meaningfulness with regard to the achievement of our sustainability targets. We use the German Supply Chain Due Diligence Act (“Lieferkettensorgfaltspflichtengesetz”) to continuously develop the sustainable management of our purchasing processes and supply chains and map this with the corresponding key figures. At the same time, we are continuing to develop our strategic alignment and the corresponding management and reporting systems in line with the requirements of the Corporate Sustainability Reporting Directive. We will report in accordance with these requirements for the first time for 2025.

Employees

The successful implementation of the Melitta Group’s growth strategy also requires skilled human resources in a wide variety of areas. In 2023, the Melitta Group employed an annual average of 5,885 people. We continued to implement our Group-wide HR strategy in 2023 and rolled out a corresponding global leadership program for our managers. A Group-wide HR information system was implemented (Workday) and an Employer Value Proposition (EVP) was developed and rolled out internationally with the claim “make it happen” in order to further strengthen our position as an attractive employer. This EVP forms the basis for the ongoing strategic design of our employer brand and the external communication formats planned for 2024.