Record year for Faber-Castell
Sales reach a record high of EUR 631 million, with growth at 10% / boom in colouring books delivers new business / FC Cosmetics on the road success
Stein, 18 August 2016. For the Faber-Castell Group as a whole, the fiscal year 2015/161 was the best year in the company’s history with group sales of EUR 631 million (+10% year-on-year). As the Speaker of the Executive Board Countess Mary von Faber-Castell reports, the Group achieved double-digit growth rates in some areas. Count Anton-Wolfgang von Faber-Castell, who passed away on the 21 January 2016, left behind a healthy company with a decentralised structure that is performing equally well not only in all sales regions, but also in both business areas: products for writing, drawing and creative design and OEM (private label) decorative cosmetics.
Writing and drawing by hand – the trend is intact
Despite – or perhaps even because of – the digital transformation, demand for writing and drawing products remains healthy. In particular, the private segment of school, creative and luxury products is faring well globally. The current colouring boom, triggered by the emergence of colouring books for adults as a form of stress relief, is one example of the value that analogue drawing tools add compared with screens. “Thanks to this trend, our production has been operating at top speed for months, in order to satisfy demand for coloured and artists’ pencils,” explains Countess von Faber-Castell. The company invested in high-tech machinery at an early stage, which helped avoid bottlenecks in production. Count Charles von Faber-Castell, son of Count Anton-Wolfgang von Faber-Castell, confirms the positive impact on the premium business: “With double-digit growth in this segment, we are ideally equipped to expand our market presence further,” explains Count von Faber-Castell, who heads up the Premium segment.
FC Cosmetics on track for success
The Faber-Castell Cosmetics division, which accounts for more than 10% of Faber-Castell AG’s total business, has made substantial advances over the last two years. The technical and process synergies that have been captured in the two divisions have supported growth in the Cosmetics division, which ended the year with double-digit sales growth and a good profits.
Stable performance expected in financial year 2016/17 / continued investment
Indications for the current fiscal year, 2016/17, point to further positive performance, as in the previous year. In the Writing and Drawing division, the Company’s sales to date – i.e. well before the Back-to-School season in Europa– are significantly higher year-on-year. The Cosmetics division is also expected to enjoy further growth.
Further investment will also be made in production and R&D in both business areas. Product innovations and launches are intended, for example, to support the Christmas business. On 1st September, the Company will present a luxury limited-edition art supply box called KARLBOX, which was personally designed for Faber-Castell by designer Karl Lagerfeld. The KARLBOX, which will be limited to a production run of 2,500, will be sold via selected retail channels and in the company’s own retail stores. At the Premium end, the selective distribution of the “Graf von Faber-Castell Collection”, featuring an exclusive array of new writing instruments and leather accessories, will continue. Faber-Castell Cosmetics also plans to expand its international business further through new formulas and innovative product concepts.
“We wish to continue to grow organically and sustainably, as we have done in the past,” comments Countess von Faber-Castell. “In so doing, we will maintain our existing business focus and continue to stick to the core values of the brand. The shape that the company is in today is the fruit of an impressive team performance that could never have been achieved without the commitment and loyalty of our employees and business partners around the world. The family and the management team are very grateful for this.”