Royal Swinkels Family Brewers books solid 8% sales increase in 2021 and grows to 56% circularity score

16-12-2022

Royal Swinkels Family Brewers recorded a solid increase in turnover in 2021, despite the challenges posed by the corona crisis, availability of raw materials and materials and rising inflation. Armed conflict in Ethiopia was also part of reality. The family business was able to keep its eyes on the long term and continue to innovate. A positive result was achieved through volume recovery and cost-cutting measures.

 

04-21-2022

EBITDA shows strong recovery despite difficult conditions

Royal Swinkels Family Brewers recorded a solid increase in turnover in 2021, despite the challenges posed by the corona crisis, availability of raw materials and materials and rising inflation. Armed conflict in Ethiopia was also part of reality. The family business was able to keep its eyes on the long term and continue to innovate. A positive result was achieved through volume recovery and cost-cutting measures. 

Peer Swinkels, CEO of Royal Swinkels Family Brewers: "In contrast to 2020, we experienced lockdowns in the hospitality industry throughout the year in 2021, especially in Europe. A number of core markets in our business with high hospitality sales, including the Netherlands, were again hit hard. In our supply chain, delivery problems arose due to shortages of materials and insufficient availability of container transport. This had an impact on our production and created further uncertainty. By staying the course and making choices, we managed to navigate our way through the crisis despite these challenges. Our result for 2021 is encouraging and indicates that our company has been able to create a very solid basis for future growth. I am therefore very proud of our people who have made this possible. The flexibility and hard work of all our colleagues has kept our business running smoothly. In 2021, we sharpened our strategy, implemented cost measures that proved successful and kept our sights on the future. However, the current unrest in the world again creates uncertainty. We hope that there will be peace in Ukraine very soon."

Future-proof
In this challenging year, it has been an advantage that the company operates in so many countries, channels and segments, in both business-to-consumer and business-to-business activities. As a result, the risks are well spread. The company succeeded in reaching customers and consumers during the year, for example by making provisions for working from home and by taking extra measures to be able to continue working safely on location. By focusing on strong brands in growth segments, the family business was able to further increase sales in 2021. The company's balance sheet position was also strengthened further, making it more future proof. In addition, new scope has been created for growth investments in the coming years which are in line with the company's strategic plan. Uiltje Brewing Company from Haarlem was welcomed as the newest member of the family. In addition, the family business innovated further and expanded its range of beers, including Cornet Alcohol-free and La Trappe Nillis.

Financial results
Swinkels Family Brewers' sales rose from EUR 773 million to EUR 836 million in 2021, an increase of 8% compared to 2020. EBITDA rose by 26 percent, from 70 million in 2020 to 88 million in 2021. Through volume growth and cost measures, the family business achieved its financial targets and, despite the many challenges, was able to invest in the future and continue its chosen path.

Every country had a different COVID-19 approach
In the Swinkels Family Brewers division, there was a lot of difference between the various business units, because each country had a different COVID-19 approach and the hospitality share that Swinkels Family Brewers has in each country also differs. In the Netherlands and Belgium, the results suffered from the hospitality lockdowns. Whereas Belgium recovered quickly, the Netherlands had to contend with a second lockdown, which depressed results in that market.

In Belgium, Cornet developed into one of the fastest growing beer brands, also due to the introduction of Cornet Alcohol-free and Cornet Spirit. The 8.6 brand performed well, also thanks to its strong presence in the retail channel. 

The world's first emission-free malthouse
The Holland Malt division showed positive results, just as in 2020. The malthouses produced higher volumes, despite the pressure on the beer market, making full use of current capacity. Holland Malt is excellently positioned in the malt industry, with a strategic location for export and import flows and an attractive scale to produce cost-efficiently. In the area of sustainability, the malt company has started developing the first emission-free malt factory in Eemshaven, leading the industry in the field of sustainability. An enormous step forward within the energy transition.

Unrest in Ethiopia
The results of Ethiopia's Habesha brewery were, given the circumstances, positive. Volumes were slightly higher than in 2020 despite three exceptional circumstances: a strong devaluation of the local currency, COVID-19 and an armed conflict in the country. The unrest in Tigray made sales in part of the country almost impossible. Despite the challenges, Habesha achieved a good result and even introduced draught beer, which is a large and growing segment, especially in the capital Addis Ababa.

Circularity 
Swinkels Family Brewers continued to build on its ambition to become a fully circular enterprise. The goal is to be a 75% circular enterprise by 2025. To this end, a special index has been developed under the name Swinkels Circularity Index, with three major focus areas: circular purchasing, circular production and high-quality reuse of residual flows. This index has an assurance from the accountant and each year the company reports extensively on all initiatives in the field of circularity in its annual report. With great pride, Royal Swinkels Family Brewers received the FD Henri Sijthoff award for best annual report in the category private companies. The circularity score of the family business in 2021 ended up at 56%, an increase of 4 percentage points compared to 2020, realizing the target for this year. This was achieved by using, for example, thinner packaging, more sustainable building materials and the circular disposal of residual flows.

Some steps have been taken to achieve the 2025 target, with the sustainability of the malthouse in Eemshaven playing an important role. In addition, improvements in the area of reusing water, improving energy management, purchasing sustainable agricultural raw materials and working towards 100% circular packaging are all being considered.

View the full annual report 'Looking ahead' of Royal Swinkels Family Brewers.