towards full potential
Leipurin operates as part of the food chain, acquiring raw materials in global markets and domestic companies and supplying them through its effective logistics chain according to customer needs. Leipurin operates in nine countries.
Leipurin serves bakery, food industry and foodservice customers by providing raw materials and by supporting research and development and recipes for new products. Its other product categories include various supplies and machines for the same customer segments. Leipurin uses leading international manufacturers as its raw material and machinery supply partners.
Sights set on western markets
The war in Ukraine and the decision to withdraw operations from markets in Russia, Belarus and Kazakhstan have a significant impact on Leipurin’s operations. The divestment of the operations in the eastern markets still needs to be approved by the local authorities, and Leipurin expects the transaction to be completed during the first half of 2023, even though this still involves uncertainties.
Throughout the year, Leipurin’s operations were affected by the restrictions in eastern markets due to Russia’s invasion of Ukraine, the high price inflation in global raw material markets, and challenges related to the availability of raw materials.
The company also took significant steps forward during the year. The expansion to Swedish markets as a result of the acquisition of Kobia announced in the summer of 2022 increases Leipurin’s net sales significantly and produces synergy benefits in areas such as supply chain management and the development of the product range.
In 2022, Leipurin’s net sales and profitability improved from the previous year. The steep increase in raw material prices in global markets had a significant impact on the increase in sales.
Focus on core operations and improving profitability
In the summer, Leipurin completed the divestment of its machine business Vulganus to KÖNIG Maschinen GmbH, the leading bakery machine manufacturer in Austria. Vulganus manufactures and maintains refrigeration and freezing solutions for the food industry through its spiral products. Vulganus had previously been defined as a company outside core operations, and the investigation of strategic options had been started.
Leipurin has defined new sustainability goals for its operations in line with Aspo’s sustainability themes. The five pillars of Leipurin’s sustainability cover the entire food chain, from nature and fields all the way to consumers’ tables.
Miska Kuusela started as Leipurin’s new CEO on January 2, 2023. He transferred to Leipurin Group from the position of Myllyn Paras Finland Oy’s CEO. Kuusela has extensive experience in managerial positions in the food industry, and he previously worked as the CEO of Dava Foods Finland Oy and Helsingin Mylly. Under Kuusela’s leadership, Leipurin will continue to focus on selected growth clusters and improving its operational efficiency.