NEW SET UP, NEW FOCUS
Leipurin operates as part of the food chain, sourcing raw materials in global markets and from domestic companies and supplying them through its effective logistics chain to serve customer needs. With operations in six countries including Finland, Sweden, the Baltic countries, and Ukraine, Leipurin serves bakeries, the food industry, and food service customers by providing raw materials, supporting research & development, recipes, and innovations for new products.
In 2023, Leipurin East with operations in Russia, Belarus and Kazakhstan were detached completely from Leipurin. An agreement to sell these operations was signed, but the process to close the case with approvals from Russian authorities continued throughout the year, still waiting for completion when entering year 2024.
ENTERING NEW MARKET SEGMENTS IN SWEDEN
Swedish Kobia, acquired in 2022, was on board at Leipurin for its first full year. Integration activities continued throughout the year, and the operating models of Kobia and Leipurin were aligned. The sale and leaseback of Kobia’s facilities was successfully completed. Kobia entered new market segments, and synergy realization proceeded as planned, continuing in 2024 with further commercial synergies. A significant efficiency improvement potential was identified in the supply chain.
FURTHER FOCUS FOR FINLAND AND BALTICS
Finland performed extremely well under new country management, demonstrated not only in financials, but also in drastically improved Net Promoter Score and employee satisfaction ratings. The biggest single move during the year was divesting the remaining machinery business, turning the business focus even more to food ingredients. Market expansion outside the bakery industry started a few years ago and has turned into a significant new business leg. This initiative is being pushed forward in all Leipurin countries.
Baltics accomplished a good result overall. Biggest changes were made in Lithuania, with renewed management, and the turnaround from a commodity generalist towards a more specialized product and customer mix was started. Leipurin Lithuania facilities were sold, and the operations will move to a more modern setup in 2024.
CLARITY THROUGH COUNTRY-BASED OPERATING MODEL
The Leipurin Group operating model and management structure has been changed from the previous matrix to more country-based businesses with clearer P&L responsibilities, while still recognizing the synergy benefits in common sourcing, cross-selling, and administrative functions across the Group.