A leading supplier of plastic raw materials, industrial chemicals and lubricants
Telko is a leading distributor and solution provider for converters and brand owners looking to safeguard their business with future-proof plastics, chemicals or lubricant solutions. This is done by using industry-leading expertise, strong partnerships and renowned service capabilities to improve Telko’s customers' production lead times, material efficiency, and financial and environmental performance. Telko operates in 15 countries and has sales in more than 30 countries.
Major changes in the operating environment
Russia’s invasion of Ukraine had a significant impact on Telko’s business operations and operating conditions in eastern markets. The withdrawal decision was already made in the spring and in October 2022, Telko signed a binding preliminary agreement on selling all shares in its subsidiary in Russia to a Russian industrial company. In December, Telko finalized the preliminary agreement to sell all shares in its subsidiary in Belarus to a member of its current management. Both business transactions still need to be approved by the local authorities.
Despite the decreases in net sales and results in Russia and other eastern markets towards the end of the year, Telko’s comparable operating profit for 2022 remained close to the previous year’s record-high figures.
Business acquisitions and scalability
In 2023, Telko’s net sales and results will be significantly lower than in the previous year due to the changed situation in Russia, Belarus and Ukraine. In other countries, demand is expected to remain moderate, even though there will be differences between businesses.
In addition to organic growth, Telko will continue to accelerate its growth through business acquisitions. Telko will also continue its activities to improve its operational efficiency and scalability. In recent years, Telko has consistently reduced the proportion of volume products in its range and correspondingly increased that of special products, as a result of which its tolerance of price fluctuations is better than before.
Development of sustainability activities continues
In 2021, Telko defined business-specific sustainability goals, of which helping the entire value chain reduce emission intensity is the most significant. Telko is currently preparing a progress plan for its indirect Scope 3 emissions. Good governance has given Telko a competitive edge for years, especially in eastern markets. In 2022, Telko received the gold level of the EcoVadis sustainability certificate, and the company’s goal is to achieve the platinum level no later than by 2025.
Telko closely complies with all environmental and safety regulations and invests heavily in eco-friendly alternative plastic raw materials. Telko’s environmental protection practices are under constant development in accordance with the principles of the ISO 9001 standard. In 2022, Telko received the ISO 14001 environmental certificate, covering all of its units in the EU. Industrial sectors that use plastic raw materials require options for conventional raw materials and seek to find eco-friendlier solutions. In their R&D activities, major raw material producers are investing heavily in alternative bio-based or biodegradable materials.