Niklas Lindholm appointed as Vice President, Human Resources in Paulig Group
Niklas Lindholm has been appointed as Vice President, Human Resources in Paulig Group. Niklas comes from Nokia Corporation where he has held several HR positions in different countries, latest as HRD Director in Nokia Demand-Supply Network.
Niklas has a solid background in HR leadership and processes. The functional expertise, combined with his wide experience in working in different cultures, will be a perfect match for Paulig Group’s objectives and long term goals.
Niklas is a member of the Group’s management team.
Funds causing fluctuations on the green coffee market
Recently it has been extremely difficult to forecast the price of green coffee by looking exclusively at the coffee scene. To assess the price trend, it is necessary to keep at least one eye on other commodity markets and the rate for the US dollar. At the end of June, the world market price of coffee climbed 15 per cent as funds bought into the commodity market. In the beginning of July, the price fell back quickly to its starting level as the funds moved their investments out of commodities. Since then, the coffee market has calmed down somewhat.
Coffee production and demand appear to be maintaining a reasonable balance for the year ahead. A prerequisite for this is that the Brazilian harvest of more than 50 million sacks is a success. Vietnam’s forecast harvest of 21 million sacks is needed to meet the demand for Robusta grade. If weather problems are avoided and production goes as expected, the price of coffee is likely to hold steady.
The interest of funds in the commodity market and coffee will continue to be hard to predict in the future. Investments will be influenced by such factors as the trend in the global economy and the stock market. There is plenty to think about there for coffee-buyers.
Half-year review – Second half of year shaping up like the first
Business in the first part of the year has gone as forecast – as shown by the figures. The budgeted net sales and operational result were achieved in coffee, seasonings and Mexican food. The combined net sales of Paulig and Santa Maria reached almost 350 million euros, of which coffee accounted for more than 30 per cent, Santa Maria’s seasonings and Mexican food for roughly 60 per cent, and other seasonings business (mainly industrial seasonings) for approximately 10 per cent. Profitability continued to be good in all business sectors. The half-year operational result was over 20 million euros, which includes 8.6 million euros in non-recurring proceeds on sales.
The Group’s financial position has remained favourable, although the capital costs of the new roastery have increased debt. The high price of green coffee has also tied up capital. The Group’s equity ratio is still over 70 per cent.
The second half of the year has started at the same pace as the first, and if these conditions continue, we forecast net sales to rise to 700 million euros.
Puljonki is now a Paulig subsidiary
Paulig’s Danish subsidiary Oscar A/S increased its holding in the Finnish company Puljonki Ltd to 70 per cent when one of the two founding partners in the company, Sauvo Hiltunen, sold his interest. The other founding partner, Kai Iiskola, continues as company Managing Director.
Oscar has been a minority shareholder in Puljonki since 2006. Both companies manufacture high-quality bouillons, sauces and soups intended mainly for professional users. Rapid growth has boosted Puljonki’s net sales to almost 10 million euros. The company has more than 20 employees.
“Oscar and Puljonki are united by making products from the best raw materials using innovative manufacturing methods and in having a customer base that appreciates quality. This will provide excellent opportunities to further develop the companies’ business together,” says Jaana Tuominen, Chief Executive Officer and Managing Director of Paulig Ltd.