Due to purchases and higher prices, the turnover of Upper Austrian food giant Vivatis increased to almost 1.3 billion euros last year. But due to the exploded costs, the returns seem meager.
Higher prices mean significant sales increases for food giants. But the high costs are reducing yields, according to Gerald Hackl, head of the manufacturer Vivatis, part of Raiffeisen Upper Austria. It includes brands such as KnabberNossi, Wojnar and Inzersdorfer.
Hackl: “Despite a cost reduction of ten percent compared to 2022, we are still 40 percent above the 2019 level.” Hackl specifically mentions the high energy costs (+70 percent compared to 2019). Commodity prices are also 38 percent higher than before the pandemic. The brand manufacturer must spend 20 percent more on packaging. “We expect another 50 million euros in additional costs by 2024.” This year, wage increases will be particularly important. Vivatis cannot pass on all additional costs, but according to the company must bear them itself.
Also because profit margins are declining and for some products are even below three percent, Vivatis is mainly concentrating on ‘healthy’ growth of the company. The latest acquisition was the Romanian Enigma, which supplements Maresi’s brand portfolio with non-food products. In addition, Austria’s largest insect farm was built in Andorf, Burgenland. In the future, 2,400 tons of fly larvae will be bred for the production of animal feed. The Styrian Vivatis subsidiary Purea is responsible for further processing into insect meal.
Subsidiary Gourmet serves 300,000 people
However, the group’s most important growth comes from subsidiary GMS Gourmet. More than 300,000 people are cared for here, for example in schools, hospitals and companies. This is a very crisis-resistant company. VIivatis has also established a subsidiary in Germany. In Vienna, the portfolio also extends to the higher floors: the Gerstner brand, known as a traditional coffee house and caterer of the Opera Ball, is flourishing.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
