Value creation with impact
At Beckers, value creation goes beyond sales growth and profit maximization. Financial and non-financial indicators alike determine corporate strategies and success.
GRI 2–19
Profit and prosperity
Value creation, for us, is more than sales growth and profit maximization. Financial and non-financial indicators alike determine corporate strategies and success. We thus set financial and non-financial performance targets, which are followed up in our reporting system. Examples of performance targets include, product sustainability, people safety indicators, and energy efficiency among many others. In order to develop our operations, maintain good stakeholder relations and to be a valued corporate citizen, we need to ensure stable financial results. Global reach and local presence are key for our future success, but equally so is our sustainability work. Our Chief Financial Officer holds the dual role of Compliance Officer and is responsible for managing financial risks and for correct reporting of Beckers Group’s performance. The Group net interest-bearing debt includes interest-bearing liabilities and provisions for these obligations, minus interest-bearing receivables, cash, and cash equivalents.
Financial performance
Our markets were solid in 2021 and despite the supply chain challenges, volumes increased by 5 percent. Sales at constant exchange rates increased by 15 percent. All sites passed price increases on to customers to offset the significant increase in raw material costs. There was, however, a delay between the price increase to customers and escalation in raw material cost, which led to a decrease in our value-added ratio. Nevertheless, operating margin (EBIT) is better than last year.
Investments in Sustainability
We have introduced a new global Capex process with a focus on sustainable investments. This is supported by newly created positions, such as VP Global Operations Development and Environment & Energy Manager.eastNew Operations positions In addition, we have developed the “Paint Plant of the Future” (PPF) concept as a benchmark for modernizing our plants, with the aim of being more efficient and more sustainable.eastPaint Plant of the Future Looking ahead with the strategic plan for 2022-2025, 94 percent of the investments will directly contribute to our 2030 Sustainability Strategy.
Value Creation at Beckers
We believe that value creation goes beyond sales growth and profit maximization. That is why we have adopted the fundamental principle within our organization that both financial and non-financial management, controlling, and targets determine corporate strategies and success. We judge the success of our business model in terms of our impact on people and the planet as well as financial profits. In 2020, we laid the foundation for that. In 2021, the sustainability targets became part of individual target setting for employees. The targets are developed by the Sustainability Council and the Stream Teams, verified by the Executive Committee and finally approved by the Beckers Board of Directors. The Executive Committee’s compensation is linked to progress towards our 2030 goals.
In addition, we at Beckers can contribute to society and the environment by providing products that reduce negative impact while at the same time creating value for customers and end users. We call these net-sustainable products.
Such products have a positive balance of material and functional sustainability characteristics and are our most sustainable products. They are defined by having Beckers Sustainability Index (BSI) values that exceed pre-defined threshold scores. The net-sustainable class is derived by considering all five indicators of sustainability in our BSI tool in a holistic way. It is their combined and optimized score (rather than just simply maximizing one indicator) that enables us to make the claim net-sustainable.
eastSee also Beckers Sustainability Index
