Record Revenue Masks Division Struggles (Image Credits: Pixabay)
Helsinki, Finland – Fazer Group posted record annual sales last year and signaled readiness for mergers and acquisitions to accelerate its international expansion.
Record Revenue Masks Division Struggles
Group sales reached an unprecedented €1.19 billion in 2025, a slight increase from €1.18 billion the prior year.
Comparable EBITDA fell 2.5% to €137.8 million, with the margin slipping 40 basis points to 11.6%. A €69.5 million goodwill impairment in the lifestyle foods division contributed to reported EBIT turning into a €1 million loss from a €46 million profit. Net profit shifted to a €19.1 million loss compared with €34.7 million previously. Comparable EBIT rose modestly to €77.8 million.
These figures highlighted resilience amid sector headwinds.
Confectionery Division Hits All-Time High
Sales in confectionery surged 6.9% to €580.6 million, marking an all-time peak even as cocoa prices remained elevated before easing recently.
Volumes strengthened toward year-end. President and CEO Christoph Vitzthum noted that cocoa price pressure and volatility should ease further. He forecasted a market recovery driven by volume growth.
This performance underscored Fazer’s strength in a volatile commodity environment.
Bakery and Lifestyle Foods Encounter Setbacks
Bakery sales declined 1.2% to €446.9 million after worker strikes in Finland disrupted operations.
The company expressed cautious optimism for 2026 amid intense private-label competition. Lifestyle foods sales dropped 12.8% to €190.5 million, hampered by sluggish cereals demand and plant-based drink challenges in business-to-business channels.
One bright spot emerged with Fazer Aito Oat Drink Barista, whose demand grew substantially in Finland and bolstered market share. Vitzthum highlighted this success amid broader division difficulties.
| Division | 2025 Sales | Change |
|---|---|---|
| Confectionery | €580.6m | +6.9% |
| Bakery | €446.9m | -1.2% |
| Lifestyle Foods | €190.5m | -12.8% |
M&A Emerges as Growth Driver
Fazer now actively seeks acquisition targets domestically and abroad.
“As we continue on our international growth journey, we are actively pursuing opportunities to expand not only organically but also through M&A and remain committed to exploring all avenues that enable us to strengthen Fazer’s position in both existing and new markets,” Vitzthum stated.Just Food
- Pursue bolt-on deals in core categories.
- Target new markets for geographic diversification.
- Complement organic expansion efforts.
- Enhance competitive edge against private labels.
2026 Outlook Balances Optimism and Caution
Fazer anticipates higher net sales and improved comparable EBITDA this year, assuming a gradually better operating environment.
Vitzthum pointed to salary hikes boosting consumer spending power alongside moderate inflation. Value-seeking persisted, however, alongside private-label rivalry and geopolitical risks that could affect costs and confidence.
Key Takeaways:
- Record group sales of €1.19bn despite mixed division results.
- Confectionery leads with 6.9% growth; bakery and lifestyle lag.
- M&A to drive international push amid 2026 recovery hopes.
Fazer’s strategic pivot to acquisitions positions the company for sustained growth in a competitive landscape. What steps should food giants take next in volatile markets? Share your views in the comments.
