Faber-Castell Accelerates Global Restructuring Strategy
Faber-Castell, a leading manufacturer of writing and drawing instruments, has announced an acceleration of its global transformation strategy in response to ongoing economic and political challenges. The company is intensifying the implementation of its strategic framework, known as 'ONE Faber-Castell,' to adapt to shifting market conditions and enhance operational efficiency across its international operations.
During the 2024/25 fiscal year, Faber-Castell was able to achieve modest growth when measured in constant currency, recording a 0.3% increase in sales. However, adverse currency fluctuations contributed to a 2.7% decline in total group revenue, which fell to 601.8 million euros. Profit margins also came under pressure, remaining below the previous year's level. The company noted that external factors, including ongoing geopolitical instability, stricter U.S. trade policies, and global consumer restraint, continued to impact performance across its markets.
In light of these conditions, Faber-Castell is expediting the rollout of its transformation plan, which aims to reinforce growth, boost efficiency, and leverage synergies throughout its global network. The company is reviewing the roles of its international production and distribution sites, with a focus on consolidating operations and establishing specialized competence centers. This approach is intended to strengthen Faber-Castell's competitiveness and ensure the long-term achievement of its business objectives worldwide.
As part of the company's ongoing 'Global Production Footprint' initiative, one of the first major actions will be the closure of its branch facility in Engelhartszell, Austria, scheduled for the summer of 2026. The Engelhartszell site, which specializes in the production of text markers, has seen a significant decline in demand for its core products. The plant's 41 employees were informed of the decision, and Faber-Castell has committed to providing support measures, including skills development and socially responsible transition arrangements. Production from the Austrian site will be relocated to the company's facility in Lima, Peru, ensuring uninterrupted supply for customers.
Faber-Castell's leadership emphasized the importance of global diversification and the need to capitalize on the group's international strengths. The company is undertaking a comprehensive review of all plants and subsidiaries, with decisions guided by long-term goals for revenue and profitability. While pursuing restructuring, the firm has underscored its commitment to fulfilling its social responsibilities, particularly regarding employees affected by operational changes.
The company's leadership remains optimistic about future prospects, identifying creativity as a central driver of growth. Faber-Castell continues to position itself as a lifelong companion for creative expression, serving a wide demographic from children and teenagers to professional artists. In addition to its core business, the company plans further expansion in its cosmetics division, which is expected to remain a strong and profitable segment. Dr. Franco Lucá, an experienced industry executive, has recently been appointed to lead this business area and oversee its development.
Faber-Castell's strategic adjustments are designed to secure its position as a global market leader in creative and cosmetic products, even as it navigates a complex and evolving economic landscape.