The Wipf Group continues to grow successfully
Lockdown and all the uncertainty surrounding it was a stress test for everyone – in terms of both our personal and our professional lives. While the 2020/2021 financial year was dominated by the pandemic, the past financial year was affected by ongoing supply chain issues and rising raw material costs and shortages. Our top priority was ensuring continual supply across all of the Group’s businesses. We were determined to keep providing our customers with the same reliable, high-quality services. After all, one of the most important lessons we’ve learned over the past few months has been that nothing – not even the very best technology – can replace close customer contact, especially in times of crisis.
Adaptability has become a benchmark and a key success factor for the Group’s businesses. It means being able to react rapidly to changes, innovations, instability and drastic external events such as the war in Ukraine. While technology plays a significant role in this regard and is a major source of support, none of it would be possible without the determination of our employees.
After a 4.6% drop in revenue in the previous year due to the pandemic, the Wipf Group resumed its growth trajectory and managed to increase revenue by 8.1% in the year under review.
The economic scenario
The Swiss economy made a strong start to 2022, but the international outlook has since taken a turn for the worse. The war in Ukraine and the developments in China pose particular risks for the global economy. Within Switzerland, the leisure and hospitality sectors in particular began to show concrete signs of recovery. Positive developments in the labour market have bolstered private consumer spending, and inflation has stayed moderate on an international scale. We expect the Swiss economy to continue to recover in the short term.
Review of the 2021/2022 financial year
Group turnover increased to CHF 174 million (PY CHF 161 million). The EBITDA development was particularly positive; despite the challenging economic circumstances. The Wipf Group posted an increased annual result. Participations dependent on the advertising market that were acquired in earlier financial years once again imposed a burden on the operating result. Goodwill writeoffs on these acquisitions encumbered the result. Investments in fixed assets amounted to CHF 5.4 million (PY CHF 7 million) and were wholly financed internally thanks to high cash flows from operating activities. The equity ratio increased to a healthy level. The head count declined slightly to 570 employees (PY 576).
Outlook for the 2022/2023 financial year
The Swiss advertising market has experienced a significant recovery from the COVID-19 crisis. In 2021, gross advertising spending was 12.3% higher than in the previous year. This positive trajectory is continuing and is reflected in the majority of industries in 2022. Wipf is certain to profit from this development, too. We expect higher volumes in the areas of Digital Services and Direct Marketing in the project business.
Further information on fiscal year 2021/2022 can be found in our Annual Report.