The energy drink maker expects a profit of nearly 2.4 billion euros. 984 million euros were distributed to owners. Strong growth occurred in Europe and America.
Salzburg energy drink group Red Bull closed again in fiscal 2023 with sales and profit increases. Annual sales broke the 10 billion euro mark for the first time and were 10.55 billion euros in the previous year, an increase of nine percent compared to 2022 (9.68 billion euros). According to the consolidated financial statements for 2023 recently filed with the commercial register, operating profit increased from 2.29 to 2.38 billion euros (an increase of 3.9 percent) in the same period.
Last year, 984 million euros of profits were distributed as dividends to two owners – Mark Matschitz (49 percent) and the Yuvidya family in Thailand – half a billion euros less than in 2022 (1.51 billion euros). By far Red Bull’s most important markets are the US, where sales were 4.72 billion euros, and Europe, where sales were 3.94 billion euros. Growth was in double digits in both markets last year (10 percent in the US and 12 percent in Europe). However, sales in the remaining US markets fell 4 percent to 760 million euros. In the rest of the world, 1.3 billion euros were generated, with growth of 3 percent.
A billion for sponsorship
Red Bull’s marketing budget last year was 2.48 billion euros (2022: 2.29 billion), of which a good billion went to sponsorship, almost 800 million euros to advertising, 440 million euros to sales promotion for retailers and 120 million euros to sales promotion to consumers. The budget for research and development is just 2.44 million euros (2022: 2.82 million). The group paid 599 million euros in taxes last year – slightly less than the previous year.
The number of employees has also increased drastically. On average for the year, the group had 17,137 employees, compared to 14,895 in the previous year. Personnel costs therefore rose from 1.57 billion to 1.78 billion euros.
The Red Bull Group expects a further increase in sales in the current financial year, with the biggest medium-term growth potential still seen in the core markets of Western Europe and the US, as well as “future markets in developing countries”. “We believe further investments in the brand and strong cost awareness will lead to increased corporate profitability next year,” it said in the consolidated financial statements. (APA)
