German holding company Horst Brandstätter Group (HBG, Zirndorf; www.horst-brandstaetter-group.com), parent of toymaker Playmobil and plant pot producer Lechuza, reported that group sales declined nearly EUR 250 mn in just two years.

In the financial year 2021/22 (ending 31 March), HBG’s sales had still been at EUR 736 mn. In the following year, however, they fell by almost a quarter to EUR 571 mn and declined another 14% to just EUR 490 mn in the past financial year 2023/24.

The company, which experienced several changes at top management level in recent years, cites a “weak economy, stubborn inflation, rising labour, transport, and energy costs” as well as “sluggish consumer spending and reluctance to spend” as reasons for the downturn.

The group plans to counter the recent developments with a rigid cost-cutting programme, the elimination of 700 jobs worldwide, the reorganisation of marketing and product development, and new products. The Playmobil Junior toddler portfolio, for example, was recently switched from fossil to 100% plant-based materials. HBG also plans to expand the range of collectible toys for adults 

Playmobil already appears to consider the new strategy, presented at the Nuremberg toy fair in January 2024, to be successful: after two difficult years, the company now announced “a positive forecast for the coming months”. In addition, cost management in its production “has led to significant savings and a reduction in inventories without jeopardising the ability to deliver”.

The traditional brand, which is celebrating its 50th anniversary this year, is hoping for publicity and a turnaround from the European Football Championship, which starts in Germany in mid-June. It is planning a “major cooperation” with German football association Deutschen Fußballbund and retail giant Edeka. The Zirndorf-based toymaker did not provide any specifics on the collaboration, however.

— Translated by Christopher Köbel