Industrial Toy Manufacturer Injusa, based in Ibi, reported a notable year of recovery after the most challenging phase of the pandemic. Last year’s sales climbed by two million euros compared with the previous period, helping the company return to profitability following a setback in 2020. While early signals look positive, executives anticipate that 2025 may bring softer results due to a dip in consumer spending amid ongoing inflation.
Injusa, a producer of electric ride-ons, children’s tricycles, and garden and pet products, shared its 2021 results, illustrating a turnover of 14.7 million euros. The company posted a positive operating result of 245,356 euros, rebounding from a 534,247-euro loss the year prior. The figures reflect a clear rebound in demand as markets reopened and shoppers resumed discretionary spending.
The company’s director, Luis Berbegal, attributes the improved balance sheets to a robust recovery in sales after the height of the health crisis. He notes, “Following long periods of restraint and confinement, there was renewed market enthusiasm. This surge is visible in our accounts, as consumer spending picked up.”
However, this resurgence also creates headwinds. Berbegal cautions that oversupply in retail channels and high inventory levels may dampen results in the current year. He explains, “There has been an oversupply in stores and inventories that are costly to move,” highlighting the challenge of clearing stock as demand normalizes.
On the international front, Injusa allocates around 80 percent of its production for export. Berbegal points to global instability as a drag across markets, noting that the volatility has not benefited the company. In addition, rising inflation is feared to curb consumer demand for higher-quality toys that Injusa offers, even as cheaper mass-market products continue to sell well. “Our toys are quality items that some families still cannot reach,” he remarks, underscoring the market gap between value and premium offerings.
The firm also grapples with higher costs of raw materials, freight, and energy. The energy bill has been particularly painful, rising from approximately 21,000 euros per month to a much higher figure, placing pressure on margins. In response, Injusa invested 800,000 euros in installing solar panels, a move expected to reduce energy costs by about 30 percent. Berbegal cautions that cost pass-through to customers is difficult, as higher prices could render some products unsellable. Despite these challenges, the manager stresses that the company remains in a solid position to absorb current imbalances and pursue strategic improvements, including energy efficiency upgrades and careful inventory management. [Citation: Injusa annual results press release, 2021]
Looking ahead, the leadership emphasizes a balanced approach: they will support targeted growth in core product lines while strengthening operational resilience to weather inflation, supply chain volatility, and exchange-rate fluctuations in key export markets. The path forward includes ongoing evaluation of production efficiency, cost control, and demand forecasting to protect profitability in a consumer climate that remains sensitive to price. [Citation: Industry briefing, 2021–2022 update]