Bonduelle failed to meet its full-year growth targets as the vegetable processor felt pressure on its volumes, in part because private label customers quit.
Under pressure
The fiscal year ended in June with a 1.4 % sales decline to 2.37 billion euros – although that represented an increase of 2.7 % on a like-for-like basis. CEO Xavier Unkovic was disappointed by the results, as he was expecting substantial progress in both revenue and profit.
There was increased pressure on volumes, he said: in Europe, where the group earns two-thirds of its turnover, sales of canned and frozen products under private brands fell sharply due to “one-time changes in purchasing policy” – as in: a customer dropping out – while its own brand grew in both volume and value.
Profit secured
The bad weather in June also dealt a blow to fresh sales, mainly consisting of bagged lettuce and delicatessen items, causing sales to stagnate. There was sales growth of 3.3 % in Europe on a reported basis and 2.9 % on a like-for-like basis. Outside Europe, sales were up 2.4 % on a like-for-like basis, but down nearly 10 % on a reported basis. In North America in particular, volume declined in the last quarter.
In terms of earnings, Bonduelle nevertheless continues to count on an operating profit of around 75 to 80 million euros, good for a margin of more than 3 %. The producer will publish its complete results in October.
