French group confirms its profitability target despite what is called a “difficult consumer environment”
The Bonduelle Group has posted an increase in annual revenue on a like-for-like basis and confirmed its profitability target despite a ”difficult consumer environment”.
For the 2023/24 fiscal year ended June 30, group revenue stood at €2.37bn, an increase of 2.7 per cent on a like-for-like basis.
After taking exchange rate variations into account, revenue showed a decline of 1.4 per cent on reported figures.
”Despite more moderate sales growth over the last two quarters, which does not make it possible to deliver our annual revenue growth target, the group confirms its objective of increasing recurring operating income, thanks to the good performance of branded activities and the effectiveness of internal productivity and cost-control initiatives,” Bonduelle said.
The group’s Europe Zone, representing 65.7 per cent of business activity over the fiscal year, posted a growth of 3.3 per cent on reported figures and +2.9 per cent on a like-for-like basis, up to €1.56bn and €1.51bn respectively.
In the fresh processed (bagged salads) and the fresh prepared segments, business activity “suffered” in the fourth quarter, and particularly in June, from poor weather and an unfavourable base effect compared with the same period last year, Bonduelle reported.
The end of the financial year was marked by increased pressure on volumes leading to a revenue slightly lower than expected but including a favourable products and brands mix, it noted.
“This commercial mix, added to competitiveness initiatives and strict control of our overheads, should make possible, despite a late and delicate start of harvests due to the weather context, to reach a current operating profitability for the 2023/24 fiscal year at the top of the target announced in October 2023,” the group added, “i.e. €75m-€80m at constant exchange rates, and a current operating margin above 3 per cent.”
