Bonduelle's turnover growth exceeding objective
Over FY 2015-2016 (1st of July 2015 - 30th of June 2016), the group`s turnover reached 1,967.7 million of Euro, an increase of 2.4% at constant exchange rates, a growth therefore greater than the objective initially announced of a 2% increase in turnover on a like for like basis*. After taking into account the negative impact of foreign exchange rates - mainly the Russian rubble - the turnover was down to 0.7% in absolute terms for 2015-2016 FY.
Q4 turnover (1st of April - 30th of June 2016) reported an increase of 1.5% on a like for like basis* and a fall of 1.8% based on reported figures.
Europe Zone
The turnover of the Europe zone (65% of the total turnover) reported virtual stability on a like for like basis* both for Q4 (-0.2%) and for the full FY (-0.4%). Remarkable results were recorded for the retail sales of branded products (Bonduelle and Cassegrain) in canned, frozen, fresh processed and in food service with the return of growth in both volume and value for the frozen operating segment, giving rise to market share gains. The sales growth of branded products was offset by the lower sales volumes and price declines observed in the canned operating segment for private labels, segment where, given the current market conditions, the group has decided to restrict its activities.
Non-Europe Zone
The Non-Europe zone (35% of the total turnover) confirmed its growth area status with an annual increase of 8.2% on a like for like basis* for this FY. Given the adverse exchange rates impacts, the zone recorded a decline of 1.1% based on reported figures.
In Russia, despite declining markets, the group reported a positive turnover growth over this FY, thanks to an appropriate pricing and promotional policy, while maintaining its products accessibility and market shares.
In Northern America, the group continued to consolidate its positions both in Canada and USA, notably in Canada and for the sales to the US coming from the Canadian plants thanks to the competitiveness of the American/Canadian dollar parity.
In Brazil, the group successfully repositioned the Bonduelle branded canned range as a locally produced premium range moving from volume growth to a more differentiated and added value offer.
Highlights
Shutdown of the activity of the plant based in Russy-Bémont (Nord-Picardie, France).
The plan for restructuring its canned industrial facilities in north of France announced at the company`s central works council on the 25th of January 2016, led in June 2016 to the shutdown of the activity of the plant in Russy-Bémont; the logistical activities are due to continue until the end of September 2016. Redeployment offers within the group have been proposed to the 62 employees concerned. A non-recurring charge currently estimated at 9.5 million Euro will be recorded in the financial statements on the 30th of June 2016 to cover the costs of the job-saving plan and the depreciation of the installations and equipment concerned.
Harvests
The beginning of the crops, particularly for peas, proved to be difficult in Nord Picardie and Russia (heavy rainfall and low temperatures) and in Northern America (drought). While only covering a part of the summer harvests, ongoing until October, and a part of the group`s production pools, the adverse effects of bad weather will affect the volume and production costs of the 2016 harvest.
Changes in the group organization
To take into account the size of the commercial and agro-industrial activities in Russia, Kazakhstan and Belarus, the maturity and weight of this area, on the 1st of July 2016 all those activities will be brought together to create a dedicated business unit: Bonduelle Eurasian Markets (BEAM), directly represented on the Group`s Executive Committee.
In addition, a "Prospective and Development" unit has been created. The unit`s mission is to go beyond the group`s existing temporal and geographical horizons. It brings together long term R&D activities, numerical technologies, international sourcing and manages the group`s geographical expansion, outside the existing Business Units. It also aims at creating and building relationships with innovative companies sharing the group`s strategic ambition of "to be the world reference in "well-living" through vegetable products."
Outlooks
The growth recorded over this FY and the positive revenue trend observed in the second half confirm the outlook of a greater current operating profitability at constant exchange rates for 2015-2016 compared to previous FY, as announced in March 2016.
* at constant scope of consolidation and exchange rates