French tinned food giant Bonduelle saw its returns increasing to 1.4 billion euro in the first six months of fiscal year 2017/18. This is 38.5 per cent more than in the same period a year previously. The higher returns are thanks to the takeover of Ready Pac Foods, which was part of the company for the full six months. On a comparable basis, returns increased by 1.6 per cent. The exchange rates didn’t have much influence on the results.
The European market, good for 45 per cent of consolidated returns, was stable with returns of 633.3 million euro. Within tinned foods, market share of the Bonduelle and Cassegrain brands increased at the expense of activities for private labels. The frozen segment for retail and catering also increased, although that effect was partially annulled by the lower returns of industry and other food companies. The fresh processed products (salads and mixed lettuce, among other products) experienced a slight growth during the second quarter. Although a slightly rising trend can be seen in the second quarter, Bonduelle describes the European market as ‘a slow consumption climate.’
Outside of Europe, the market is good for 55 per cent of returns nowadays, which amounts to 787 million euro. Due to the integration of Ready Pac Foods, the return on this market doubled for Bonduelle. The market increased by 4 per cent on comparable basis with last year.
A slight improvement in the consumption in Russia, a good basis for comparison, and a good market boost results in Eastern Europe to a solid growth in the first six months of the fiscal year. The tinned food and frozen market is stable in North America. This coincides with a limited production capacity. In Brazil, a delay is expected on the market due to repositioning of the tinned food segment. “That explains the limited development in activities in this region in the first six months,” according to Bonduelle in a press release.
Ready Pac Foods, renamed Bonduelle Fresh Americas, reported a growth of 8.5 per cent in the first six months of the fiscal year. With it, this part confirmed the expected growth despite the limited disruptions in supply.