The French fruit and vegetable processing company, Bonduelle ended the 2017-2018 financial year with a turnover of EUR2,8 billion. This was despite a continued slow market in Europe and the US. There was also only a slight improvement in the Eastern European market. This higher revenue is mostly thanks to this company's take-over of Ready Pac Foods. There is, however, signs of growth in various markets.
The Eurozone is good for almost half (46,5%) of Bonduelle's turnover. Over the fiscal year, sales increased by 1% compared to a growth of 0,2% the previous year. The fourth quarter performed well with a revenue increase of 2,6% on a comparable basis. This growth was realised in all three segments of the company. New products contributed to this increase. The weather was also better, and there were no disruptions in production.
Increased turnover thanks to take-over
The increase in sales can be almost entirely contributed to Ready Pac Foods. This company was acquired by Bonduelle in May 2017. Thanks to the incorporation of this company, Bonduelle's revenue rose by 23,6%. There was also a slight natural growth of 0,3%. However, a part of this growth was lost due to the negative effect (-2,6%) of the foreign exchange rate. In particular, the changing rates of the American and Canadian Dollars and the Russian Rouble affected this result. In the fourth quarter alone, a company decline of 7,1% was noted. It is, in large part, the exchange rate that caused this shrinkage. On a comparable basis, a fall of 1,8% was recorded.
More sales outside the EU
Since that book year, more than half (53,5%) of sales have been made outside of the Eurozone. These were mostly concluded in North and South America and Central and Eastern Europe. The group noted an increase of 47%. However, on a comparable basis, this figure fell by 0,5%. This is a result of the complete acquisition of Ready Pac Foods. This company's results were taken into account for three months of the previous year. This is the first year that their results were included for the full financial year.Several factors contributed to the limited, comparable growth outside of the Eurozone. Firstly, the production capacity for canned and frozen goods in North America has reached saturation point. The 2017-2018 fiscal year also only had 52 weeks versus the 53 weeks of the previous year. Then, there was a decrease in Bonduelle Fresh Americas' activities in the convenience segment over the fourth quarter. In eastern Europe, the company grew, although this growth was not comparable to that of the previous year. Finally, there was a progressive strengthening of Bonduelle's partnership with Unilever in Brazil and the development of this business model.
On 4 July 2018, Bonduelle completed their take-over of Del Monte Canada, a division of Conagra Brands. This company processes fruits and vegetables. This acquisition gives Bonduelle the right to use the Del Monte label in various segments of the processed fruit and vegetable sector. Stock, valued at Canadian $43 million, was also taken over. Bonduelle is not acquiring any fixed assets or staff. They will, however, accommodate production within existing Bonduelle facilities.