Italian dairy group Granarolo reported 19% growth in net profit in 2020, to €15.8 million.
Consolidated revenue dropped 3% year-on-year to €1.28 billion, due to reduced sales in the HoReCa and foodservice channels in Italy and other markets. This was partially offset by growth in the large-scale retail channel.
Despite a challenging and complex year, Granarolo managed to meet its profitability targets, the company said. EBITDA stood at €78.5 million, or 6.1% of revenue (+8%), with EBIT of €28 million, equal to 2.2% of sales revenue.
The group’s sales have traditionally been concentrated in Italy (66.8% of revenue), while foreign sales represent 33% of total turnover.
European sales increased one percentage point to 28.2% last year, while sales in extra-European markets fell by 10.9 percentage points to 4.9%.
The company's net financial position stood at €164 million as of year end, an increase of €2.6 million compared to 31 December 2019.
Despite a fall in sales of fresh milk, Granarolo committed to collecting all the milk produced by Italian dairy farmers in the Granlatte supply chain, as well as sourcing dairy from other farmers outside the chain who were struggling.
Granarolo believes there is cause for concern regarding the recovery of markets, citing forecasts from Italian national statistics agency Istat that warns that many families are facing financial difficulties, amidst falling GDP and a third of the HoReCa sector potentially closing for good.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine