Nutella And Nutella Biscuits Boost Ferrero’s Results In FY 2019
Italy’s Gruppo Ferrero reported a consolidated turnover of around €11.4 billion, up 6.2% year-on-year, in its financial year ended 31 August 2019.
The company generated almost €8.1 billion of its total turnover in Europe, driven by strong performance in Germany and France.
In non-European markets, the confectioner's turnover amounted to approximately €3.3 billion, with the US as a top performer.
Growth was mainly driven by Nutella, Ferrero Rocher, Kinder Bueno, as well as new products such as Nutella Biscuits and Kinder Cards, which were launched in some markets.
The sales data for Nutella Biscuits only includes the period between May to August 2019, when the product was only sold in France.
The multinational confectionery company saw profits increase by 4.3% to €703 million, with a profit margin of 6.2%.
The group invested €663 million in expanding its production capacity and installing new equipment, mainly in Italy, Germany, Canada, Poland, Belgium.
It also completed the construction of its new headquarters in Luxembourg.
Last year, Ferrero also finalised the acquisition of a portfolio of biscuit brands from Kellogg Company, including Keebler, Famous Amos, Mother's, Murray and Little Brownie Bakers.
It also acquired a majority stake in Spain’s Ice Cream Factory Comaker (ICFC).
Expansion Plans For Nutella Biscuits
After successful launches in France and Italy, Gruppo Ferrero is planning to rollout Nutella Biscuits in Germany from April 2020.
The company, which sold more than 17.5 million packs of Nutella Biscuits up to 26 January 2020, has increased production levels by 30% at the Balvano plant from 1 February, according to IRI data published by Il Sole 24 Ore.
Nutella Biscuits account for 15% of the €1.2 billion Italian biscuit market.
Initially, Ferrero forecast annual sales worth €70-€90 million from Nutella Biscuits in Italy.
© 2020 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.