Prepared-vegetable firm Bonduelle Group has posted a 6.1% increase in revenue on a like-for-like basis to €1.3 million in the first half of its financial year.
The company attributed its growth to price increases. Its second-quarter revenues grew by 7.6% on a like-for-like basis compared with the first quarter.
Increase in group revenue in the second-quarter was mainly due to good performance in its canned and frozen businesses, the company added.
Bonduelle believes that its growth and profit in the financial year 2022-2023 will depend on the dynamics of consumption and on price increases.
In the Europe zone, which accounted for 59.4% of the company's business activity in the first half, revenue increased by 12.3% on a like-for-like basis.
The company has decided to continue with its decision strategy of price increases to partially compensate for inflation in production costs, particularly in canned and frozen activities.
It saw a limited decline in volumes over the period and implemented quotas on certain products following a deficit harvest.
The frozen products division saw positive volume growth in food service as well as retail.
The ready-to-use fresh segment, where cost and price increases were more limited, showed growth in value and stability in volumes.
Supply difficulties and less dynamic markets in salads were offset by a dynamic summer season in the processed segment, the company noted.
Revenue outside of Europe represented 40.6% of the company's business activity in the first half of the year. Like-for-like revenue for the period declined by 3.4%.
The Eurasia zone posted higher revenue, linked to price increases. Volumes in this area were slightly down on the previous year.
In North America, the ready-to-use fresh segment also witnessed a decline due to loss of contracts in the second half of financial year 2021-2022.
It was also impacted by a declining salad segment and the agronomic crisis affecting salad yields in the Salinas region, which resulted in a significant shortage of products and rise in purchase prices.
© 2023 European Supermarket Magazine – your source for the latest fresh-produce news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.