Prepared-vegetable firm Bonduelle Group has posted 4.4% year-on-year growth in first-quarter sales at constant exchange rates, to €571.3 million, driven by price increases.
The company witnessed growth across all business units, except Bonduelle Fresh Americas (BFA), which was impacted by volume losses, partially offset by price increases.
The strengthening of the Russian rouble compared to the first quarter of the previous year and the continued weakening of the euro against the US dollar resulted in additional currency-related growth of 6.5%, linked to exchange rate variations, Bonduelle added.
Divisional Performance
Europe accounted for 61% of the company’s sales and posted a 9.5% increase, on a like-for-like basis.
According to Bonduelle, mass retail sales on the Continent remained ‘solid’, while out-of-home catering saw dynamic growth (15%).
The Bonduelle and Cassegrain brands continued to grow as the favourable summer weather boosted the brand’s ready-to-use fresh-produce business, and Cassegrain continued to list its new frozen range.
Sales outside of Europe increased by 4%, on a like-for-like basis, accounting for 39% of the company’s total revenue.
In the Eurasia region, the Bonduelle and Globus brands continued to enjoy solid growth, with group sales increasing by 4%, on a like-for-like basis.
Outlook
Bonduelle has retained its annual sales growth target of 8% to 11%, and it is targeting a recurring operating margin of 2.5%.
Record heatwaves in summer in many parts of the world and rainfall deficiencies weighed on agricultural and industrial volumes and yields, the company added.
While geographical diversification of crop areas and existing irrigation systems have partially mitigated these effects, the company has cautioned that costs induced by adverse climatic conditions and persistent and widespread inflation will result in further price increases during the year, limiting growth in sales volumes.
© 2022 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.