Prepared fresh group Bonduelle has said that it expects to report profitability for 2021/22 below its initial expectations, as an 'unprecedented wave of inflation' impacts the business.
The French firm said that 'all cost components' were affected by inflation in the fourth quarter of its financial year, with cost increases growing in intensity as the quarter progressed.
It also noted that the recovery of its fresh business is proving 'more difficult than expected'.
Below Previous Guidance
Bonduelle said that it expects full-year growth in revenues and current operating margin to be below the previously-communicated guidances of +3% and +3.6% respectively, on a like-for-like basis.
'The difficulties encountered by the Bonduelle Fresh Americas business unit led the group to review
its medium-term profitability prospects, which may result in the impairment of tangible and/or intangible assets and deferred tax assets of this business,' it noted.
In May, the group reported a 4% increase in revenue like-for-like basis in the third quarter of its financial year, driven largely by the performance of its Europe division.
Sales in Europe were up 9.4% in the third quarter, which followed on from a 'steady' first half at the group.
On the ongoing war in Ukraine, Bonduelle said in May that while it was maintaining its operations in Russia, it would allocate all profits from sales in the country to the future reconstruction of infrastructure and agricultural and food ecosystems damaged by the conflict in Ukraine.
The group recently appointed a new CEO to its Italian business.
© 2022 European Supermarket Magazine – your source for the latest Fresh Produce news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.