Newlat Food Sees 71% Growth In Net Profit In FY 2019
Italian agri-food group Newlat closed 2019 with a consolidated net profit of €10.2 million, up 71% from €5.9 million in 2018.
The company, listed on the Milan Stock Exchange since October 2019, reported consolidated revenues of €320.9 million (+4.9%), in line with its business plan.
Consolidated EBITDA was up 17% to €28.3 million, while the EBITDA margin was 8.8%.
The company attributed its positive performance to the implementation of cost optimisation measures and fewer product promotions.
According to chairman Angelo Mastrolia, the group performed better than the market despite a slowdown in industrial production in Italy and Germany.
He also pointed out that the positive trend continued in the first month of 2020, with sales figures outperforming the market and consolidated volume growth in value-added businesses such as bakery, dairy, and special products.
Newlat's acquisition strategy will put special focus on Germany, Italy, and the UK, the company said.
It will also explore opportunities in other countries outside of the European Union.
The company has also highlighted that it has not adopted any binding decisions on possible acquisitions.
Targets for possible acquisitions include the health and wellness segment in Germany; milk, dairy and healthy food sector in Italy; ambient food in the UK; pasta, bakery, and instant food in the Netherlands.
It is also likely to explore acquisitions in pasta, bakery products, and ready-made sauces sectors in Italy.
The company confirmed that it is negotiating for multi-year baby food supply contracts with interested parties and expects to conclude at least one of these negotiations by the end of March.
© 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.