French vegetable processing company Bonduelle Group has reported consolidated turnover of €2.8 billion in full year 2017/18, which is 21.4% higher than the previous year.
This growth was achieved amidst a sluggish consumption environment in Europe and the USA and slow, but improving conditions in Eastern Europe.
Acquisition Drives Growth
The acquisition of Ready Pac Foods was a major driving force behind Bonduelle's impressive growth in the last financial year.
Europe accounted for 46.5% of the group's turnover, while the 'non-Europe Zone', comprising the Americas, Central and Eastern Europe generated 53.5% of turnover in 2017/18.
There was a 47% rise in activity in the non-Europe zone due to the full-year integration of Ready Pac Foods in the period.
Growth was also hampered by the effect of exchange rates with the US dollar, the Canadian dollar and the Russian rouble.
Expansion Beyond Vegetable Products
Recently, the group also announced the acquisition of the Canadian business of Del Monte from American packaged food company Conagra, for CAD 43 million (€28 million).
The acquisition gives Bonduelle rights to use the Del Monte brand on a range of processed fruit and vegetable products. However, it excludes industrial assets and personnel, as Bonduelle will be using its existing production sites.
According to the company, this acquisition highlights the 'desired development in brand activities and expansion beyond vegetables to vegetable products.'
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.