Italian poultry company Amadori reported a consolidated turnover of €1.23 billion in its financial year 2020, down 5.5% on the previous year.
The negative performance was due to lower out-of-home consumption and lower exports, imposed by the lockdown, as well as rising feedstock costs, the company added.
EBITDA dropped 22.6%, to €91.6 million, or 7.4% of revenues, while shareholders equity amounted to €285 million.
The growth in overall production (+1.76%), was not absorbed by consumption and exports, leading to an inevitable drop in prices.
Amadori closed its 2019 financial year with a turnover of €1.3 billion, up 3.9% year-on-year, marking its third straight year of revenue growth
The pandemic also caused negative effects on the prices of feed raw materials, with an increase in costs up to 22% for corn and 26% for soy flour, impacting the upstream part of the chain.
In spite of the general situation, the company has seen an increase in the consumption of poultry, with a 78.5% share, driven by the growing preference for products offering better customer service.
The company invested €80 million in 2020, out of a total investment plan of over €500 million, with the aim of developing integrated and 100% Italian supply chains.
The investment focused on the development of organic products under the 'Il Campese allevato all’aperto' and 'Qualità 10+' brands, and innovative products.
'Solid Development Strategy'
According to CEO Francesco Berti, Amadori Group was able to face 2020 "without any particular consequences, thanks to a solid development strategy and an ambitious investment programme."
Amadori has a 30% market share of total poultry meat in Italy and controls six food processing plants, five hatcheries, four feed mills and one processing plant, more than 800 farms both owned and contracted, three logistics platforms and 19 distribution centres.
© 2021 European Supermarket Magazine. Article by Branislav Pekic. For more Supply Chain news click here. Click subscribe to sign up to ESM: The European Supermarket Magazine.