The Italian food sector as strong enough to support investment plans for growth and attractive for potential foreign investors, according to ratings agency CRIF.
The Italian food and beverage industry is one of the sectors that has best withstood the impact of the economic crisis, it says. Between 2007 and 2015, the nominal added value grew by 4% (compared to a 15% drop for the manufacturing sector), thanks largely to a 58% growth of food exports (+14% for the manufacturing sector).
After years of deterioration, margins began to climb in 2014, a trend confirmed in 2015 with an EBITDA margin of 7.2% (6.9% in 2014 and 6.3% in 2013), a level substantially in line with the 7.3% in 2007.
There has also been a reversal of trend, again starting in 2014, for investments, albeit modest. The impact of investments on sales increased from 2.7% in 2013 to 2.9% in 2015, still below the pre-crisis period (4.3% in 2007).
Leading the growth in investments have been strong commodities such as wine, pasta and coffee, which account for at least one third of Italy’s foreign exports. Exports in food have grown steadily in recent years, but today is still at 21 per cent.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.