Italian cake producers Bauli and Balocco have both posted a positive end to 2018, announcing plans to expand production at home and abroad.
Holding one third of the market, Bauli confirmed its leadership in the panettone and pandoro segment (where it is present with the Alemagna, Motta, Doria and Bistefani brands) with a turnover of €472.6 million, up €22.6 million on the previous year.
Net profit amounted to €10.2 million (a decline by €0.5 million), according to data published by Il Sole 24 Ore.
In the same period, EBITDA dropped from €47.8 million to €42.5 million, due to an increase in raw materials (mainly butter) and costs related to the commencement of production in India.
The company is hoping to reach a turnover of €30 million at the Baramati facility and is also eying China withe increasing interest.
Balocco Growth
Balocco, meanwhile, saw turnover grow from €185 million in 2017 to €190 million in 2018, reports Radiocor.
Over the last ten years, the company has invested more than €50 million in R&D and the expansion of production lines.
The assortment has been increased with the addition of products such as shortbread, as well as a new premium brand, 'Bottega Balocco - Italian Bakery 1927'.
Exports currently account for 13% of its total sales and its products are now distributed in 67 countries.
New production lines are under construction at the Fossano plant near Cuneo, dedicated to bakery products destined for exports.
Pandoro Pride
There is also cause for celebration at Melegatti, a company which patented the pandoro cake in 1894 and barely managed to prevent closure after being sold in October to Vicenza-based company Spezzapria.
The new ownership enabled the production of over 500,000 pandoro cakes for the Christmas period, just one month after restarting production.
The company’s new CEO, Denis Moro, told local daily Il Nordest Quotidiano that production will soon commence for Easter, adding that the company also plans to keep price levels low, in order to maintain profitability levels.
© 2018 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
