Prepared vegetables producer Bonduelle Group has posted a 2.0% decrease in like-for-like sales in the third quarter of its financial year, to €675.6 million.
This was up 0.4% on a reported basis, the group said.
The integration of Del Monte's fruit and vegetable business in Canada last year (which had a positive 1.2% increase on reported sales), and positive currency effects helped mitigate a challenging quarter for the business, not helped by the later falling of Easter.
Over the first nine months of the year, sales totalled €2.08 billion, which was down 1.3% on a like-for-like basis, and 0.5% on a reported basis, the company said.
Divisional Performance
Its Europe division saw a 1.3% decline on a like-for-like basis in the third quarter, and a 1.5% decline on a reported basis, which is 'largely explained by the Easter shift', the company noted.
'Indeed during the Easter holidays, consumers traditionally prefer short-lasting products (bagged salads and catered salads) with higher added value,' it said.
Over the first nine months of the year, Bonduelle's Europe division posted cumulative overall growth of 0.6% on a like-for-like basis, and 0.5% on a reported basis. Europe accounts for 45.9% of the group's turnover.
Sales outside Europe were down 3% on a like-for-like basis and 1.3% on a reported basis, with the business seeing a boost in its frozen operations in North America in the third quarter, while sales growth in Russia also 'remains strong', largely lifted by canned sales.
Bonduelle has issued a private placement in the USPP market of €140 million, with a maturity of ten years.
'Bonduelle, present on the USPP market since 2000, has been able to issue this private placement under particularly competitive conditions with a pool of historical investors having renewed its trust in the group,' the group said.
Outlook
For the full year, Bonduelle said that it is seeking to achieve 'stability', as well as maintain operating profitability at the same rates since last year, at constant exchange rates.
The business' 2018/19 financial year ends on June 30.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
