Bonduelle reports dip in margins after ‘difficult harvests’ despite stable turnover

By Louis Gore-Langton contact

- Last updated on GMT


Related tags: North america, United states

The French vegetable producer, due to make a major acquisition in the US next year, this morning reported a drop in its margins but said its profitability and activity are still in line with targets.

In its half year financial statements released this morning, Bonduelle showed a dip in its operating margin of almost half a percent. This has dropped the company’s profitability by almost €3 million in comparison with figures for the end of 2015.

In a statement, Bonduelle said this was the result of “Difficult harvests observed in summer 2016 in France, Russia and United States, recorded in part on the first half of this financial year, coupled with a downturn of the activity in Russia.”

However, the group’s turnover remained practically unchanged in Europe and grew by 6.6% on a like for like basis elsewhere. Particularly in North America, where Bonduelle’s latest acquisition lies, the company said it had experienced strong growth, most notably in Canada.

Based on the year's performance so far, Bonduelle also expect a rise in revenue of around 2 - 3% by the end of the year. 

Acquisition of Ready-Pac Foods

The financial report today comes a week after Bonduelle announced it would be acquiring the US single serve salad giant Ready-Pac Foods.

The market leader in US salads, it was reportedly purchased by Bonduelle for €389 million. The acquisition will be financed through debt.

To be renamed Bonduelle Fresh Americas, this will make the group’s fifth business unit. The expansion is aimed at bolstering its image as the world leader in health and wellness vegetable products.

Related topics: Business

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