Processed vegetables firm Bonduelle has said that the 'sourcing diversification of a major client' at its North America operations was the core reason for a 1.5% decline in like-for-like revenue in full-year 2018/19.
The group posted total sales of €2.78 billion for the period, which was flat on a reported basis, while Q4 sales were €694.9 million, which was up 1.7% on a reported basis and down 2% on a like-for-like basis.
Europe Performance
The group's Europe Zone, which accounts for 47% of total revenues, saw reported sales rise by 0.5% and like-for-like sales rise 0.7%, with retail sales for its Bonduelle and Cassegrain brands seeing growth across various operating segments, including canned, frozen, fresh ready-to-use and fresh ready-to-eat.
It said that it is exploring new opportunities in the plant-based food segment, by 'combining vegetables, cereals and pulses available in various forms and targeting the different consumption moments'.
Non-Europe Zone
Its Non-Europe Zone, which includes North America and Eurasia, saw revenue down 0.4% on a reported basis and 3.4% on a like-for-like basis, due to the aforementioned activity in North America.
The group said that its canned and frozen activities in North America recorded 'solid growth', while the acquisition of the Del Monte brand in Canada means that its operations there are 'performing in line with expectations'.
Looking Ahead
In terms of its outlook for the coming year, Bonduelle said that it is 'confirming its objective' to maintain current operating profitability.
It said that price increases have been obtained from retailers in several markets, except France, and this evolution of sales prices, 'plus the increase of competitive pressure both in the European Union and in North America, coupled with a very difficult crop start caused by record heat waves, drought and watering bans in some areas, will affect FY 2019-2020'.
It added that its Russian operations are set to be boosted next year, particularly in frozen, by the recent acquisition of a production facility in Belgorod, in Russia.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
