French plant-based food company Bonduelle has said that commercial activity in Ukraine has been interrupted by the conflict there but that its three vegetable processing plants are operating in Russia.
The group said it was monitoring the impact of sanctions imposed on Russia after the invasion of Ukraine, in particular those relating to the supply of raw materials and finished products. Bonduelle has been present commercially in both countries since the 1990s.
"At the moment, we are doing everything in our power to ensure the continuity of our business by providing essential food requirements and pursuing our sowing operations with our farming partners," chief executive officer Guillaume Debrosse said.
Geopolitical Situation
Bonduelle, which expects revenue growth and core profit margin to be stable this year, warned the geopolitical context resulting from the conflict would influence this scenario, adding it could not at this stage estimate the impacts.
"Regarding our operations in Russia, we continue to adapt our modus operandi in accordance with the measures implemented by the various authorities involved," Debrosse said in an earnings statement.
Revenue in Russia and in peripheral countries represents around €150 million or 5% of the group's revenue, of which less than €10 million is from Ukraine, Bonduelle said.
First-Half Performance
The group said that it saw a 'good performance' across its various business operating segments in the first half of its financial year, which was hampered by difficulties encountered across its fresh prepared food business in North America.
Revenue stood at €1.443 billion for the half-year period, a 0.1% increase on the same period last year. Operating profit was down 17.4%, however.
Revenue growth and current operating margin stability is expected for full-year 2021/22, it added.
"In an uncertain environment, depending on the sanitary context, price increase negotiations linked to the context of unprecedented inflation and to the fresh prepared food segment in North America, our objective of revenue growth and profitability stability for FY 2021-2022, once again demonstrates the group's resilience and the solidity of its business model," said Debrosse.
Read More: Bonduelle Reports Like-For-Like Increase In Revenue In FY, Although Europe Declines
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