Contract manufacturer Refresco reported bottom-line growth in its financial year 2024, navigating a challenging macroeconomic environment marked by weakness in consumer demand and growth in the global beverage market.
The company narrowed its net loss to €204 million, from a net loss of €304 million in fiscal 2023.
Refresco reported growth in revenue and operating profit despite a decline in volume in its financial year 2024.
Full-year volume declined to 13,830 million litres from 14,246 million litres in the previous year, mainly due to a reduction in volumes produced for GNE brands (Global, National and Emerging), partially offset by volumes for retailers.
Revenue increased to around €6 billion from €5.9 billion in 2023 as a result of pricing initiatives implemented by the company to cover higher input costs both within commodities and operating expenses, partially offset by lower volumes.
'Resilient Business Model'
Hans Roelofs, chief executive officer of Refresco, stated, "2024 was another positive step on Refresco’s journey of value creation. In a demanding external landscape, we successfully expanded our portfolio and footprint, enhanced efficiencies across our supply chain, protected our margins, and implemented multiple initiatives to strengthen Refresco’s internal culture and work environment.
"Supported by a resilient business model, our people showed great resourcefulness and determination to service our strong and diversified customer base, power our forward momentum, and achieve very solid results."
Annual Highlights
Operating profit amounted to €173 million, compared to an operating loss of €72 million in 2023.
Adjusted EBITDA amounted to €756 million, up from €651 million in the previous financial year, mainly driven by the improvement of gross profit margin as well as reduced operating expenses.
Gross profit margin increased to nearly €3 billion, compared to €2.87 billion in 2023.
In April 2024, Refresco Deutschland entered into an agreement to acquire the Grüneberg facility in Brandenburg, Germany, from Berentzen-Gruppe subsidiary, Vivaris.
