FDBusiness.com

Bonduelle, world leader in processed vegetables, has reported at 10.7% rise in turnover to Eur1.73 billion for the year ended June 30th 2011 but operating profit before taxes dropped 22.8% to Eur80.7 million. The sales growth reflected a full year contribution from the consolidation of France Champignon, Europe’s largest mushroom producer, and the positive impact of currency exchange factors. On a like-for-like basis, group turnover rose by 0.6% against a 2.2% drop in the previous year.

A fall in canned vegetable prices inEurope, poor harvests in 2010, which resulted in additional productions costs and shortages, combined with unfavourable exchange rates impacted operating profitability. Reflecting the decline in operational profitability, group net profits slumped 47.9% to Eur30.4 million.

Although profitability declined in 2010/2011, Bonduelle continued to invest in developing the business and enhancing its competitiveness. During the financial year, the French group commenced commercial operations in Brazil, introduced mechanical mushroom cutting and developed its mushroom range under the Bonduelle brand in several European countries, and opened the largest bagged salad processing plant in Europe, at San Paolo in Italy, to support its growth in the chilled vegetables market. Bonduelle also established an industrial joint venture in Spain with Ardo, Europe’s leading player in the frozen vegetable market, while inFrance it opened a fully automated high-rise cold store for storage and preparation of frozen vegetables orders.

Despite the renewed uncertainty due to the current, international economic situation, Bonduelle is forecasting recovery in respect of internal growth of 3-5% and an increase of 40% in operating profitability to Eur95-100 million in its current financial year, while increasing marketing investments by about Eur10 million.