Wessanen Continues to Make Good Progress
Wessanen, a leader in the European market for healthy and sustainable food, has reported a 9% increase in revenue to €570.0 million for 2016 compared to the previous year. Autonomous growth was €32.7 million, or 6.0%. The acquisitions of Piramide, Ineobio, Mrs Crimble’s and Biogran in 2016 added 4.9% and a weakening of the British pound exchange rate adversely impacted revenue by 2.2%.
EBITE rose by 18.7% to €41.2 million in 2016 and EBITE as percentage of revenue improved by 60 bps versus last year to 7.2%, despite moderately increased marketing investments.
Christophe Barnouin, chief executive of Wessanen, comments: “In 2016, we continued to make good progress on the transformation to a focused, fast growing, sustainable and profitable business. Our own brands performed ahead of a healthy market and grew 8.5%. Given that we reduced our private label and distribution business, total autonomous growth was 6.0%, in-line with our long term guidance range of 5-7%. Our operating margin went up; EBITE as percent of revenue increased 60 bps to 7.2%.”
Christophe Barnouin, chief executive of Wessanen.
He continues: “We have landed four strategically important acquisitions in 2016. These will provide us with a further strengthened platform for profitable growth across core categories and geographies for the future. The market for healthy & sustainable, especially organic food continues to reflect the trend in consumer behaviour. Our strategy execution is on track and we are playing a leading role in helping consumers across Europe to change to Healthier Food for Healthier People and Planet.”
Total reported growth in 2017 is expected to be low double digit, with continued strong growth of own brands and the effect of 2016 acquisitions being partly offset by lower private label and distribution brand sales. Wessanen expects EBITE as a percent of revenue to be above 8% for the full year.
Overall, the European market for healthy and sustainable food continues to grow significantly albeit at different rates between countries and channels. The French and Spanish markets have grown at double digit rates, while Germany was held back by more moderate growth of the health food store channel. All in all, the European Organic market grew at the upper end of our guidance range of 5-7% and is now approximately €30 billion in size.
