(News Bulletin 247) – The publication of the French vegetable specialist (fresh, canned and frozen) pleasantly surprises the market, while its profitability has clearly appreciated over the period covering July to December. Bonduelle also confirms its annual objectives.

While some companies have seen their accounts shaken by price increases, Bonduelle has once again taken advantage of inflationary pressures. The French vegetable specialist (fresh, canned and frozen) saw its activity and profitability increase in the first half (July to December) of its 2022-2023 financial year, driven by price increases.

Already published last month, Bonduelle’s sales from July to December 2022 appreciated by 13.6% at current exchange rates, to reach 1.24 billion euros.

The group indicates that it has continued its policy of raising prices in order to partially offset inflation in production costs. This strategy has been applied particularly to canned and frozen products, adds Bonduelle.

This pricing policy has thus boosted the profitability of the northern group. From July to December 2022, current operating income amounted to €43.1 million, up 56.1% on a reported basis and 60.9% like-for-like.

Current operating margin follows the same path. It stands at 3.5%, an increase of 94 basis points (0.94%) compared to the first half of the previous financial year in published data and of 130 basis points, or 1.30% on a like-for-like basis. As for the consolidated net income, this amounted to 20 million euros, down 16.5% compared to the first half of 2021-2022.

“Essential” price increases

Over the half-year, Bonduelle indicates that it has adapted its industrial facilities in the United States with the aim of “improving its competitiveness on the ready-to-use fresh produce market” on the east coast of the country. The French group took this decision when an agronomic crisis affected the yield of lettuces in the Salinas region, “generating a significant shortage of products and an increase in purchase prices”.

The group will merge “in the coming months” its two sites in New Jersey: that of Florence will be “converted into a warehouse for the East Coast with the maintenance of jobs on the site and all the operators stationed in Florence will be offered a employment in Swedesboro”. This reorganization will result in a net charge of between 6 and 8 million euros for the 2022/2023 financial year, of which 1.3 million have already been recognized in the first half.

Regarding its outlook, Bonduelle will spend “significant tariff increases” to offset future inflation on agricultural materials. A strategy that paid off in the first part of the year.

So, given the performance achieved over the half-year, Bonduelle confirms its annual objectives, despite a context described as “volatile” by the company. The group expects to achieve business growth of around 8% at constant exchange rates and scope. The current operating margin is still expected to be stable compared to the previous year.

On the Paris Stock Exchange, Bonduelle’s half-yearly publication delights the market. The title of the vegetable specialist evolves at the head of the SBF 120, thanks to a jump of 8.7% to 14.44 euros, around 10:20 am Friday.