French plant-based food maker Bonduelle's full-year profit falls (updated)

Bonduelle SA

03/10/2022 07:45

(Adds details)
       Oct 3 (Reuters) - French plant-based food company
Bonduelle  BOND.PA  on Monday reported a drop in its full-year
operating profit, citing the COVID-19 crisis, unfavourable
weather conditions impacting crops, wage inflation, and supply
chain disruptions.
     The war between Russia and Ukraine, once known as the
breadbasket of Europe, has sent food and energy prices to record
highs, while summer drought in key agricultural regions such as
France shrunk grain harvests and cut inventories.
    In addition, the ready-to-eat fresh activities of
Bonduelle's Fresh Americas division declined over the year due
to price increases aimed at preserving margins, a less dynamic
market, and the cessation of sales of non-contributing ranges to
certain clients, which was not offset by new contract wins.
    The decline of the ready-to-use fresh food business in North
America, which is weighing on the group's performance in the
short term, "does not call into question the relevance of this
acquisition", CEO Guillaume Debrosse said.
    The group, which provides canned, frozen and fresh processed
vegetables as well as ready-to-eat dishes, reported an operating
profit of 96.6 million euros ($94.6 million), excluding IFRS
accounting effects, for the 12 months ended June 30, compared
with 100.4 million a year earlier. This corresponds to a current
operating margin of 3.3%.
    The owner of Bonduelle and Cassegrain brands expects a
revenue growth of 8% to 11% in the fiscal 2022-2023 with a
current operating margin of 2.5%, citing the volatile
environment and the partial sale of its long life activities in
North America.
    The group in August reported annual sales of 2.89 billion
euros, up 1.8% on a like-for-like basis but below its own target
of 3%.
    Bonduelle also said it would propose a dividend payment of
0.30 euros per share at its annual general meeting on Dec. 1. 
($1 = 1.0213 euros)
 (Reporting by Diana Mandiá in Gdansk; editing by Milla Nissi)
 ((diana.mandiaalvarez@thomsonreuters.com))