Bonduelle warning sent shares tumbling

Bonduelle warning sent shares tumbling

Shares in French processed vegetable group Bonduelle tumbled today (5 October) after the company forecast falling profits for its coming fiscal year.

Bonduelle's stock was hit following the company's admission that it expected a "significant but non-recurrent" fall in operating profit in its 2010/2011 financial year. The group also forecast a "limited" increase in turnover.

The warning sent Bonduelle's shares sliding and they were down 7.2% at EUR63.52 at 12:54 CEST this afternoon.

Earlier, the company had reported a doubling in its net profit for the 2009/2010 fiscal year from EUR26.6m (US$36.6m) to EUR58.3m. Full-year operating profit was up 2.5% at EUR101.8m and turnover rose 2.3% to EUR1.56bn.

Bonduelle said its 2009/10 results had benefited from the integration of recent acquisitions including Belgian canning company La Corbeille and Canadian groups Family Tradition Food and Omstead Food.

Sales were also boosted by Bonduelle gaining market share across its major markets through promotions and new products.

Operating profit was helped by better profits from chilled vegetables in Europe. Net profit jumped as the company was lapping a year when its bottom line was affected by "the fair-value evaluation of financial instruments".

Click here for Bonduelle's full-year earnings statement.