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July 12, 2022

Bonduelle issues warning on FY revenue, margins

It also blamed the performance of its North American unit, part of which is up for sale, for the move.

By Andy Coyne

Bonduelle, the France-based vegetable products supplier, has adjusted downwards its revenue and margins expectations for its current financial year.

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It has blamed inflationary pressure and the performance of its North American unit, part of which is up for sale, for the move.

Bonduelle has not provided new figures but said growth in revenues and current operating margin should be below the previously communicated guidance of, respectively, +3% and 3.6% on a like-for-like basis for the full year. The guidance was provided when the firm released its third-quarter results on 2 May.

In a short statement explaining the move, Bonduelle blamed “an unprecedented wave of inflation affecting all cost components, which became stronger over the period” and “the recovery of its fresh business in North America [which] has begun but is more difficult than expected”.

Bonduelle said the “difficulties encountered by the Bonduelle Fresh Americas business unit [have] lead the group to review its medium-term profitability prospects”.

In May, the company revealed it had entered into exclusive negotiations with two Canadian institutional investors for the partial sale of its Bonduelle Americas Long Life (BALL) business.

Bonduelle negotiated with Montreal-based Fonds de solidarité FTQ and Quebec’s Caisse de dépôt et placement du Québec (CDPQ) about a deal to sell 65% of the business for CAD850m (US$660.5m at the time).

BALL manufactures canned and frozen vegetables in the US, Canada and Brazil for the retail and foodservice sectors. The business markets products under brands such as Arctic Gardens and Del Monte. It also supplies private-label.

On 30 June, Bonduelle announced it had obtained approval from the US and Canadian regulatory authorities, allowing it to finalise the deal.

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Free Whitepaper
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What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
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  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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