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