Bonduelle booked lower full-year profits this morning (4 October) as currency exchange and price pressure offset like-for-like sales growth at the French vegetable company. 

Net profit fell 22.5% in fiscal 2015/16 dropping to EUR53.7m (US$59.98m) with one-time costs linked to restructuring weighing on Bonduelle’s bottom line. However, the company also reported lower operating profit, which slipped 7.2% to EUR103.5m.

Sales were down 0.7% to EUR1.97bn. However, on an organic basis stripping out currency exchange and other factors, sales increased 2.4%, supported by growth of 8.2% at Bonduelle’s global operations outside Europe. Within the Eurozone, organic sales were down 0.4% and the company flagged pressure on pricing in the region. 

“In an ever-chaotic climate – shaped by the lack of any upturn in consumption and price war in Europe, economic crisis in Russia and Brazil, high currency fluctuations – the Bonduelle Group reported another FY of growth on a like-for-like basis,” Bonduelle noted. “These performances, higher than the announced objectives at the beginning of the FY, underline the resilience and efficiency of the group’s strategy in terms of diversification.”

Bonduelle said it has diversified its product base – spanning canned, frozen and fresh processed – as well as expanded geographically. The company now generates one-third of its sales outside Europe. The group has also widened its brand strategy to include national brands and private label, as well as the distribution channels it targets, which now encompass retail, foodservice and industrial.