French vegetable processor Bonduelle has posted a sharp rise in half-year profits, which were helped by lower debt financing costs and improved margins.
The group revealed today (25 February) first-half net profit jumped from EUR6m (US$8.1m) last year to EUR25.2m this year.
Go deeper with GlobalData
The cost of Bonduelle’s debt burden plummeted from EUR38.5m last year to EUR12.1m this year as the company reduced its debt levels and benefited from lower interest rates.
Operating profit also improved during the six month period to the end of December, rising 10.3% to EUR52.4m. Total operating margin rose by 58 basis points to 6.9% of turnover, while in Europe margins improved 88 bps to 4.2% of sales.
The company was also able to report a 3.5% increase in sales during the period, which were boosted by acquisitions including La Corbeille, Family Tradition and Omstead Food.
In its results release, Bonduelle also announed that it has finalised its proposed acquisition of the France Champignon Group with Butler Capital Partners. The deal is still pending competition approval.
The group said that it anticipates further market share gains in the second half and an increase in turnover of 3.7%.
