French vegetable processor Bonduelle has reported broadly flat first-quarter sales as ongoing issues in Russia offset “strong growth” in the Americas.
The company said reported sales were down 0.3% during the first quarter, dropping to EUR462.9m in the three months to 30 September. On a constant currency basis, sales were up 0.9%.
Go deeper with GlobalData
In Bonduelle's Europe zone, sales dipped 0.4%. The company said the decline was the result of a decision to shed unprofitable private label canning contracts. This, Bonduelle continued, was offset by higher sales of its Bonduelle and Cassegrain brands, which increased 7.7% in the region. The group also flagged the performance of its fresh prepared salad business, which increased 9.2%.
Outside Europe, Bonduelle said that its performance in the Americas was supported by “strong” sales in North America. This resulted in a 3.7% rise in non-European sales on a like-for-like basis. However, including currency affect reported sales dipped 0/1% to EUR151.1m.
While Bonduelle's drive into North America is lifting the group's international performance this is somewhat offset by Russian consumption, which remained subdued. “Russian consumption levels has impacted Q1 turnover, a decline over the period due primarily to high basis of comparison and a summer period, traditionally of low activity,” Bonduelle revealed.
See Also:
LMC Midcap Partners analyst Florent Thy-Tine said that issues in Russia were likely to persist for the remainder of the year. “The Russian situation should not improve by the end year,” Thy-Tine wrote in an investor note. The analyst said Bonduells is unlikely to be able to offset the devaluation of the rouble – down by around 18% on the year – through pricing given the consumption outlook in the market.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLooking to the full-year, Bonduelle confirmed its aim to deliver “moderate growth of its turnover and current operating profitability on a like for like basis”.
