Bonduelle Frozen Vegetables Sales Fare Well in Q1
Bonduelle's frozen operating segment achieved positive growth in the first quarter of FY 2015-16 (July 1-September 30), posting a 10.4% gain at current exchange rates. Turnover generated amounted to EUR 136.9 million, compared to EUR 123.9 million during the same period a year before. The gain was attributed to "retail sales dynamism" of the proprietary Bonduelle brand and growth in the foodservice sector.
Total turnover for the Villeneuve d’Ascq, France-headquartered Bonduelle Group, which produces and markets a wide range of value-added vegetable products, was EUR 462.9 million, down -0.3%. While sales denominated in US and Canadian dollars had a positive impact on the bottom line, the declining value of the Russian rouble weighed negatively.
Prior to Q1's results, Bonduelle had racked up four consecutive quarters of growth, as previously reported by FrozenFoodsBiz.com. The increase during the last quarter was + 2.2% on a like-for-like basis, and +3.8% for all operating segments (canned, frozen and fresh processed) combined during the fiscal year. Sales in the frozen sector posted a 6.5% gain at EUR 561.9 million, while the canned vegetable turnover dipped a marginal -0.1% to EUR 1,023.6 million. The fresh processed segment advanced +7.6% to EUR 396.3 million.
Frozen sales during the most recent quarter accounted for almost 30% of all revenues. While canned product sales ranked first at approximately 47%, turnover slipped 9.8% to EUR 217 million. In the fresh product segment sales rose 9.2% to EUR 109.1 million.
During QI approximately two-thirds of Bonduelle's business was rung up in the Euro Zone, where turnover of EUR 311.8 million dipped by a slight -0.4%. Growth outside of Europe was reported at 3.7% on a like-for-like basis, and -0.1% when expressed at current exchange rates.
The compamy was especially pleased with the +9.2% gain in the fresh processed operating segment (bagged salads, prepared salads and snack items). Historically a challenger in this business, the Bonduelle brand is now ranked No. 1 among bagged ready-to-eat salads in France, and is gaining ground among competitors in Germany and Italy.
While a sharp decrease was registered in private label canned segment turnover due to termination of unprofitable contracts, Bonduelle and Cassegrain branded product sales rose 7.7% during the quarter.