Turnover for the Rheine, Germany-headquartered Apetito Group grew again in 2015. Revenues increased by 8.5 percent to EUR 800 million, with both catering and retail divisions contributing to the positive result, the company announced at its annual press conference in Düsseldorf. Net profit after tax increased slightly to EUR 42 million.
“We are satisfied with this result, which exceeded our expectations,” said Guido Hildebrandt, chief executive officer of Apetito AG, whose core business is providing frozen food ready meals to schools, canteens, hospitals, local government councils and other institutional clients.
Andreas Oellerich (left), managing director of Apetito Catering, and Guido Hildebrandt, chief executive officer of Apetito AG, discuss the company’s results during a press conference in Düsseldorf .From continental Europe to the United Kingdom and Canada, the Apetito Group is represented in seven countries. As part of a strategic realignment, French subsidiary Apetito SA was sold in the first quarter 2016. However, the company continues to be active in France with a newly incorporated Costa SAS operation.
Offering extensive menu choices ranging from vegan cuisine and seafood to North African dishes and special diet meals for senior citizens, the company’s philosophy is to serve people in different life situations with reasonably-priced food that is both tasty and nutritious.
In the community and individual meals (system business) sector, Apetito AG performed very well and was able to expand its market-leading position as a supplier of catering solutions in Germany. Contributing to strong growth in this area was business at day care centers and schools, as well as the sharp rise of deliveries to providers of meals to refugee dormitories.
Beyond the German market, Apetito Ltd. in the United Kingdom achieved moderate growth and strengthened its national leadership in the elderly nutrition segment. In Canada, franchise expansion progressed as planned. In the Netherlands, receipts for Apetito BV were slightly higher than the prior year. Revenues for the fledgling Apetito Austria operation, focusing mainly on the care market, topped expectations. Also, the joint venture with the Spanish catering company Arcasa saw positive sales development at a low level.
In the retail sector, Costa GmbH & Co. KG seafood product sales rose again, with exports experiencing double-digit percentage gains. The brand ranks as the market leader for frozen seafood and fish fillet products in Germany.
The Apetito Convenience AG & Co. KG division scored a turnaround in the reporting period. Despite ongoing stiff competition in the private label business, sales grew. In the Netherlands, Bonfait BV saw turnover rise in the retail chilled dish sector.
Stable Labor Force
The company’s staff of 3,986 employees was just three persons fewer than the 3,989 workers on the payroll in 2014. Of the total, 2,040 worked in Germany and 1,946 were employed in other countries.
“A happy workforce is a very important part of our success,” said CEO Hildebrandt, who drew attention to the company’s British subsidiary having recently been accredited as a “Living Wage employer.” As such, the Towbridge, England-based supplier of frozen meal solutions to hospitals, care homes and local authorities pays its employees at least £8.25 per hour. That’s significantly higher than the mandatory National Living Wage of £7.20 per hour, which came into force across the Britain this April.
Among Apetito’s UK team, 575 persons have benefited from pay increases as part of its “Fairness Agenda,” which includes other improvements to pensions and maternity/paternity compensation. The company also has a profit-sharing program that benefits all staff.
Record Investment
Investments within the Apetito Group last year amounted to EUR 31 million, up from EUR 29 million in 2014. They consisted primarily of expansion and replacement projects at the flagship factory in Rheine and at the Trowbridge facility in England.
“Our investments are at record levels,” said Hildebrandt. “In Rheine, the EUR 16 million spent in construction of a new coldstore will optimize the central logistics processes and better accommodate expected growth.”
Meanwhile, the company spent EUR 4.1 million last year in ongoing support of research and development.
Expect Further Growth
Looking to the future, the ceo foresees significant growth in the coming years.
“Our main focus lies in the development of catering solutions for senior citizens and children,” he commeted. “Internationally, the smaller Apetito companies in Austria, Spain and Canada will endeavor to become leading suppliers in those countries. In the retail business, the aim is to improve leadership of the Costa brand in the fish and seafood sector.”
Apetito Catering Results
Apetito Catering BV & Co. KG confirmed its market position in 2015, as sales advanced by 0.9 percent to EUR 156 million. Revenue, including input from jointly operated customer service companies, was consolidated at EUR 182 million.
The catering operation, including the service units, employed 4,481 people last year – down from 4,859 in 2014 – at 645 customer sites. Much of the staff has been working locally in homes and institutions for customers.
In the Business & Industries (B & I) segment, Apetito Catering strengthened its position again.
“Active guest marketing and related actions have a high priority,” said Andreas Oellerich, managing director of the catering division. “German-style gastronomy featuring regional menus, traditional preparation methods and culinary specialties are at the center of our B & I effort.”
Above-average growth was achieved in the challenging and dynamic school and day care center markets. In the clinics segment, however, catering sales declined due largely to the lingering consolidation effect of the previous year. In contrast, considerable revenue growth was realized in the senior citizen market, which still “has great potential for further expansion,” according to Oellerich.
