Bonduelle Introduces Strategic Transformation Plan for Growth

Bonduelle's Strategic Transformation Announcement

BONDUELLE

Head office: 'La Woestyne' - 59173 Renescure - France
Bonduelle is a French S.C.A (Partnership limited by Shares) with a capital of 57,102,699.50 euros
Registered under number: 447 250 044 (Dunkerque Commercial and Companies Register)

Bonduelle Launches Its Three-Year Transformation Initiative

During a recent conference, the Bonduelle Group unveiled its ambitious three-year transformation program titled "Transform to win" alongside its financial performance for the fiscal year 2023-2024. This initiative is designed to rejuvenate the company and re-establish its trajectory as a leading B Corp entity.

Bonduelle has concluded its fiscal year with a notable increase in annual sales and current operating income, exceeding expectations. The company is projecting stable business activities and profitability for the upcoming fiscal year 2024-2025.

Xavier Unkovic, the Chief Executive Officer of Bonduelle, expressed that transformation has always been a core aspect of their business model. The company has continuously adapted to meet challenges over more than 170 years. The committed efforts of the team combined with their healthy product offerings and positive impact ambitions are crucial to this transformation.

He noted the global economic and geopolitical uncertainties, which have affected consumer sentiment and purchasing power. Nonetheless, Bonduelle remains steadfast in its commitment to a sustainable business model and continues to innovate and expand its brands.

Driving Transformation Through Strategic Pillars

"Transform to win" is anchored on five pivotal pillars:

1. Performance

2. Brands and innovations

3. Key geographies

4. Operational and organizational efficiency

5. Positive impact

This comprehensive plan will enable Bonduelle to transition, rebound, and ultimately enhance its performance through a cohesive organization focused on shared goals and ambitious strategy.

Current Financial Overview of Bonduelle

The Supervisory Board has approved the financial statements for FY 2023-2024, confirming that Bonduelle's sales reached 2,371.8 million euros, reflecting a 2.7% growth on a like-for-like basis. After accounting for currency fluctuations, there was a slight reported decline of 1.4%.

The current operating income increased significantly by 30.5% on a like-for-like basis, with an operating margin of 3.2%, outperforming expectations.

Key Financial Figures

(In millions of euros)

• Sales: €2,371.8
• Current Operating Income: €75.3
• Net Result: -€119.8

In terms of regional activity, the Europe Zone generated substantial growth, comprising approximately 65.7% of the business operations. This area demonstrated a reported growth of 3.3% despite a challenging sales environment in the last quarter. The demand for private label products surged, indicating a strategic shift in consumer purchasing behavior.

Meanwhile, the Non-Europe Zone, accounting for 34.3% of business activity, witnessed a 2.4% growth on a like-for-like basis. The Eurasia region benefited distinctly from the growth of Bonduelle's canned brand, while North American markets showed mixed results.

Outlook for the Future

Bonduelle's leadership envisions leveraging their transformation strategy amid a competitive and uncertain market landscape. Upcoming initiatives will aim to enhance accessibility to innovative products, particularly focusing on the American market.

The ongoing transformation plan, including the planned divestiture of its packaged salad business in specific markets, reflects Bonduelle's commitment to focus on their core areas of growth—canned and frozen food segments.

Upcoming Financial Events

- Analysts and investors meeting: October 7, 2024
- Annual Shareholder Meeting: December 5, 2024

Frequently Asked Questions

What is Bonduelle's transformation program about?

Bonduelle's transformation program, "Transform to win," focuses on revitalizing the company by enhancing performance, innovation, and sustainable practices.

What were Bonduelle's financial results for FY 2023-2024?

Bonduelle reported sales of 2,371.8 million euros, with a current operating income of 75.3 million euros, despite facing challenges in certain markets.

What regions did Bonduelle see growth?

The Europe Zone experienced growth of 3.3%, while the Non-Europe Zone reported a 2.4% increase on a like-for-like basis.

What are the key pillars of the transformation plan?

The transformation plan is built on five pillars: performance, brands and innovations, key geographies, operational efficiency, and positive impact.

What is the future outlook for Bonduelle?

Bonduelle aims to stabilize operations and continue its growth trajectory while implementing its transformation initiatives.

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