Food Union Group posts results upturn with key ice-cream and bakery ranges
Latvian-headquartered Food Union Group, specialising in ice cream, pastry and dairy ranges has confirmed its annual performance figures, delivering €277-million in net revenue and a gross profit of €104-million for 2019.
As the business explained to Confectionery Production, it has committed capital investments of €18.8-million that will form the foundation for its long-term development plans as one of the sector’s leading players in the Baltic region.
In addition to focusing its activities in Northern and South Eastern Europe, the company is renowned as a Latvian national dairy champion. The group has built its local brands throughout a wide range of product categories by combining in-depth knowledge of consumer requirements and a focus on industry innovation.
Normunds Staņēvičs (below), CEO of Food Union, Europe, welcomed the company’s latest performance, as it continues to seek expansion of the its portfolio.
“We actively invested in long-term growth for our leading market brands to meet growing demand. We focused on enhancing production capabilities and poured energy into modern technologies to improve production capacity and ensure the highest quality product. This will give us an ongoing competitive edge as we continue to push the boundaries of innovation and create new products that delight consumers.
“In 2019, unpredictable and unfavourable weather conditions impacted sales, however, the year was also marked by record investments in our production facilities, equipment, machinery and fixtures, as well as a car fleet. This year’s total CAPEX of €18.8-million is the highest investment in the last five years and double the average investment of the past two years. I am infinitely grateful to our Food Union family of over 3,100 people, and I hope the results of 2019 will inspire new achievements and success stories in 2020.”
The Group’s 2019 net revenue relied on two key products: ice cream products at nearly 60% of the total revenues and dairy at almost 30%. Other products, such as frozen food and pastry, formed about 10% of the total revenue.
Even though ice cream sales were impacted by cold and wet conditions in the summer, additional food products such as, dairy, pastry, convenience and frozen foods achieved very good results. The Group also put considerable focus on modernising trade across all its markets.
It successfully entered new retail chains, as well as achieved enhanced listings on national and regional levels, leading to €163-million in ice-cream generated net revenues in 2019, which is only a 1.8% decrease from 2018. The dairy segment was stable with close to €81.8-million net revenue. Frozen food dropped by 8.3% (€22 million net revenue), while pastry grew by 11.3%, posting net revenue of more than €5.8-million.