Ferrero reports improved global turnover of €12.7 billion amid global expansion
An improved annual financial position has been reported by Ferrero International, parent company of the Ferrero Group, which continued to expand its global operations, with turnover for 2021 up 3.4% to 12.7 billion, writes Neill Barston.
As previously covered by Confectionery Production, the firm has followed a key growth pattern in its global operations, despite ongoing pandemic-related challenges that have impacted on the wider sector, and all spheres of industry.
The business is due to play its part in our World Confectionery Conference this September (see our recent video interview with the business here discussing the event and core issues impacting on confectionery and snacks markets).
Among the company’s key activities within the past 18 months have been the acquisition of British-based snacks brand Eat Natural, as well as expanding its presence within the US, through increasing its distribution capacity across the country.
Furthermore, Ferrero International consolidated 107 companies and 32 manufacturing plants worldwide, selling directly and via distributors in over 170 countries.
Meanwhile, as the company noted, its average workforce in 2020/2021 was 34,374 employees, increasing from 34,121 employees in 2019/2020. The headcount as of August 31, 2021 amounted to 38,767 employees, compared to 37,122 as of August 31, 2020.
As the business added, despite the uncertainties caused by the Covid-19 related restrictive measures that impacted the fiscal year 2020/2021 all around the world, the group rapidly adapted to the challenges coming from the pandemic.
This included prioritising consumer and employee health and safety, the Ferrero Group has been able to demonstrate agility and resilience to guarantee operational continuity and delivering products to its consumers.
Significantly, the company explained that it achieved crucial net sales growth of finished products, including increases in key markets including France, Germany and China and consolidation of market shares in most of the regions.
Among products performing notably strongly were Ferrero Rocher, Kinder Bueno, Kinder Joy and Kinder Chocolate, as well as launching new products including Ferrero Rocher and Raffaello ice creams.
Furthermore, for the fiscal year 2020/2021 (ending August 31 2021), the Ferrero Group acquired 100% of the issued share capital of Eat Natural, the UK based maker of high-quality cereal bars, toasted muesli and granola, operating in the fruits and nuts snacking market segment, with the aim to expand the Group overall footprint and product offerings.
The Ferrero Group also completed some key initiatives such as: increasing investment in its iconic brands, strengthening internal R&D activities and, for another consecutive year, investing in improving and expanding its factories, plants and equipment.
As part of the Group’s continued technological development strategy, it expanded its production capacity, with total capital investments amounting to €839 million – including property, plant and equipment ( €757 million), for its plants in Italy, Germany, the USA and Poland. This reflected the group’s continuous approach to improving the quality, freshness, food safety, competitiveness and reducing environmental impact of its production.