Ferrero reports improved €14 billion annual turnover, with global confectionery manufacturing expansion
Ferrero
Ferrero International has revealed its annual statement for 2022, delivering turnover put at €14 billion across the group, up 10.4% over the previous year, as it continues to expand its global confectionery interests, reports Neill Barston.
The business has seen notable investment within its chocolate and sweets businesses recently, including a multi-million US Kinder Bueno facilities in Illinois, as well as delivering new regional headquarters for the company in Chicago and increasing its overall workforce around the world.
Led by Giovanni Ferrero as Executive Chairman and CEO Lapo Civiletti is the CEO, the business now has a base of 109 companies and 32 manufacturing plants globally, operating in 170 countries. It has increased its employee numbers to 41,441 last August, from 38,767 in 2021.
Notably, the company, which played a key role in our World Confectionery Conference for 2022, and will return for our next event later this year, conceded that the 2021/2022 financial year was impacted by a “challenging economic and geopolitical environment,” but noted that it has continued on a growth track despite market tests, which include supply chain uncertainty in the wake of the conflict in Ukraine, as well as wider inflation issues. The company stated its improved performance, was down to the resilience of its people, brands and business model.
Significantly, its core brands of Nutella, Ferrero Rocher, Kinder Bueno and Kinder Joy reportedly achieved net sales growth, which the company noted had been driven by the USA and Italy, and wider international progress.
In terms of broader developments, at the end of June 2022, it finalised the acquisition of Fulfil Nutrition, a high-quality vitamin and protein bar company as part of its better-for-you strategy, responding to consumer demand. The company has direct sales in the UK and a distribution network in Ireland as well as other European and Asia Pacific markets.
Furthermore, the company highlighted its renewed focus on innovation through its existing brands, as well as applying resources to its internal research and development. Significantly, it has expanded production capabilities, with capital investments amounting to €830 million – the main investments being property, plant and equipment (733 million Euro), for its plants in Italy, the USA, Germany and Poland. It concluded that there remained a strong emphasis on improving quality, freshness and food safety relating to its ranges, as well as placing a high degree of importance on sustainable production methods.