Ferrero reveals strong annual results, in spite of market disruption

The Ferrero Group has confirmed strong financial momentum into 2024, as it records turnover of €17 billion, up by 20.7% for the period 2022/2023, according to its latest trading statement, reports Neill Barston.

This was against a previous figure of €14 billion, with the company stating it had achieved ‘robust growth’ despite a number of geopolitical factors and wider market disruptions in terms of ingredient price rises and supply chain challenges.

Its latest figures, which cover the period to 31 August 203, were welcomed by the company’s Executive Chairman Giovanni Ferrero and CEO Lapo Civiletti.

Notably, the company’s manufacturing plants worldwide grew to 37 from 32 the previous year, while the Group’s global workforce in 2023 amounted to 47,212 employees, up from 41,441 as of last August.

As previously reported, the company, which is due to return to our 2024 edition of the World Confectionery Conference, has celebrated gaining a product of the year award in the US for its Kinder chocolate brand, which has further bolstered its portfolio.

“We are pleased to report a period of strong growth despite the economic and geopolitical challenges, with continued inflationary pressures remaining a factor across the globe. In addition to revenue growth, the global workforce has also grown by over 5,000 people, which is a testament of the long- term vision of our business strategy,” said Daniel Martinez Carretero, Chief Financial Officer at Ferrero Group.

At the end of January 2023, the Group completed the acquisition of Wells Enterprises Inc., its operations, and its strong portfolio of iconic brands, which include Blue Bunny, Blue Ribbon Classics, Bomb Pop and Halo Top. The acquisition is part of the Ferrero Group’s strategic growth ambition to expand its business in North America and in the ice cream category. The deal also included four US manufacturing facilities, located in the states of Iowa, Nevada, and New York.

At the end of March 2023, the Group also finalised the acquisition of Fresystem Group, an Italian family-owned business that produces frozen bakery products. The acquisition is part of Ferrero’s strategic growth plans and follows the launch of Nutella Muffins, which have been produced by Fresystem since 2021.

Innovation remains at the core of our DNA to support the growth of Ferrero’s most iconic brands, expanding their presence into new categories of the Sweet Packaged Food arena, thus meeting new consumer needs. This was exemplified in the 22/23 fiscal year by the introduction of new Kinder, Rocher, and Raffaello references within the Ice Cream segment across Europe, and the successful roll out of Nutella Biscuits and Nutella B-ready in the United States.

The Group has expanded its production capacity to meet increasing demand for Ferrero’s products. This financial period saw total capital investments of EUR 811 million – the main investments were property, plant and equipment in Italy, the United States, Germany, and Spain.

With the Group’s long-term approach to growth under the leadership of Executive Chairman Giovanni Ferrero, comes an always-on attention to sustainability. The Group sustainability strategy is focused on four key pillars: protecting the environment, sustainably sourcing high-quality ingredients, promoting responsible consumption, and empowering people.

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