RIGA, Latvia, March 18, 2021 /PRNewswire/ -- While navigating challenging market transformations caused by the COVID-19 pandemic, Food Union, one of Europe's leading ice cream and dairy production and distribution groups, celebrates its best annual results in 2020.
"Successful, purposeful navigation resulted in strong sales performance of 294 million EUR turnover, representing 6% growth compared to 2019. The Group's EBITDA grew by almost 46% reaching 46 million EUR and profits quadrupled from 2 to 8 million EUR," said Normunds Stanevics, CEO of Food Union Group Europe.
Laying the Foundation for Success
The Group's unique "glocal" business model, which connects it with consumer trends and ignites local and regional brands with product innovation, along with its prior investments in production capacity, automatization and digitization contributed to its success as it navigated the challenges presented by the pandemic.
Food Union invested in agile market environments with strong e-commerce potential. "We expanded and improved our door-step-delivery services in Denmark and Norway while investing in new e-commerce shops in Latvia, Lithuania, Romania and Hong Kong leading to increases in ice cream consumption and growth in new customers," added Mr. Stanevics.
HIGHLIGHT POINTS
- Achieved net revenue of EUR 293,526 thousand, representing over 6% or almost EUR 17 million growth year-on-year.
- Generated gross profit of EUR 118.4 million, representing 40.3% gross margin or notable EUR 14.8 million increase year-on-year. Moreover, reported year net result of EUR 8.3 million, representing a fourfold increase year-on-year.
- With significant share of Point-of-Sales being either fully or partially closed throughout the year overall consumption of ice cream and dairy stayed stable, allowing the Group to increase sales with its diversified distribution networks.
- The Group's key revenue component - Ice cream segment - contributed most to the annual revenue growth. Continuous efforts in extension of ice-cream seasons showed results, with over 50% of ice-cream revenue growth generated outside traditional high-season.
ABOUT FOOD UNION
Food Union is currently the leading ice cream producer in the Baltics and Denmark, and the group holds a strong market position in Norway, Romania, Russia and Belarus. A leading, innovative consumer goods company, Food Union develops local brands delivering delightful products in the premium snacking, ice-cream and dairy categories.
Food Union Group is backed by Hong Kong-based investment company Meridian Capital Limited, and one of Asia's largest private capital firms, PAG.
