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(BFM Bourse) – The vegetable specialist saw its annual accounts fall into the red, penalized by non-recurring items. Bonduelle, however, improved its operational profitability over the period, and announced a new three-year strategic plan.
Bonduelle delivered its annual results on Friday evening, once again marked by the difficulties of the northern group with its activities in North America, where household consumption is under pressure.
The company was forced to take a significant depreciation of 131 million euros for its salad business in the area for its staggered 2023-2024 financial year. This had the consequence of pushing the accounts into the red, to the tune of 120 million euros at the end of June 2024 compared to a net profit of 14 million euros in 2022-2023.
These significant exceptional elements “spoil” Bonduelle’s good results, deplores Florent Thy-tine, head of equity research at TP ICAP Midcap.
Because the publication of the vegetable specialist “above expectations” from TP ICAP Midcap also shows reasons for satisfaction.
Between July 2023 and the end of June 2024, the group reported a clear improvement in its profitability despite sales below expectations – already published last August – with a contraction of 1.4% in published data in its turnover. business over the period.
For its 2023-2024 financial year, current operating income stood at 75.3 million euros, an increase of 14.3%, based on published data, and 30.5% on a comparable basis, thanks to “good control of overheads and proactive programs to improve industrial efficiency”, specifies Florent Thy-tine.
The current operating margin follows the same path. It stands at 3.2%, an increase of 44 basis points (0.44 percentage points) compared to the previous year in published data and of 74 basis points, or 0.74 percentage points in comparable data. .
A year of transition
After these results which are rather “reassuring in nature”, according to TP ICAP Midcap, Bonduelle is aiming for stability in its turnover and current operating income for the current financial year, both on a comparable basis.
The group intends to accentuate its policy of accessible innovations through its brands, supported by a strengthening of its marketing investments, particularly in the American market. These initiatives are motivated by a “consumption climate under pressure and consumer concern regarding their purchasing power”.
At the same time, Bonduelle adds that it will continue its transformation program initiated in 2023-2024. It includes in particular the proposed sale of bagged salad activities in France and Germany.
The group also unveiled its “Transform to win” program this Monday morning, which is structured around five strategic pillars: performance, brands and innovations, key geographies, efficiency of operations and organizations and positive impact.
“This plan, rolled out over three years, will create the conditions for a transition, then a rebound and finally an acceleration of the company’s performance around an organization aligned on common objectives and a planning ambitious strategy”, adds Bonduelle.
Florent Thy-tine believes that it is now time to be more optimistic about Bonduelle, whose stock has, according to him, “probably reached a low point”. The analyst thus abandoned his “keep” opinion this Monday morning, switching to purchase on the file, with a price target maintained at 8.6 euros.
“If certain risks are still relevant (Russia, weather risk, recovery in the United States), the market now seems to have integrated them well and prudence on the objectives should make it possible to limit the risk of disappointment in the short term,” concludes the specialist.
On the Paris Stock Exchange, Bonduelle’s annual publication is received lukewarmly by the market. The title of the vegetable specialist lost another 1.5% around 1:50 p.m., after dropping 5% at the lowest point of the session, shortly after 9:10 a.m.
Sabrina Sadgui – ©2024 BFM Bourse
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