(AOF) – Bonduelle announces that the growth of its turnover and its current operating margin should be below the communicated objectives which were respectively + 3% and + 3.6% at constant scope and exchange rates on the whole exercise. These downward revisions can be attributed to several parameters. These include in particular an unprecedented wave of inflation affecting all cost components and worsening in the 4th quarter, as well as a recovery that has begun but is more difficult than expected in its cost activities in North America.
The difficulties encountered by the Bonduelle Fresh Americas business unit are leading the group to review its medium-term profitability outlook, which could lead to an impairment of tangible and/or intangible assets and deferred tax assets for this activity.
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Development of the Chinese dairy industry
The Chinese government encourages the consumption of dairy products to improve the nutrition and immune defenses of the population, while seeking to reduce the country’s dependence on imports. Wishing to turn the page on the melamine infant milk scandal, which affected 300,000 babies in 2008, milk production is picking up again in the country, after ten years of stagnation. The major industrial groups (Mengniu, Yili, Youran or Modern Dairy) do not export and concentrate on the domestic market, which is growing by 4 to 5% per year. They develop very large farms and rely heavily on innovation, investing four times more than all their competitors in the world.