DSM’s Nutrition segment delivered robust organic sales growth of 9 %, including an up to 2 % Covid-19 effect, with 11 % growth in Human Nutrition, which saw additional Covid-19 driven demand across all end markets. By the end of the quarter, Human Nutrition saw more normalized trading conditions.
Sonoco, one of the largest global diversified packaging companies, announced it has acquired Can Packaging, a privately owned designer and manufacturer of sustainable paper packaging and related manufacturing equipment, based in Habsheim/France, for total consideration of EUR 41.7 m.
Founded in 1989, Can Packaging operates two paper can manufacturing facilities in France along with a research and development centre where it designs and builds patented packaging machines and sealing equipment. The company is projected to produce sales of approximately EUR 23 m and provides sustainable paperboard packaging to a number of large consumer food brands distributed across Europe. The business has approximately 60 associates.
Howard Coker, President and CEO, said: “This strategic acquisition provides us many new innovations, including patented technology to produce a recyclable, high performance all-paper package, that can be made round, square, rectangular, oval, oblong or triangular.”
Sean Cairns, Division Vice President and General Manager of Sonoco’s European Consumer Products Division, explained: “Adding Can Packaging’s innovation centre, intellectual property and proprietary manufacturing capabilities will allow Sonoco to leverage and enhance our strong material science and engineering capabilities to develop more recyclable, mono-material paper packaging solutions that will have a wide range of food barrier properties for our customers in Europe. We also see using Can Packaging’s unique, low-cost machine technology to expand our consumer products offering into growth markets.”
Once again this year, during Fi Europe co-located with Hi Europe at the beginning of December, show organizer Informa Markets will be recognizing companies and organizations for ground-breaking novelties in the Fi Europe Innovation Awards.
The Fi Global Startup Innovation Challenge gives newcomers the opportunity to present their ideas to a broad professional audience. Entries for the Startup Innovation Challenge are open until 18 September, and, for the awards, until 25 September 2020.
A jury of industry experts, including company representatives, market analysts and trade journalists, will select the finalists for the Fi Europe Innovation Award. Those shortlisted will pitch to the eight-member jury led by Prof. Dr Colin Dennis, Chairman of the Board of Trustees of the British Nutrition Foundation (BNF).
On the new website, technology topics and future trends are coming to the fore. Visitors will be kept up to date on machines, processes and digitalization in packaging machine construction. This is also done by the new Packaging Valley Podcast, which can be listened to on the new homepage or subscribed to from there.
The fact that the previous Packaging Valley homepage already allowed you to filter specifically for the right partner for your packaging task has proven its worth. Now, the visitor can choose from 80 members when searching for the right solution provider. The filter option brings the visitor quickly to his destination.
“In the coming weeks, the career portal will be further expanded in addition to the trade fair calendar,” says Regine Rüeck (project management). The portal is aimed at students, trainees and experienced professionals. Appropriate events and workshops are to be offered. The opportunities for this are also growing due to the increasing number of cooperations.
A comprehensive job portal, which provides vacancies for 80 packaging specialists, makes the website a new job search engine. With this, Packaging Valley wants to draw attention to the great variety of career opportunities in the packaging industry. New vacancies are advertised regularly.
The IRI confectionery monitor has registered an exceptionally positive result for the first half-year of 2020 for German retail confectionery sales following a clear increase already after the first four months.
Salty snacks delivered an outstanding performance, with € 1.979 bn signifying revenue growth of 15.2% (sales volume: 239,719 t; + 11.5%). Chocolate products (without season), the largest product group, increased its sales in the first half of 2020 by 7.4% up to € 2.870 bn and its sales quantity by 6.5% up to 285,761 tonnes. Sweet baked goods and cake suppliers also profited heavily from this unprecedented exceptional situation, with revenues climbing by 10.4% up to € 1.303 bn (sales volume: 241,576 t; + 8.5%). Comparatively, the growth rates for the sugar confectionery category were lower, with revenues of € 1.025 bn (+ 2.6%) and sales volume of 190,811 tonnes (+ 2.8%). The chewing gum segment suffered sensitive losses with a revenue decline of 12.4% down to € 217.5 m (sales volume: 146.5 m pieces; - 14.8%).
The Nestlé Group achieved sales of CHF 41.152 bn in the first half of 2020. Organic growth reached 2.8%, with real internal growth (RIG) of 2.6%. Pricing contributed 0.2% and was positive in all three zones in the second quarter.
The Covid-19 crisis has led to profound changes in operating environments across markets. The global economy has entered a recession, supply chains have been tested and consumer behaviour has changed at a rapid pace. Nestlé quickly deployed effective measures to address this new reality. In the first half, the effects of Covid-19 on organic growth varied materially by geography, product category and sales channel, depending on the timing of outbreaks, scope of restrictions and consumer behaviour.
After a stronger-than-expected start to the year, organic growth moderated in the second quarter to 1.3%, reflecting the severe impact of movement restrictions on out-of-home businesses and some consumer destocking. In the first half, Nestlé saw sustained momentum in the Americas and positive sales development in Zone EMENA. Zone AOA saw a sales decrease, with growth turning positive in the second quarter. Organic growth was 4.1% in developed markets, based entirely on RIG. Growth in emerging markets was 1.1%. Nestlé achieved sales of CHF 2.973 bn in the product category confectionery, compared to CHF 3.450 bn in the first half of 2019.
The Hershey Company announced net sales and earnings for the second quarter ended June 28, 2020. Consolidated net sales were USD 1.707 bn in the second quarter of 2020 versus USD 1.767 bn in the year ago period, a decrease of 3.4%.
Reported gross margin was 46.4% in the second quarter of 2020, compared to 49.5% in the second quarter of 2019, a decrease of 310 basis points. The decline reflects a higher derivative mark-to-market commodity gain in the prior period. Adjusted gross margin was 46.4% in the second quarter of 2020, compared to 46.5% in the second quarter of 2019, a decrease of 10 basis points as price realization gains were more than offset by incremental Covid-19 manufacturing costs and unfavourable mix.
Second-quarter 2020 reported operating profit of USD 383.4 m decreased 6.5% versus the second quarter of 2019, resulting in an operating profit margin of 22.5%, a decrease of 70 basis points. Adjusted operating profit of USD 386.1 m increased 4.4% versus the second quarter of 2019. This resulted in an adjusted operating profit margin of 22.6%, an increase of 170 basis points versus the second quarter of 2019 as strong corporate and operational cost management more than offset incremental Covid-19 costs.
Mondelez International, Inc. reported its second quarter 2020 results. According to the company, net revenues decreased 2.5% to USD 5.911 bn driven by unfavourable currency and the impact of a prior-year divestiture, with underlying organic net revenue growth of 0.7% and the positive impact of acquisitions.
Gross profit decreased USD 138 m to USD 2.331 bn and margin declined 130 basis points to 39.4%. Adjusted gross profit decreased USD 9 m to USD 2.347 bn at constant currency while adjusted growth profit margin decreased 90 basis points to 39.7% primarily due to incremental Covid-19 related costs, higher raw material costs in part due to unfavourable currency movements and unfavourable volume/mix, partially offset by higher net pricing and productivity, as well as cost containment measures.
Operating income decreased USD 312 m to USD 713 m and margin was 12.1%, down 480 basis points. Adjusted operating income decreased USD 38 m to USD 942 m at constant currency, and margin decreased 80 basis points to 15.9%.
FrieslandCampina has reported a strong start of the year with first-quarter results above last year, but in the second quarter it expects major impact from the Covid-19 pandemic on operations and results.
Revenue is stable (+0.3 %) at EUR 5.6 bn. However, on a comparable basis, operating profit is down 17.2 % and profit down 37.2 % versus the first half of 2019. Milk price for member dairy farmers decreased by 3.5 % to EUR 36.59 per 100 kg of milk due to a decline in basic dairy prices. Meanwhile, milk supply increased by 1.1 % to 5,144 m kg due to favourable weather conditions.
Global recession with an anticipated slow recovery necessitates further intervention in cost structure and structural improvement of productivity, notes FrieslandCampina. The company recently strengthened its market positions in ingredients worldwide and in key consumer markets such as China, Indonesia, Nigeria, Pakistan as well as its home markets of the Netherlands and Germany. The business groups Dairy Essentials and Ingredients saw revenue increase by 5.8 % and 3.6 %, respectively.