The newly formed board of directors and the senior management team are working intensively to restructure and realign the group. Hochdorf’s future can be secured if the steps announced recently are implemented quickly and consistently, alongside the debt restructuring measures that have been introduced.
The 50 EIT Food partners are working in various projects alongside start-ups and innovation leaders to develop new concepts for a more sustainable food industry. A closer look at refrigerated shelves or into confectionery departments of supermarkets shows that paper-based packaging has the potential of standing out from competing products.
The EIT Food project “inPaper”, led by Matthias Klauser, is developing paper-based trays for confectionery and refrigerated products, which meet all barrier requirements while significantly reducing the use of fossil raw materials compared to conventional packaging solutions. The concept phase has already been completed and the first consumer surveys have been carried out. Currently, the project partners are working on technically implementing the requirements of manufacturers, retailers and consumers. In parallel, Bosch Packaging Technology is working on a machine for three-dimensional paper forming.
Australia and New Zealand (ANZ) have experienced significant growth in the Food & Beverage market. The fastest growing segments are supplements, dairy and sport nutrition. In these categories, Prinova can offer straights, premixes and concepts with a sales person located in Sydney. The new operation will help the company supply ANZ markets with bespoke nutritional premixes from its China facility, with over 2,000 ingredients in categories ranging from vitamins and amino acids to essential oils and aroma chemicals supported by warehouses in ANZ.
Growth was observed in customized solutions incorporating in particular Kerry’s fermented ingredients, broad protein portfolio, probiotics, fibre systems, botanicals and natural extracts. During the period, the group completed three acquisitions at a total cost of EUR 327.2 m including Ariake U.S.A. and Southeastern Mills’ North American coatings and seasonings business (SEM).
Developing market growth was reported at 9.1 %, with Asia Pacific Middle East and Africa (APMEA) developing markets being the main driver. In June, the group officially inaugurated a state-of-the-art EUR 20 m production facility in India, marking its fourth significant investment in the country.
Revenue increased by 10.7 % to EUR 3.6 bn, reflecting volume growth of 3.3 %, neutral pricing, contribution from acquisitions of 4.7 %, and a favourable translation currency impact of 2.7 %. Foodservice exhibited a growth of 5.3 %.
At the new congress “Plant-based Solutions” in the series “Future of Confectionery”, which will take place from 29 to 30 October 2019 in Solingen/Germany, the Central College of the German Confectionery Industry ZDS has set as its goal to give confectionery producers a critical and informative evaluation of the important plant-based raw materials and their processing. Within this framework, the technological main focus of current developments, substitution concepts for animal-based ingredients and the future chances of these sweets will be presented.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 342 m and therefore was up 7.7% over the previous year’s level (H1 2018: € 317 m). Adjusted for the one-time effects related to the planned acquisition of ADF/IDF, EBITDA(N) amounted to € 351 m, exceeding the previous year’s figure by € 34 m.
The profitability of the Group remained at a high level with an EBITDA(N) margin of 20.8% (H1 2018: 20.1%). As a result of the new IFRS 16 standard, EBITDA(N) increased by € 9.8 m in the first half of 2019. The normalized net income for the period of € 153 m exceeded the previous year’s level by 7.8% (H1 2018: € 142 m).
As the newly elected Vice Chairman, Dr Klingele wants to particularly encourage an exchange on best practices between members and external experts, identify common issues and derive an action plan from this. He also wants to support the members of the association in positioning the corrugated board industry as a solution provider for environmental and climate protection.
Dr Klingele is convinced that there couldn’t be any better time for this than at present: “Some of the dramatic pictures of the plastic waste in the world’s oceans have brought about a change in awareness in politics, business and society.” When looking for solutions, the corrugated board industry is predestined to take on an important role: “Corrugated board is 100 percent recyclable, complies with the highest hygiene and environmental standards and, as a packaging material, is simply the best recyclable product”, Dr Klingele explains.
Key topics of the 2018 report are the considerable investments into new production plants and the technical modernization efforts scheduled over the next few years. At EUR 120 m, these investments are amongst the largest package of measures in the history of the group. The new high-bay warehouse, the new filter and the reconstruction of tower no. 5 are only part of the technical upgrading and modernization projects. With these investments, Uelzena is emphasizing its cooperative mission as a reliable milk customer in the regions while also increasing its efficiency for its customers.
German retail confectionery sales developed positively in the first half-year of 2019. According to the figures from the Nielsen confectionery monitor, revenues stood at € 6.959 bn indicating an increase of 2.6%, while sales volume through calendar week 26 rose by 1.3% up to 838,116 tonnes (basis: food retailers + drug stores + impulse channels + gas station shops + department stores).
The largest product group, chocolate goods, achieved an increase in revenues of 1.4% up to € 3.252 bn (sales volume + 0.8%; 308,748 t) with significant revenue growth among praline-like products (+ 8.0%), tablets up to 100 grams (+ 5.7%) and other bars (+ 34.7%). The baked goods category enjoyed above-average development with an increase in revenues of 4.0% up to € 810.6 m (sales volume + 0.9%; 143,805 t), driven by a strong increase in earnings in the segments of other baked goods without chocolate (+ 11.3%), wafers without chocolate (+ 32.4%), seasonal baked goods (+ 11.7%) and shortbread (+ 18.7%). Sugar confectionery suppliers suffered a mild loss in revenues of 1.1% down to € 1.282 bn (sales volume + 0.4%; 183,239 t). Revenues only grew in the largest segment of fruit and wine gum/marshmallow/liquorice (+ 1.1%).
Revenue development in the individual sales channels revealed notable profits in small consumer markets (+ 6.2%), drug stores (+ 4.0%) and large consumer markets (+ 3.5%), with only small supermarkets falling under the previous year’s level (- 6.8%).
Before he arrived at Multivac, Andreas Eyd worked in various management functions, including CEO, within the printing industry and the refrigeration sector. Since July 2017, he has occupied the position of Vice President of Sales & Operations for Central Europe, Africa and the Middle East as well as for Australia and New Zealand. He will continue until further notice in this position in addition to taking up his new duties.
Frank Gabriel has been at Multivac since September 2011, most recently as CEO of the company’s Spanish production company. Prior to this, he was responsible for international production projects at the packaging machine manufacturer’s Group headquarters.
Frank Gabriel’s successor in Spain, Txus Baquero, took up his new position on 1 August 2019 and, since he has been Production Manager at Multivac Spain since 2011, he is already well-rooted in this branch of the company. He is the first Spanish CEO, whom the company has appointed for its subsidiary in Spain.