Food Union publish 2021 annual results

Date: 12.07.2022Source: Food Union

‘Dynamic momentum, continued growth, and commitment to innovation’ are the markers of success in the 10-year anniversary of one of the leading regional ice cream and dairy groups in Europe

Food Union, one of Europe’s leading ice cream and dairy producing and distributing groups, is pleased to announce its annual results for 2021. Net revenue remained consistent with 2020 – EUR 291 million with new record ice cream sales achieved in June and July. Profits rose to EUR 10.8 million, up 30%, following significant investment in new products, atomisation and e-commerce.

More than 140 novelty ice creams were introduced across six markets in 2021, with Food Union now holding a leading market position in the Baltics and Denmark, and strong Top 3 positions in Norway and Romania. According to Nielsen, the Group’s novelty products were among the best-performing newcomers in the markets, which raised the value of many of the Group’s strong brands.

The performance was supported by the Group’s continued development of dynamic routes to market through e-commerce solutions. Beyond supporting sales, it improved customers’ overall experience by ensuring quick and timely delivery, broadening the product range, and introducing an assortment of goods produced by partners. As a result, during the year the Group almost tripled revenues from the e-commerce revenue channel, with three-digit year-on-year growth recorded in most markets.

Total net cash used for investing activities reached EUR 12.3 million, with EUR 2.8 million invested in truck upgrades working towards the mission to build an effective and green fleet across the Group. A further EUR 8 million was invested into property assets and equipment.

Said Artūrs Čirjevskis, CEO of Food Union, Europe: “As we reached the end of a decade, Food Union continued to make major strides in building power brands in key markets with significant innovations across the business, from product to distribution. These results were achieved against difficult market conditions with longer COVID-19 lockdowns and rapidly rising material prices. Going forward and based on our impressive customer base in DSD segment we aim to develop in-depth client relationships and become their reliable partner in categories beyond ice cream.”

Food Union will continue to focus on deeper operational optimization and integration between the Group’s companies, especially in the Northern European markets. The ongoing investments into the automatisation and digitalisation of operations will continue to strengthen the Group’s ability to adjust to the uncertainties and developments in the world, at the same time as staying committed to our core mission – focusing on the well-being of people by delivering products that resonate with consumer needs. For more visit foodunion.com

David Cox / IDM

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