Food Union’s business model delivers financial success in 2020

Date: 19.03.2021Source: Food Union

2020 has been a challenging year for global business, however Food Union, one of Europe’s leading ice cream and dairy production and distribution groups, ended the year with record financial results. While navigating challenging market transformations caused by the COVID-19 pandemic, Food Union Group celebrates its best annual results in 2020. Amidst the pandemic, the Group built its portfolio of beloved brands and expand its consumer base across Europe, East Asia and beyond. It became a major FMCG player in European markets, further establishing its presence in local and regional markets while quickly increasing exports to more than 30 countries.

Said Normunds Staņēvičs, head of Food Union Europe: “Successful, purposeful navigation through these challenging times resulted in strong sales performance of 294 million EUR turnover, representing 6% growth compared to 2019. Group’s EBITDA grew by almost 46% reaching 46 million EUR and profits quadrupled from 2 to 8 million EUR.”

Within the company’s annual report, Staņēvičs detailed the resiliency of the company’s unique hyper-local business model which allows it to connect with consumer trends in local markets and ignite local and regional brands with product innovation. The Group operates with direct market presence in 8 markets across Europe and holds leading market positions in the Baltics and Denmark while exporting to more than 30 countries worldwide. Food Union’s ‘glocal’ and people-centric business model helped the company to exemplify resiliency as it navigated the immense challenges brought on by changing markets, evolving consumer preferences and disrupted value chains.

Added Staņēvičs: “Our Group made calculated operational decisions and had the local competence, production capacities and markets to fuel our growth regionally and across the Group. We continued to leverage our operational capacities and brands to strengthen our consumer base in local and export markets. In the last year, we have increased exports to Hong Kong, Taiwan and Singapore, with our total exports over 2 million EUR in sales by the end of 2020.”

The Groups successful results were further solidified by investments in production capacity, automatization and digitisation that were executed in 2019, preparing the company for a more digital and agile future. In each market, the Group built even closer relations with consumers through tailored e-commerce solutions in every market.  For more visit foodunion.com

David Cox / IDM

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