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Ferrero: sweet rise in turnover despite difficult year

February 15, 2024 at 11:55 AM , Der AUDITOR
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LUXEMBOURG. By issuing approval on 14 February chocolate and confectionary giant Ferrero wrapped up the 2022/2023 financial year particularly sweet. Turnover increased by 21% and the global workforce rose by 14%. While new Nutella products were rolled out in the USA, consumers in Europe had a taste for Ferrero-themed ice cream.

Special Valentine’s Day approval

Ferrero International S.A, the holding company of the Ferrero Group, approved the Consolidated Financial Statements for the 2022/2023 financial year on Valentine’s Day 2024. The Group closed the financial year, which ended on 31 August 2023, with a consolidated turnover of EUR 17 billion (USD 18 billion) marking a 20.7% increase on the EUR 14 billion (USD 15 billion) generated in 2021/2022. Drivers were organic growth and acquisitions. Emphasis is that the continuing growth strategy promoted by Executive Chairman Giovanni Ferrero and executed by CEO Lapo Civiletti has turned out to be highly successful.

The Group further highlights that the resilience of its people, brands and business model enabled growth across categories and regions despite the 2022/2023 financial year being confronted a challenging economic and geopolitical landscape. Ferrero’s global manufacturing plants rose from 32 in 2021/2022 to 37 in 2022/2023 and the Group’s workforce climbed to 47,212 employees as of 31 August 2023, which is 14% up on the 41,441 noted one year earlier. According to Chief Financial Officer at the Ferrero Group Daniel Martinez Carretero:

We are pleased to report a period of strong growth despite the economic and geopolitical challenges, with continued inflationary pressures remaining a factor across the globe. In addition to revenue growth, the global workforce has also grown by over 5,000 people, which is a testament of the long-term vision of our business strategy.

Investments in the USA and Europe

In addition, the Group’s ambition is to expand in North America. To this end the acquisition of ice cream and frozen treat manufacturer Wells Enterprises Inc., which holds strong iconic brands such as Blue Bunny, Blue Ribbon Classics, Bomb Pop and Halo Top, was completed in January 2023. The deal also comprised four US manufacturing facilities, located in the states of Iowa, Nevada and New York.

Moreover, the Group finalised the acquisition of Fresystem Group, an Italian producer of frozen bakery products in March 2023 as part it its strategic growth plan following the launch of Nutella Muffins, which have been produced by Fresystem since 2021.

Ferrero also expanded its own most iconic brands into new categories of the Sweet Packaged Food arena to meet new consumer needs. Not only did the market giant introduce new Kinder, Rocher and Raffaello types of ice cream across Europe but also rolled out Nutella biscuits and Nutella B-ready in the United States.

Increasing demand further prompted the Group to expand its production capacity. The financial period saw total capital investments of EUR 811 million (USD 871 million), mainly in property, plant and equipment in Italy, the United Sates, Germany and Spain.

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