Granarolo meets 2020 financial targets

By Jim Cornall

- Last updated on GMT

The board of directors has proposed the distribution of a dividend of €12.5m ($14.9m).  Pic: Granarolo
The board of directors has proposed the distribution of a dividend of €12.5m ($14.9m). Pic: Granarolo

Related tags Granarolo S.p.A. Milk pandemic

Italian dairy company Granarolo S.p.A. said despite the challenging and complex nature of 2020, the company met its profitability targets.

Consolidated revenue stood at €1.28bn ($1.43bn), a decrease of 3% from the previous year. The change in revenue on a like-for-like basis (adjusted for exchange rates) of -3.1% was due primarily to the effect of reduced sales in the normal trade and foodservice channels, both within Italy and in the other countries where the group has operations.

As a result of the pandemic the company said a significant reduction of volumes and earnings was recorded in the normal trade and foodservice channels, which was not fully offset by the increase recorded in the large-scale retail channel.

The social changes imposed by the “new normal” led to reduced consumption outside the home – the channels lost 40.7%, the Granarolo Group 25-30% on average, with lows of -80% from March to May – in favor of home consumption through a shopping mix that first and foremost favoured commodity products with longer shelf lives (ESL milk and long-life UHT milk) and ingredients (eggs, cheese, soft cheese etc.).

The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at €78.5m ($93.4m), or 6.1% of revenue, in line with company forecasts and an improvement of 8% on 2019.

Group sales have traditionally been concentrated in Italy (66.8% of revenue); the percentage of sales derived from Europe saw a 1% increase to 28.2%, while sales in markets outside Europe fell by 10.9% to 4.9%.

Earnings before interest and taxes (EBIT) stood at €28m ($33.3m), while net profit for the financial year was €15.8m ($18.8m).

The board of directors proposed the distribution of a dividend of €12.5m ($14.9m).

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