Food Union 2023 Annual Results

Highlights:

– Continued focus on innovation with 50 novelty ice cream products developed for Summer 2023 accompanied by product portfolio optimisation

– Focus on sustainable, value-added growth across markets, particularly strengthening our doorstep-delivery business, entering new export markets and further developing our cooperation with locally strong partners

– Change in ownership and senior management in early 2024 under the leadership of Artūrs Čirjevskis as CEO in Europe.

Overview of Results

Food Union, one of Europe’s leading ice cream and dairy producing and distributing groups, is announcing its financial results for 2023. Net revenue in 2023 grew by 11% compared to 2022, reaching EUR 323 million. Losses were reduced by 58%, from EUR 11.5 million in 2022 to EUR 4.8 million. Financial results reflect the resilience and rapid internal transformation focused on enhancing top-line growth and cost efficiency, honed procurement strategies, streamlined operations, strengthened doorstep delivery services, sharpened product portfolios, and expanded export markets.

Artūrs Čirjevskis, CEO of Food Union in Europe, comments: “In 2023, the European food industry continued to face macro market challenges, with inflation and the war in Ukraine presenting significant obstacles in the supply chain and consumer behaviour. During this period, Food Union demonstrated the Group’s capacity not only to adapt and overcome the obstacles but to grow in line with the overall European food industry. I am proud that during these challenging times we improved market shares across all markets we operate in by focusing on pricing and procurement strategies, cost reduction efforts, and driving growth in our doorstep-delivery business area as well as exports.”

Total net cash used for investing activities reached EUR 8.7 million, with EUR 2 million invested in truck upgrades, moving towards the goal of building an effective and green fleet across the Group. A further EUR 6.7 million was invested in property, plant, and equipment.

Ownership and Management Changes

At the beginning of 2024, Group’s ownership structure was changed. Announced in January 2024 and concluded in March 2024, the world’s leading alternative investment company PAG Private Equity one of the three former investors in the Food Union Group became a majority shareholder by acquiring shares from the company’s founder and other shareholders. Consequently, the Food Union Group in Asia ceased to be part of the Group. The Group’s Executive Leadership team consists of Artūrs Čirjevskis, CEO of the Food Union Group in Europe, and Soren Lauridsen, Executive Chairman of the Food Union Group in Europe.

Outlook

With the economic landscape beginning to stabilize in 2024, Food Union stands firm for further advancement. As an innovator, producer, and distributor of ice cream and high-value dairy products, group is well-equipped to continue captivating the hearts of consumers. With more than 55 ice cream novelties planned for the 2024 summer season, alongside a comparable number of dairy product innovations, group is fully committed to deliver on the brand promises of its products, both in-store and through direct delivery.