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Food Union 2021 Annual Results

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


  • Continued focus and investment in innovation with 140 novelty ice cream products developed and brought to market
  • Strategic investment to maintain and secure strong power positions in key geographies with market leadership in the Baltics and Denmark and prime positions in Norway and Romania
  • Leadership appointment of Artūrs Čirjevskis as CEO in Europe
  • Regional support of Ukraine via financial assistance and food donations. The Group has also provided jobs to Ukrainian refugees in Food Union plants in Latvia and Estonia

Overview of Results

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 the same as in 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, automatization and e-commerce.

Over 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.

Management Changes

Post yearend, in January 2022, a new CEO of Food Union Europe was appointed, with Artūrs Čirjevskis recruited internally into the role. Artūrs has an in-depth understanding of the Group, having previously held the role of Chief Financial Officer of Food Union Europe for five years, where he was instrumental in its success and enhanced operational efficiency. He has garnered previous CEO experience at one of the Food Union Latvia production plants SIA Rigas Piensaimnieks. He also held the revered position of an international economics course lecturer at Riga International School of Economics and Business Administration.

Food Union’s business development Europe, focusing on e-commerce and DSD segment, will be led by BDO Sergey Beskhmelnitskiy, former CEO of Food Union in Baltics. However, the implementation of commercial strategy in Denmark, Norway, and Romania will be supported by CCO Aivar Aus, CEO of Premia TKH, Estonian flagship ice cream producer and No.1 ice cream brand in Estonia.

Artūrs Čirjevskis, CEO of Food Union, Europe, said “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.”

Financial Highlights (EUR million):

  2021 Change YoY 2020 2019
Net revenue 291.4 290.7 276.6
Gross profit 114.6 115.5 103.6
EBITDA 42.2 46.1 31.5
Cash flow generated from operating activities 35.3 37.1 31.9
Net result 10.8 8.3 2.1

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 automatization and digitalization 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.

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