Double-digit growth for La Doria in the first half of 2020
Results for the first six months have improved significantly compared to the same period of 2019 due to higher sales volumes following the Covid-19 pandemic.
In the first six months of the year, La Doria sales were up by more than 20% to Euro 441.8 million. This was the result of the demand peak on both Italian and overseas markets. EBITDA increased by over 45% to Euro 34.2 million.
After registering excellent results in the first quarter, the group returned even stronger results in the second one: compared to the second half of 2019, turnover and EBITDA grew respectively by 31% and 55%.
The best performance was registered by the “sauces” line, increased by 29.8%. There were excellent performances also in the other production lines. Overall, the group’s turnover was generated by the “pulses and vegetables line” for 27%, “tomato-based products” for 21%, “sauces” for 14% and “fruit” for 8%. “Other lines” (trading) for 30%.
Exports accounted for 83.4% of sales increasing by 25.7%, with the domestic market accounting for 16.6% and an 18.8% increase in revenues.
Overall, the significant increase in consolidated sales in the first half of 2020 was driven by a strong volume growth. The improvement of margins is, on the other hand, the result of increased production volumes and improved industrial efficiency with the gradual full rollout of the four-year investment plan launched in 2018, which earmarks investment totalling Euro 138 million.
In line with the Group’s investment plan, the resources were mainly allocated in order to boost the production capacity in the “ready-made sauces” area.
As part of the group’s plan, significant investments, implemented by the subsidiary LDH, continued in the United Kingdom, where the group is building a major highly automated logistics platform, for the stocking and movements of goods to be distributed on the English market.
Commenting on the results, President Antonio Ferraioli declared: “The results achieved in the first half of the year are the fruit of an exceptional increase in volumes sold, of increased industrial efficiency achieved in part thanks to the realization of the investments made in recent years and the extraordinary commitment and sense of responsibility of all our staff”.
Although the context is still plagued by uncertainty and its developments and related effects are not foreseeable, revenues are expected to increase in 2020 with significantly improved margins compared to 2019, we can read in a note.
Revenues in 2019 totalled Euro 717.6 million, of which approximately 95% generated by the private label segment (retail chain brands), with customers such as, among others, Carrefour, Selex and Conad in Italy and Tesco, Sainsbury, Morrisons and Waitrose in Great Britain.