In the first six months of 2022, the Vandemoortele Group saw a significant year-on-year improvement in its financial performance. After the COVID-19 restrictions were lifted, the demand for our products quickly grew again, and this despite geopolitical instability. To protect our profitability, we passed on price increases to our customers and took measures to reduce our energy consumption. By further improving the nutrition profile of our products, working on circular packaging and taking care of our associates, we kept sustainability at the heart of our business.
Mid-year report 2022 (PDF)
Mid-year report 2022: key financials (PDF)
Financial results
"In spite of complex global developments, we performed better than in the first half of 2021. Group revenue increased by 34% to € 791 million, while the adjusted EBITDA grew by 24% year-on-year to € 66 million. This resulted in an adjusted EBIT of € 35 million, an increase of 68% compared to the first six months of 2021", says CEO Yvon Guérin. "Our better performance was due to a strong demand for our products, in conjunction with our efforts to counter the impact of rising energy and raw materials prices."
"Demand for our products in both business lines - Bakery Products (BP) and Margarines, Culinary Oils and Fats (MCOF) - has grown compared to the same period last year, and this despite the economic headwinds linked to geopolitical conflicts and instability. With regard to volumes and profit, we are almost back at the normal level of 2019, before the COVID-19 pandemic. All our factories are currently operating at full capacity, and the main challenge is being able to increase the output enough to satisfy demand."
Sustainable performance
In the first half of 2022, the Vandemoortele Group took steps to further improve the nutrition profile of its products. "Among other things, we reduced the salt and sugar levels in our bakery products and pastry, and we achieved better Nutri-Scores for various MCOF products. We even launched the first spread with a Nutri-Score A on the Belgian market", says Marc Croonen, Chief Human Resources, Sustainability and Communication. "Our targets concerning Clean Label products are on track, and we have further improved food safety: 23 of our 24 sites are now GFSI-certified."
"During the first six months of the year, we already achieved some of our 2022 targets for diversity and inclusion. We also reached our 2022 emission reduction targets sooner than planned, due to operational improvements and an acceleration of various energy saving projects. Regarding safety, we saw a slight increase in lost workday cases. This was probably caused by higher stress levels and the presence of more temporary staff after the steep ramp-up in our production volumes."
Outlook July - December 2022
The global inflation will continue to present difficulties, and we expect the rising prices for key raw materials, energy and other components to have a further impact on both our business lines.
Jean Vandemoortele, chairman of the Board of Directors: "A longer period of geopolitical instability could potentially impact our full year financial results. Nevertheless, with our planned price rises and our continued investments to support growth, we expect to be able to counter the negative impact on our results, at least to a certain extent."
