Since the start of the Covid-19 crisis we have taken strict measures across our operations whilst keeping our factories operational. Up to May 14th 2020 we have 5 confirmed cases of infection (not necessarily related to work environment) amongst our total workforce (4000+) in 14 countries and more than 30 factories or warehouses. 

The Vandemoortele Executive Committee has prepared an impact analysis of Covid-19 and revised its business plans and cash flow forecasting based on different scenario’s with gradual restauration of its businesses Margarines, Culinary Oils and Fats and Bakery Products as from the beginning of 2021 with a longer lasting negative impact on food service channels in Europe. 

These scenarios have been discussed in the board of directors of 14th of May 2020 and the board has given full support to the action plan established by management encompassing, inter alia, the following measures: 

  • Shifting capital expenditure programs from 2020 to the most suitable moment in 2020 or later; Identification of less strategic capex that can be postponed further if needed  
  • Revision of open vacancies, ranking by order of priority and postponement of certain recruitments 
  • Use of economic unemployment to align variable and fixed costs with the reduction of production and sales activities;  
  • Extension of the Club Deal Credit Facility with 1 year on pre Covid-19 terms and conditions securing a credit facility of 200 mio € until May 2025 
  • Excluding from the cash flow forecast the 50 million € cash from the completion of the sale of the shareholding in Lipidos Santiga SA planned for July 2020 ( “ buffer “ ) 

On May 12, the Vandemoortele shareholders had already reduced the proposed dividend pay-out with 8 mio € in order to support the cash flow of the company.  

These actions should secure the compliance of Vandemoortele with its financial covenants in 2020 as well as the compliance with all its financial obligations under the issued bonds. 

Picture: freepik.com/Pressfoto

About Vandemoortele

Vandemoortele was founded in 1899 as a Belgian family business, and has continued to grow and develop ever since. Over the last two decades, we became a European food company with leading positions in two product categories: Bakery Products (BP) and Margarines, Culinary Oils & Fats (MCOF). We are known for supplying innovative and high-quality products.

In 2021 Vandemoortele realised a turnover of around EUR 1.3 billion with 4,800 (permanent and temporary) associates. The Vandemoortele Group headquarters are located in Ghent, Belgium. We have commercial offices in 12 European countries, as well as in the United States. We operate on more than 28 high-quality production sites all over Europe, in order to ensure proximity to all our key markets. We export from Europe to 95 countries worldwide.

News & Media Contact

Marc Croonen
marc.croonen@vandemoortele.com