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Italy
Gradual improvement in the Italian economy
is under way, though deflation is cause for
concern.
Pleasing results were achieved, with revenue
and trading profit above both budget and prior
year. Expenses were impacted by the costs
of operating the new Rome warehouse, but
overall were well managed.
Sales of ambient and frozen products continue
to grow as a result of strong penetration of the
“street market”. This element of the mix now
accounts for about 60% of sales. The growth
drive in the “single customer” channel will be
maintained.
Cash generated by operations remained
healthy as working capital was well controlled.
Going forward, slower growth in the national
foodservice market is projected. To accelerate
the rate of our own growth, DAC will pursue
acquisition opportunities, with strong focus on
central Italy and the south.
Poland
The national economy continued on the
growth path, and our business recorded
strong sales growth, with a particularly
impressive performance in the wholesale
segment of the market due to good volume
increases. No significant contracts were
lost while some key national accounts were
extended for a further two years.
Trading profit was well ahead of the prior year
and overheads were well controlled. Cash flow
remained robust despite an investment into
working capital for growth.
Construction on the new central warehouse
was completed during the year. It went into full
operation in October.
5 711
2015:
5 022
Total employees for 2016
Total
54
m
2
476 229
Baltics
Overall sales in Lithuania, Latvia and Estonia
achieved solid growth. The main driver of
higher volumes was the foodservice segment
as retail exposure declined.
Sales of chilled, frozen and ambient product
ranges show good growth, while fresh
fish sales have enjoyed impressive gains.
Retail sales have been under pressure,
however. Foodservice sales to independent
foodservice clients remain the core focus of
the businesses.
Spain
The Spanish economy sent mixed signals
as uncertainty set in following robust growth
in the first quarter of calendar 2016. Annual
sales rose, but failed to meet budget and
a small loss was again recorded. Expense
management remains a challenge.
Growth potential has been identified in
the fresh produce category and the hotel
channel. Efforts will be stepped up in these
areas in 2017.
Turkey
Economic growth continued unabated,
underpinned by solid consumer spending,
though concern is growing around a fall-off in
revenues from tourism.
Total sales moved higher, supported by strong
growth in the foodservice segment. Terror
attacks have impacted tourism and out-of-
home eating in Istanbul, where our operations
are mainly centred.
Fuel usage – kilolitres
Diesel (excl biodiesel) usage
2016:
10 534
2015:
10 098
Gasoline (petrol) usage
2016:
807
2015:
796
Distribution vehicles
1 276
Product segmentation
Frozen
32%
Chilled
34%
Ambient
29%
Non-food
5%
42
26
13
16
66
5
28
4
32
26
43
42
15
38
4
32
34
13
21
9
57
29
5
41
21
28
64
8
35
3
Market segmentation
Logistics
13%
Chain
21%
Independent
57%
Retail/other
9%
42
26
13
16
66
5
28
4
32
26
43
42
15
38
4
32
34
13
21
9
57
29
5
41
21
28
64
8
35
3
Total water usage – kilolitres
2016:
R31,0 bn
2015:
R24,8 bn
2016:
R1 053,6 m
2015:
R860,5 m
Pro forma revenue
Pro forma trading profit
Distribution centres
2016:
155 364
2015:
139 764
Divisional reviews
Bidcorp Limited Annual integrated report 2016 |
Page 27