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Cash from operations showed good
improvement.
The newly acquired Quartiglia Food Service
performed in line with expectations in its first
year and made a small overall contribution to
the pleasing results.
Czech Republic and Slovakia
Bidfood
teams put in another strong performance.
Revenue and trading profit were well up on
the prior year and again exceeded budget,
driven by a buoyant final quarter. June
was one of the best trading months on
record. Sunny skies and high temperatures
underpinned pleasing growth in ice cream
volumes and value-added products.
High productivity levels were achieved at our
factories (ice cream, sous vide meat, ready
meals, red meat and vegetables), but at one
stage sales demand exceeded production
and reserve stock was run down. Frozen fish
processing capacity has been increased.
Sales into the retail channel were pleasing,
particularly in the fresh produce, red meat
and frozen bakery product segments. Strong
interest was also evident in fresh and frozen
fish, frozen ready meals, potato products and
frozen vegetables.
Export volumes – notably meat and game –
also moved higher. Good demand was seen
from both EU and non-EU countries.
Return on funds employed achieved
pleasing improvement, driven by good asset
management and improved profitability.
Additional investment in new factories,
depots and distribution capacity is envisaged
in the coming year.
Farutex Poland
recorded excellent
increases in sales volumes as the Polish
economy remained buoyant, significantly
ahead of the comparative period. Trading
profit also exceeded expectations.
Particularly pleasing growth was achieved in
the free trade market. Sales of fresh produce
and meat were particularly strong. Volumes
in the national accounts channel also rose.
Margins remained stable, cash generation
from operations was strong and return on
funds employed moved higher. Staff numbers
rose to cater for higher growth. Working
capital was well managed and overall cash
flow generation was robust.
Operational efficiency gains included
an ERP system upgrade and continued
investment in plant and machinery. The
vehicle fleet was expanded.
Plans are well advanced for the expansion of
depots in Gdansk and Poznan. Successful
relocation and expansion of the Lublin depot
is complete.
Chief executives
Dick
Slootweg
Bidfood Netherlands
Thierry
Legat
Bidfood Belgium
Bohumil
Volf
Bidfood Czech/Slovakia
Pawel
´Swiechowicz
Bidfood Poland
Ramunas
Makutenas
Bidfood Baltics
.
Daniele
Scuola
DAC Italy
Jordi
Franch
Bidfood Iberia
Markus
Erhart
Pier 7 Germany/Austria
Baltics
revenue rose on prior year, though
the business overall recorded a small
loss. Restructure of the smaller Estonian
operations is under way to stem losses. The
Lithuanian business is profitable.
Foodservice volumes were significantly up
across the business. Growth is largely driven
by broadening of our product portfolio. The
foodservice client base showed continued
growth. Foodservice now represents 51%
of total revenue.
In the retail channel, our Nowaco exclusive
branded frozen fish and seafood did well, as
did chilled fish from our Riga fish processing
plant. Good progress is apparent with our
strategy of achieving wider distribution of our
own brands.
Germany and Austria
markets were
added to the Bidfood European footprint
post-year-end with an acquisition of 70% of
Pier 7 Foods, a small foodservice business
based in Munich, Germany, incorporating five
locations within Germany and one in Austria.
33
Annual integrated report 2017
Bid Corporation Limited