For Vandemoortele, the first half of 2023 was dominated by strategic improvements in product and channel mix, strong operational excellence and cost control and price increases to absorb the huge cost inflation. As a result, the Group saw a significant year-on-year improvement in its financial performance. Our good financial results went hand in hand with a strong sustainability performance: our safety results are better than ever, we continued to reduce our energy intensity, we reached our 2023 targets for sustainable palm and soy oil, and we further improved on closing the gender pay gap. By continuing to make progress in many areas, we aim to further improve our company and contribute to a more sustainable world.
Mid-year report 2023 (PDF)
Mid-year report 2023: key financials (PDF)
Financial results
“For the first half of the year, the Vandemoortele Group delivered a strong financial performance”, says CEO Yvon Guérin.
“This strong performance is visible in both business lines and is mainly the result from a better product & channel mix, strong cost control, operational excellence and having adapted prices to absorb the huge cost increases in raw materials, ingredients, packaging, energy, logistics and general inflation. These improvements are fully in line with our strategic plans.”
Group Revenue increased by € 152 million to € 943 million resulting from an improved product and channel mix and the price increases that we had to put through to compensate for increased costs. Volumes slightly decreased as a consequence of a somewhat lower consumption and the deliberate shedding of less profitable business. Adjusted EBITDA went up to € 105 million and this resulted in an adjusted EBIT of € 75 million.
After certain non-recurring restructuring charges, operating profit (‘EBIT’) reached € 71.4 million, compared to € 35 million in the first half of 2022.
The Group realised earnings after tax (EAT) of € 49.6 million, versus € 26.8 million in the first half of 2022. The balance sheet of the Group remains solid: the equity capital amounts to € 524 million, with a senior net financial debt of € 9 million as at 30 June 2023, which is a substantial reduction compared to the first half of 2022.
A number of large investments were also activated and will contribute significantly to our short-term and long-term growth.”
Sustainability performance
Vandemoortele’s good financial performance goes hand in hand with a strong sustainability performance. Marc Croonen, Chief Human Resources, Sustainability and Communication: “As safety is our first priority, we are happy to share that we keep improving. Regarding lost workday cases, we have already reached our 2023 targets in terms of frequency (17.9 vs. target 18) and severity (0.57 vs. target 0.60). Our associates can also count on us in other areas. For example, in the first half of 2023, we further improved on closing the gender pay gap in our company.”
“We continue to manufacture our products as sustainably as possible. With regard to the purchase of sustainable palm and soy oil, we are already above our 2023 target. We have also reached our energy intensity ambition for the Group (-6.9% vs. target -6.0%) way ahead of schedule, mainly thanks to the excellent performance of the Bakery Products division, and we continue to work on our carbon intensity reduction target of -63% in Scope 1 & 2 (we are currently at -60.2%). Our main challenge remains the reduction of our gas consumption. Most of our PET vinaigrette bottles now contain at least 30% r-PET, and we have also further increased the volume of our Clean Label products.”
Outlook July – December 2023
The full-year outlook for 2023 remains somewhat uncertain. “This is mainly because inflation, higher interest rates and war continue to have an impact on the purchasing power of households and on the energy and raw materials market”, says Jean Vandemoortele, chairman of the Board of Directors.
“However, we feel confident that we have the right tools, expertise and experience to cope with difficult circumstances. We will maintain the pace of our planned investments in the second half of the year, so we can keep the Vandemoortele Group on the road to increased profitability and sustainability in the coming years.”
