02/10/2015

Ferrero nearing 10 billion in sales

Ferrero group stroke of genius after Giovanni Ferrero’s announcement last May to focus on growth through take-overs. And at the Milan Expo settings yesterday, Ferrero SPA president Francesco Paolo Fulci announced that thanks to the take-over bid launched last summer for the British Thorntons, “annual group sales will rise over 10 billion this year over the 8.4 billion Euro posted last year”. The news emerged in the sidelines of the Milan Expo presentation of the group’s VI social responsibility report.

source: Il Sole 24 Ore date 02.10.2015

The 1.6 billion spike from one year to the next (the financial year ends on August 30th) will probably be driven by the Thorntons consolidation but also by internal growth and perhaps by the consolidation of the Turkish Oltan, nut leader purchased in July 2014 with revenues for 500 million dollars. Moreover, the confectionery giant increased sales by 1.2 billion in the last three years. Will the company focus on new take-overs? Fulci chose to be prudent, deferring the question to CEO Giovanni Ferrero, recalling, however, that “we just opened a factory in China investing 300 million dollars and I don’t think we have our sights on any other factories”. Since last February Ferrero has risen to third place in the world’s packaged chocolate manufacturer’s rankings and “we intend – added Fulci – to continue along this road since our formula has proven to be a winning one; we have been welcomed with enthusiasm wherever we’ve taken our products and this leads us to believe will can conquer other markets”. As for corporate social responsibility, Fulci recalled that “we will continue to believe in our social duties and pursue this for both the people who work for us and in the more needy less developed countries”. The sixth corporate social responsibility report is entitled “Sharing values to create value”: it reflects Ferrero’s social and environmental sustainability activities developed throughout the world from September 2013 to August 2014 as well as the strategic vision THE GOALS for 2020 40% reduction of CO2 emissions, 30% reduction is greenhouse gas emission, 100% use of sustainable Ferrero cocoa and cane sugar until 2020. The multinational confectionery manufacturer reiterates the sustainability goals: some met, like 100% palm oil certified as sustainable and segregated, 100% eggs from barn-raised chickens with due regard for animal well-being while, for now, the 70% goal self-produced energy over energy consumed in European factories was only partially achieved, of which 18% from renewable resources. Others will be reached by 2018 like the extension of the Kinder+Sport program to 30 countries. And yet others by 2020 like the 40% reduction of CO2 emissions, the 30% reduction in greenhouse gas emissions, the 100% goal of certified and sustainable cocoa and cane sugar. Giovanni Ferrero, in the report introduction, dedicated a few words to his father, Michele Ferrero: “He was a forerunner in corporate social responsibility. Many of our group’s commitments to those who work or have worked with and for us were conceived by him. He formed Ferrero social companies in Asia and Africa to create new jobs on those continents. He was the one that drove us to protect our surrounding environment. He always encouraged sustainable raw material provisioning, always of the highest quality”. A consistent vision over the years, even due to the change in corporate social responsibility strategies that evolved from the 4 social responsibility pillars (products, Ferrero Foundation, social companies and Kinder+Sport) to a new one, starting with this year’s report, called “People and Planet”. For the company, People means consumers, “on whom – the report states – the group daily focuses, offspring of a sense of responsibility that goes beyond the year’s results and that is expressed in Ferrero’s strategy for nutrition, quality and freshness, food safety and responsible communications”. Ferrero has set clear goals for the Planet and environment for 2020 “striving – concludes the report – to develop sustainable farming practices and minimise our environmental impact. Specifically, the Ferrero farming values program guides the social responsibility activities in the raw material provisioning chain”.

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