The apetito group turned in a solid growth performance during 2012. Overall sales of the Rheine, Germany-based company were up 6% to 733 million euros. Consolidated sales (apetito AG including subsidiaries in Germany and abroad) increased 6% to 563 million euros, and the consolidated profit after taxes was 24.6 million euros.
“We have added another chapter to the apetito success story,” said Supervisory Board Chairman Wolfgang Düsterberg at the company’s annual press conference in Düsseldorf.
The high world market prices for raw materials were once again the biggest challenge. “Raw material prices will continue to rise, and it’s getting more and more difficult to compensate for this by optimizing our processes,” said Düsterberg. Domestic earnings were unsatisfactory because of high price pressure and fierce competition on the German retail market. On the whole, however, the family-owned company was once again able to achieve profitable growth and to maintain its market position in several segments. Strict cost management and the dedicated commitment of the apetito staff were keys to this success.
The apetito group employed 8,902 persons during the year, an increase of 2%. The consolidated headcount (apetito AG including subsidiaries) was down 4% because of restructuring programs at Hilter, Germany, Denekamp, Holland, and Toronto, Canada. The workforce was also reduced in France.
The development of apetito’s four segments showed varying trends.
On the domestic market, apetito AG had positive sales, and the key growth driver was institutional catering, which serves daily meals to daycare centers, schools, firms, retirement homes and the like. The domestic segment contributed a 25 % share to overall sales.
In the food retailing market, apetito faced high price pressure and intense competition. It still was able, though, to achieve significant growth with its COSTA seafood brand, which was rated the fastest growing brand in the 2012 German frozen food retail trade. Sales to the retail trade represented an 18% share in overall sales.
The group’s foreign sales were primarily boosted by the British operation, apetito Ltd. The UK franchised meal brand of “Wiltshire Farm Foods” in particular achieved above-average growth. In the Netherlands, Bonfait B.V., specializing in chilled meals for the retail and wholesale trade, recorded substantial growth rates. The Dutch frozen meal company apetito B.V. performed steadily, as did the group’s Canadian operation. The French business declined in 2012 due to the loss of a key catering account. In sum, the share of foreign business in the group’s total sales rose slightly to 32%.
A sister company, apetito catering B.V. & Co. KG, specializes in contract catering services. It achieved a sales increase of 6% (including joint venture sales) and contributed a 25% share to the group’s total sales.
Though capital expenditure didn’t reach the record levels of 2011, apetito again invested heavily in its production sites. It spent 23.9 million euros on extensions and modernizations, such as the IT infrastructure and the new logistics and distribution center in Rheine. High capital expenditures are also planned for 2013. Capital expenditure for research and development, primarily in Germany and the United Kingdom, amounted to 3.2 million euros.
One focus of R&D activity was the launch of the new “Geschmack pur” (pure taste) range for the meal and institutional catering markets. “With this new range we consistently deliver on our brand promise to cook with natural ingredients only and not to use unnecessary additives,” explained Düsterberg. The firm introduced a new multi-portion paper tray to the German daycare catering segment, while in the UK a flexible meal system won the 2012 National Business Award for innovation.
The company continues to have good relations with its employees, customers and suppliers. Among the employees 40% have been with apetito for more than 15 years while 22% of the customers have been buying products and services for that long. And apetito was not affected by the year’s food scandals. “A strong sense of responsibility for the foodstuffs with which we work, but also for our employees and our customers, these are the values that will continue to matter to us,” said Düsterberg.
Meanwhile, Andres Ruff, 52, has departed as chairman of apetito AG. Though he will be seeking new professional challenges after seven years, he will remain available to the firm for counseling. Chairman of the Supervisory Board Wolfgang Düsterberg and Deputy Board Chairman Guido Hildebrandt will head the board for the time being. The retail segment, for which Ruff was responsible, will be taken over by another party. Ruff came to apetito in 2006 as Member for Retail and Strategic Marketing, and took over as chairman in 2007.
Picture:
Director of Catering Jörg Rutschke, Chairman Wolfgang Düsterberg and Deputy Chairman Guido Hildebrandt presided at the annual press conference.
