French food manufacturer Bonduelle's yearly profits for its broken fiscal year 2013-2014 has dropped 70 %, mainly because of the huge fine Europe imposed because of price arrangements.
70 % lower profits
Bonduelle announced in August that it had an excellent year in 2013-2014 with turnover up 5.5 % to 1.92 billion euro, "better than the announced full-year forecast".
The European fine, regarding anti-competitive practices in the market of canned mushrooms, cast a huge shadow of the boastful news. The Dunkerque-based company has now announced its yearly profit dropped 70 % to 15.2 million euro.
"The net burden of non-recurring item stands at € 36.1 M and includes the fine imposed by the European Commission for anti-competitive practices in the market for the sale of canned mushrooms under retailer brand in Europe for an amount of € 32.4 M, procedural costs included", according to Bonduelle.
Bonduelle has also announced that the group's financial situation is still strengthening and that the "group's financial structure allows again to envisage new growth projects."
It has signed a sales agreement on 26 September with Canadian distribution group Sobeys to purchase a freezer factory in Lethbridge (in West Canada, close to the American border). It can handle 15,000 tonnes of frozen products and the deal should be finalized in November.