Profit drop despite record sales for Ferrero

Italian confectionery manufacturer Ferrero has posted a quarter lower profit in 2022 due to rising raw material and staff costs, even though the owner of brands such as Nutella, Kinder chocolate and Tic Tac did achieve record sales.

Financially healthy

Last week, it was announced that Ferrero achieved record sales of 14 billion euros in its latest financial year, which ended on 31 August. The sales increase of more than 10 % was mainly due to the strong performance of its flagship brands Nutella, Ferrero Rocher and Kinder Bueno. However, it now appears that this growth did not lead to higher profits: net profit came down 24 % to 751 million euros, Belgian business newspaper De Tijd reports. With equity of 4.2 billion euros, the company does remain financially healthy.

The manufacturer attributes the drop in profits to sharply higher costs for raw materials and personnel. The workforce grew from 38,800 to 41,400 employees. The manufacturer does not comment on the final impact of the salmonella contamination in Ferrero’s Belgian chocolate factory in Arlon. That factory had to remain closed for weeks for thorough cleaning.