Financial results

US acquisition and organic growth boost Ferrero’s turnover

By Anthony Myers

- Last updated on GMT

Ferrero has expanded its portfolio of brands. Pic: Ferrero Group
Ferrero has expanded its portfolio of brands. Pic: Ferrero Group

Related tags Ferrero Chocolate Confectionery

The Ferrero Group said it is continuing its growth trajectory with a 21% increase in turnover to €17 billion ($18.25bn) and a 14% rise in its global workforce to 47,212 employees, following the recent successful strategic acquisition of North of ice cream maker Wells Enterprises Inc.

Despite a 2022-2023 financial year marked by a challenging economic and geopolitical environment, the Ferrero Group said it could continue its robust growth and consolidate its market share across categories and regions thanks to the resilience of its people, brands, and business model. Ferrero's manufacturing plants worldwide grew to 37 from 32 the previous year, while the Group's global workforce, as of August 31, 2023, amounted to 47,212 employees, up from 41,441 as of August 31, 2022.

"We are pleased to report a period of strong growth despite the economic and geopolitical challenges, with continued inflationary pressures remaining a factor across the globe. In addition to revenue growth, the global workforce has also grown by over 5,000 people, which is a testament of the long- term vision of our business strategy," said Daniel Martinez Carretero, chief financial officer at Ferrero Group.

Iconic brands

At the end of January 2023, the Group completed the acquisition of Wells Enterprises, its operations, and its strong portfolio of iconic brands, which include Blue Bunny, Blue Ribbon Classics, Bomb Pop, and Halo Top. The acquisition is part of the Ferrero Group's strategic growth ambition to expand its business in North America and the ice cream category. The deal also included four US manufacturing facilities in Iowa, Nevada, and New York.

At the end of March 2023, the Group also finalised the acquisition of Fresystem Group, an Italian family-owned business that produces frozen bakery products. The acquisition is part of Ferrero's strategic growth plans and follows the launch of Nutella Muffins, which have been produced by Fresystem since 2021.

Ferrero has expanded its production capacity to meet increasing demand for its products. This financial period saw total capital investments of €811 million – the main investments were property, plant, and equipment in Italy, the United States, Germany, and Spain.

In a statement, Ferrero said: “Innovation remains at the core of our DNA to support the growth of our most iconic brands, expanding their presence into new categories of the Sweet Packaged Food arena, thus meeting new consumer needs.

“This was exemplified in the 22-23 fiscal year by introducing new Kinder, Rocher, and Raffaello references within the Ice Cream segment across Europe and the successful rollout of Nutella Biscuits and Nutella B-ready in the United States.”

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