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Puratos ‘solid’ to inject €80m into 2012 organic growth

By Kacey Culliney , 19-Jun-2012

Puratos records strong 2011 results enabling hefty organic investment for 2012
Puratos records strong 2011 results enabling hefty organic investment for 2012

Belgium bakery ingredients firm Puratos has announced plans to invest €80m in organic growth for 2012 as it posted an 11% net sales surge for 2011.

Puratos recorded sales of €1.3bn for 2011 driven by success across the BRIC countries (Brazil, Russia, India and China) and acquisitions in Latvia and Brazil. EBITDA (earnings before interest, taxes, depreciation and amortization) was posted at €108.3m, up 4% from the previous year. It said that the 2012 early-year figures are “encouraging”. Full results are unpublished as the group is a private entity.

The group also detailed its robust long-term growth strategy with hopes of hitting €2bn turnover by 2018 and €5bn by 2030.

Daniel Malcorps, chief executive officer (CEO) of the Puratos Group, said that the firm remains in line with achieving these long-term milestones.

Malcorps said that despite a slowing global bakery market and pressure from the Eurozone crisis, the firm had been able to commit to strong growth plans.

There had been volatility with raw materials and uncertainty in financial markets, he said, with Greece and Spain remaining a big concern, but Puratos had held its position in both these markets.

“In the end, we are very pleased to be able to continue our growth,” he said.

“In order to secure the group’s continued growth, we rely on organic growth supported by a focused product innovation strategy, technological and geographical expansion – the latter including selective acquisitions when they can help to accelerate the expansion plan,” he detailed.

‘A record amount of capital expenditure’

Puratos will spend what it defines as ‘a record amount of capital expenditure’ (€80m) on several organic growth projects. It will put funds towards continued upgrades to its New Jersey and Belgium manufacturing facilities, establish a new research and development centre in Groot-Bijgaarden, Belgium and a manufacturing plant in Guangzhou, China.

Malcorps previously told this publication that work in China would be dedicated to formulating products to regional needs, as “bakery and patisserie are not global products”.

These organic investments will increase the firm’s capability to produce more innovative and technological products close to its customers across the globe, the CEO detailed.

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