Food Union Achieved an 11% Increase in Net Revenue, Reaching EUR 323 Million
Source: The DairyNews
Food Union, a leading ice cream and dairy producer and distributor in Europe, has announced its financial results for 2023, showcasing significant growth and resilience.
The group achieved an 11% increase in net revenue, reaching EUR 323 million, and reduced losses by 58%, from EUR 11.5 million in 2022 to EUR 4.8 million. This performance reflects the company’s successful internal transformation focused on top-line growth, cost efficiency, and market expansion.
Key highlights of Food Union's strategic focus include the development of 50 new ice cream products for Summer 2023, optimization of its product portfolio, and a strong commitment to sustainable, value-added growth. The company has also strengthened its doorstep-delivery business, entered new export markets, and enhanced cooperation with local partners.
Artūrs Čirjevskis, CEO of Food Union in Europe, commented on the results: “In 2023, the European food industry faced significant challenges, including inflation and the war in Ukraine, which impacted supply chains and consumer behavior. Despite these obstacles, Food Union not only adapted but also grew, improving market shares across all our markets. Our focus on pricing and procurement strategies, cost reduction efforts, and growth in doorstep-delivery and exports were key to our success.”
The company invested EUR 8.7 million in total net cash for investing activities, including EUR 2 million for truck upgrades aimed at creating a greener fleet and EUR 6.7 million in property, plant, and equipment.
Significant changes in ownership and senior management were announced in early 2024. PAG Private Equity, previously one of three investors, became the majority shareholder by acquiring shares from the company’s founder and other shareholders. This resulted in the separation of Food Union Group in Asia from the European operations. The new Executive Leadership team includes Artūrs Čirjevskis as CEO and Soren Lauridsen as Executive Chairman.
Looking ahead, Food Union is poised for further advancement as the economic landscape stabilizes in 2024. The group plans to launch over 55 new ice cream products for the summer season and a comparable number of dairy product innovations.
Key highlights of Food Union's strategic focus include the development of 50 new ice cream products for Summer 2023, optimization of its product portfolio, and a strong commitment to sustainable, value-added growth. The company has also strengthened its doorstep-delivery business, entered new export markets, and enhanced cooperation with local partners.
Artūrs Čirjevskis, CEO of Food Union in Europe, commented on the results: “In 2023, the European food industry faced significant challenges, including inflation and the war in Ukraine, which impacted supply chains and consumer behavior. Despite these obstacles, Food Union not only adapted but also grew, improving market shares across all our markets. Our focus on pricing and procurement strategies, cost reduction efforts, and growth in doorstep-delivery and exports were key to our success.”
The company invested EUR 8.7 million in total net cash for investing activities, including EUR 2 million for truck upgrades aimed at creating a greener fleet and EUR 6.7 million in property, plant, and equipment.
Significant changes in ownership and senior management were announced in early 2024. PAG Private Equity, previously one of three investors, became the majority shareholder by acquiring shares from the company’s founder and other shareholders. This resulted in the separation of Food Union Group in Asia from the European operations. The new Executive Leadership team includes Artūrs Čirjevskis as CEO and Soren Lauridsen as Executive Chairman.
Looking ahead, Food Union is poised for further advancement as the economic landscape stabilizes in 2024. The group plans to launch over 55 new ice cream products for the summer season and a comparable number of dairy product innovations.
