Q3 Sales at Wessanen up Over Nine Percent

25 Oct 2016 --- Wessanen has reported that sales were up over nine percent to €137.5 million ($126m) in the third quarter, aided by strong demand for organic brands Bjorg and Bonneterre in France.

Profits were down slightly from €6.1m ($5.6m) to €6m ($5.5m) in Q3, after the Netherlands-based organic food company was hurt by a sharper decline in its private label business in the quarter.

Across its brands, Its Clipper tea brand reported double-digit growth, helped by securing new listings. In the UK, Wessanen has bought out a “Super Green” Clipper range while in markets outside the Netherlands, the focus has been on green tea and infusions. Clipper performed particularly well in Germany.

Peanut butter brand Whole Earth performed well and has been helped by its repositioning as a “power fuel for athletes”.

Along with its brands, sales at Wassanen, which operates in France, UK, Germany and the Benelux countries, were also helped by the fall in value in sterling.

While a number of Wessanen's brands performed well in Q3, its private label business was undermined by a big fall in sales in Italy.

Christophe Barnouin, Wessanen CEO said: “We have sustained our good growth momentum on own brands in Q3 and year to date growth stands at 9.2 percent.”

“Autonomous revenue growth for total Wessanen remains at the upper end of our guidance range of 5-7 percent year to date, despite an accelerated decline of private label business in Q3.”

“In the quarter we achieved an EBITE margin of 7.3 percent despite investing significantly more A&P into our brands.”

“Integration plans of Piramide, Inebio and Mrs Crimbles are being executed as planned. We are on track to deliver a good 2016 result both in terms of growth and profit as we are further strengthening our brands in a growing market for healthier and more sustainable food.”