A model that responds well in tough times
We have closed a year plagued with enormous tough challenges: 1) the successive waves of Covid-19; 2) extreme weather events; 3) significant reduction of harvests; and 4) major hikes in costs (€83 million more than in 2020 and €143 million more than in 2019). Yet we have the satisfaction of having confirmed once again the consistency of our business model, obtaining very positive results similar to those achieved in 2020, which was a record year in our company.
This was made possible by: 1) our diligence in decision-making; 2) the strength of our brands, which continue to consolidate their leadership and increase their market shares; 3) consumer recognition and confidence in the quality and differentiation of our products; 4) diversification and taking adequate positions in raw materials; and finally 5) the good health of the Group’s businesses, which have managed to mitigate the impact of spiralling inflation.
It has been a year of intense work, during which, while riding out the present difficult situation, the Group has forged ahead in the development of its strategy, closing a cycle that culminated with our withdrawal from the dry pasta businesses, and beginning a new one based on a firm commitment to the premium, fresh and convenience segments, in consideration of their greater profitability and better growth prospects.
As 2022 unfolds, it is expected to be even tougher owing to the evolution of inflation, the need to negotiate in order to pass on the increased costs into prices, and droughts, but we trust that our strengths, the generation of synergies and our continuous efforts to streamline costs will stand us in good stead to steer through the year.