Food Union,a prominent food producer in Latvia,including JSC “Rīgas piena kombinats” and JSC “Valmieras piens,” reported a turnover of 151.9 million euros in the past year. This figure represents a 1.1% increase compared to 2023. the Group’s gross profit saw a rise of 2.4%, reaching 26.9 million euros.
Arthur Chirjevsky, Food Union’s head in Europe and Latvia, highlighted that the company’s growth last year was marked by notable changes, the implementation of a targeted strategy, and a focus on future growth. Early in the year, the company underwent changes in ownership and management, alongside the introduction of a new strategy and the refinancing of obligations with Deutsche Bank.
Chirjevsky noted that despite these transitional processes and market challenges, including fluctuating raw material prices, Food Union continued to innovate by developing new products. The company experienced growth in product categories with higher added value and saw an enhancement in its export performance.
The food production sector in Latvia and across europe was impacted by high and increasing raw material costs, particularly for raw milk and cocoa, which are essential ingredients for dairy products and ice cream. In response, Food Union revised its procurement strategy and adjusted its pricing policy to absorb these rising costs. The company aimed to maintain product availability for consumers without substantially increasing retail prices.
In the ice cream segment,food Union launched a total of 12 new products last year.
Furthermore,in 2024,Food Union completed a significant investment project focused on enhancing automation in its production processes,with an investment exceeding 2.5 million euros. This project involved the acquisition of automatic packaging systems for ice cream, cottage cheese, and cream cheese, which are expected to boost production capacity for these items. The company intends to continue its investment in automation in the coming years.
At the beginning of 2024, changes were made to the ownership structure of Food Union. Andrei Beshmelnicki, the company’s founder, and the investment company meridian Capital ltd withdrew from the beneficial ownership structure, with Beshmelnicki becoming the sole beneficial owner in March.
The Food Union Group’s turnover in 2023 increased by 12% compared to 2022, reaching 150.2 million euros. Concurrently, the Group’s losses decreased substantially, by 4.2 times, amounting to one million euros.
Share yoru thoughts on Food Union’s performance and future plans in the comments below! Don’t forget to subscribe to World Today News for more updates.
