German food group Lekkerland has seen its European turnover grow 4.2 % last year, to 12.484 billion euro.
More European turnover
All important European indicators went up: gross margins grew 23.8 million euro to 595.8 million euro, while EBIT improved 12.9 million euro to 66.5 million euro thanks to the company’s improved cost control. German revenue grew 3.2 % compared to the year before, up to 7.6 billion euro, while the rest of Western Europe managed a 5.7 % turnover increase to 4.8 billion euro.
Its tobacco division’s turnover grew 4 % to 9.9 billion euro, while food / non-food grew 4.6 % to 2.4 billion euro. Other divisions also kept the company-wide turnover growth going, with turnover increases ranging from 4 to 6.5 %.
“Our annual numbers for 2015 show we are on the right track and that we are now achieving our first success stories”, CEO Michael Hoffmann said. “Our Convenience 2020 strategy guarantees Lekkerland’s current and future success, which in turn guarantees our clients’ success.” The Convenience 2020 strategy immediately paid dividends for its Dutch branch, as it helped curtail costs and stimulate growth. Similarly, the program is already active in Germany, while it will also implement it in Austria and Belgium.
More customers and new services
The supplier of convenience food that can be consumed on the go attracted more customers in every market: Starbucks became one of its customers in Germany, while a number of contracts (like German Westfalen Group and Spanish restaurant chain Zena Group) were extended. It also expanded its Swiss reach after it acquired competitor Contadis, a deal it finalized last year.
Lekkerland also launched several new services last year to meet the ever-changing customer needs, including a 360° fitness test for shops, new coffee and bistro formulas, improved web shop functionality and its own SO/OK brand formula. It also invested to improve its logistics, like a new warehouse in Germany and Spain. Its company and computer processes have also been unified over the course of the past year.
Profitable growth continues
Lekkerland’s transformation is also an important feature this year, as it expects a slight turnover and gross margin increase compared to 2015. It also forecasts a moderate EBIT and EBITDA increase. “In 2015, we have made significant progress in order to reach our goal to become the preferential partner when it comes to the convenience business”, Michael Hoffmann points out. “That is why we are full of confidence when it comes to the future and we will vehemently continue our reorientation.”
Lekkerland is a multinational partner for store formulas that offer their customers something to use on the go: it services gas station stores, kiosks, convenience stores, fast food chains, tobacco stores, liquor and food stores, department stores, bakeries and canteens. With more than 90,000 points of sale in six European countries, it has a huge network to sell its product range filled with tobacco products, food-to-go, non-food products, drinks, phone credit, gift cards and many more items.
