The profitability of the rapidly growing Van Loon Group is under pressure, according to annual figures filed for 2022 with the Chamber of Commerce. Turnover, on the other hand, grew by more than €100 million last year and remains just below the €1 billion mark. The company speaks in response to the figures of a challenging market.
Van Loon Group has experienced impressive growth in recent years. Bonfait, part of the German Apetito, was bought in 2021. Its wings were also spread to the meat substitute market through its subsidiary No Meat Today Company. With the expansion, turnover has grown rapidly in recent years. Due to the high meat prices, turnover increased sharply again last year, rising from €880 million in 2021 to more than €997 million. However, profitability is under considerable pressure and has fallen from €18 million to €3,34 million.
Under average
"We managed to maintain sales volumes in 2022. We are pleased with this, given the comparison with corona year 2021 and the fact that meat consumption is shrinking slightly," said a company spokesperson. The increasing turnover is almost entirely the result of the increase in sales prices. According to the company, the fact that profitability is not increasing and has even fallen considerably is a result of rising purchasing prices for pigs and cattle, among other things, but also materials, energy and labor costs. "We have delayed these price increases in 2022 and have not been able to fully pass them on to our customers." The company also indicates that growth in sales of meat substitutes is lagging behind previous expectations. Van Loon Group believes that profitability in 2022 was well below par, given that a small plus is still being achieved.
Growth agenda
The spokesperson further emphasizes the positive cash flow and the healthy solvency of 42%. “This enables us to further roll out our growth agenda, despite a lower year in terms of profitability.” In 2022, the company invested more than €10 million. This year, Van Loon Group has again made the necessary acquisitions. Meal manufacturers are particularly popular. For example, the Belgian Q-Group was recently incorporated. Maître from Oude-Tonge was also added to the company this spring. Van Loon Group does not make any statements about the provisional results in 2023.