September 30 2019

Froneri provides its mid-year update for the six months ended 30 June 2019

Froneri provides its mid-year update for the six months ended 30 June 2019

Strong market share gains and EBITDA growth. Acquisition activity in New Zealand and Israel.


Financial performance

  • Strong share gains in key markets
  • Adverse weather leading to a slow start to the key season in Europe; YTD sales in line with prior year but Q3 has started well
  • ‘A Brand’ sales growth ahead of Group sales
  • Profitability improving as expected, driven by overhead reduction; EBITDA 5.2% ahead of LY
  • Two acquisitions completed: Tip Top in New Zealand (May 2019) and Nestlé Israel ice cream business (August 2019)


Operational performance

  • Successful launch of Nuii, premium ice cream brand in Europe
  • Southern Hemisphere growth continues to diversify earnings including acquisition of Tip Top in New Zealand
  • Post-merger integration on track with further migrations onto Froneri systems
  • Ongoing capital investment to improve efficiency and to drive growth


Performance review

Froneri’s performance in Q1 was strong, with particularly high volumes across most European markets. However, Q2 was behind prior year with markets experiencing adverse weather conditions, particularly in Europe. Despite this, Froneri continued to capture market share, particularly in key markets such as Spain, Australia and the UK. Pleasingly, Q3 has started well.

In early 2019, Froneri successfully launched Nuii, its new premium ice cream brand in six markets across Europe. The response from the market has been very positive and the brand is performing ahead of expectations. Nuii further develops Froneri’s ‘A-Brand’ portfolio which, together with underlying organic growth and the launch of further Mondelez products (e.g. Oreo in Australia), resulted in ‘A Brands’ growing at a higher rate than total Group sales.

The transformation programme continues to go well and Froneri is over-delivering the synergy gains and other costs savings expected through more effective purchasing of raw materials. From an operational perspective, Froneri has made further progress in integrating and rationalising its manufacturing and distribution operations. Other restructuring plans are also delivering reductions supporting EBITDA growth. Spain, Italy and Bulgaria have transferred from legacy systems to Froneri’s operating systems with the remaining markets in Germany, Austria and Switzerland scheduled to be completed by January 2020.

In May 2019, Froneri completed the acquisition of the iconic New Zealand ice cream business Tip Top from global dairy co-operative Fonterra. In August 2019, Froneri also completed the acquisition of Nestlé’s Ice Cream business in Israel which brings all of the Nestlé Europe, Middle East & North Africa ice cream business into the Froneri Group. The integration of both businesses has commenced. In order to finance these acquisitions, Froneri issued additional term loan facilities in the amount of €225m of which €200m was drawn down in Q2. Froneri also increased its RCF.

Q3 has started well. Froneri is looking forward to making further progress over the second half of the year which is expected to be enhanced by the contribution from the Southern Hemisphere businesses including New Zealand.


Notes for editors:

Froneri is a fast-growth international business with a vision to build the world’s best ice cream company. A passionate challenger brand, we are building the market through a focus on ice cream, delivering value for retailers and consumers. Created in 2016 as a joint-venture between PAI Partners and Nestlé, we are the second largest manufacturer of ice cream in Europe, the third largest worldwide and the number one private label producer worldwide. We are present in over 20 countries with revenues of €2.6bn (2018) and over 10,000 employees worldwide. For more information visit: