Fleury Michon, a key player in the food and beverage industry, has announced the divestiture of its “meal trays” business located in Ile de France. This move is part of the company’s strategy to align its operations with current food and drink consumer trends, focusing more on supermarkets and airline catering.
The publicly-traded cooked and processed-meats company confirmed that the sale involves the manufacturing and marketing operations of this segment, which has now been acquired by Kumo, a local Japanese street-food producer. As the company stated, “This transaction marks Fleury Michon’s desire to focus its development on its core business in supermarkets and on the development of airline catering activities, in accordance with its strategy deployed since 2021.”
While the financial specifics of the agreement with Kumo were not disclosed, Fleury Michon indicated that the assets sold represent a turnover of €13 million ($13.7 million), accounting for less than 2% of the group’s total revenues and resulting in a “negative operating result.”
In the 2023 financial year, Fleury Michon reported a turnover of €836.2 million, reflecting a growth of 5.2% compared to the previous year. Additionally, the company’s operating profit remained stable at €15.4 million, an increase over the €15 million recorded the year prior, while net profit surged to €10.3 million, up from €2.4 million.
The divestiture of this asset, expected to be finished by the end of the year, is anticipated to negatively impact Fleury Michon’s financial results by around €3.5 million. Kumo has yet to respond to requests for comment regarding the acquisition.
This isn’t the first instance of Fleury Michon restructuring its portfolio in line with prevailing food and drink business trends. Earlier this summer, the company exited a venture in Spain, selling its entire stake in Platos Tradicionales— a joint operation of a ready-meals factory— to its partner Familia Martínez for €68 million. Furthermore, in 2023, the French firm also disposed of a charcuterie factory in Plélan, Bretagne, specializing in ready-to-eat charcuterie and pâté products. In the previous year, it sold its Proconi ready-meals business in Slovenia to local competitor Eta.
These strategic moves showcase Fleury Michon’s commitment to refining its operations in an ever-evolving market landscape while emphasizing its focus on adaptability and alignment with current consumer preferences within the food and beverage sector. For further insights, consider accessing a comprehensive Company Profile backed by GlobalData to enhance your understanding of the industry dynamics and trends shaping the future of food and drink.
