Lekkerland Group: slight decline in result and revenues

According to company statements, in 2018 Lekkerland “created the basis for continued positive development” with important contract extensions, the acquisition of acclaimed new customers and tailor-made, innovative services for customers.

While there was a decline in revenues and the operating result, “This was primarily the result of a particular customer in Germany leaving our clientele, a process which has now been concluded”, according to Patrick Steppe, CEO of Lekkerland AG & Co. KG. A portion of the revenue decline – specifically € 127.1 m at the group level – was additionally attributable to the initial application of the IFRS 15 accounting standard. Steppe comments, “The 2018 fiscal year exceeded our ambitious expectations and, in light of the challenges, went positively”.

Lekkerland is active in seven European countries: Germany, Belgium, Luxembourg, The Netherlands, Austria, Switzerland and Spain. In Germany, revenues came in at approximately € 6.9 bn (2017: approximately € 7.6 bn) with the operating result (EBIT) registered at € 77.4 m (2017: € 79.0 m). In the “Rest of Western Europe” segment, which summarises all the activities in the other countries, Lekkerland increased its 2018 revenues up to € 5.4 bn (2017: € 5.2 bn).

Revenues in the individual product groups developed as follows: Lekkerland Group “Tobacco Product” revenues fell by 3.1% down to € 9.8 bn (Lekkerland Deutschland GmbH & Co. KG: - 7.4% / € 5.8 bn). In the “Food/Non-Food” segment revenues declined by 3.0% down to € 2.5 bn (Germany: - 12.5% / € 1.1 bn), while the “Commissions” segment revenues at electronic value (e-va)/Miscellaneous dropped by 6.2% down to € 111.8 m (Germany: - 8.0% / € 71.2 m).

Steppe emphasises, “We supply our customers with the right product portfolio to ideally position them to meet the demands of customers and accommodate the latest trends in on-the-go consumption”. Numerous customers that extended their agreements with Lekkerland last year rely on this service. This clientele includes the Westfalen Group in Germany, as well as the Dutch subsidiary of the BackWerk bakery chain. Among Lekkerland’s most important new customers is the Canadian fast-food chain Tim Hortons, whose entire supply chain in Spain is managed by the Lekkerland subsidiary, Conway.