Parallel Ferrero' consolidates 3 billion turnover and 890 million gross margin

CTH Invest, the 'parallel Ferrero', a holding company directly controlled by Giovanni Ferrero and representing the second industrial and financial pillar of the Ferrero Universe, next to Ferrero International, approves its first consolidated financial statements for the financial year 2023/2024, closed on 31 August, with 3 billion in revenues. The company holds part of the main acquisitions made by the Group in recent years, mainly in the biscuits and candies segment.

Two new businesses launched by Ferrero in recent years, strengthened through a policy of acquisitions thanks to which the Group has also expanded the range of products under its historical brands, such as Nutella Biscuits or Kinderini, which are not, however, part of CTH. As reported by Il Sole 24 Ore in May last year, the revenues of the CTH holding company should be added to those of Ferrero International to give a complete picture of the business at the head of the Ferrero world, which, in the light of the latest balance sheet presented by the Group's main holding company at the beginning of the year, is close to €21.5 billion.

CTH Invest encompasses the Ferrara Candy Company, Fine Biscuits Company and Fox's Burton's Company, the three assets operating predominantly in the biscuit business and boasting, the Group wrote in a note, a gross margin of EUR 890 million, 'reflecting the Group's strong operating base and demonstrating financial resilience with robust cash flow'. With operations on four continents, the CTH Invest Group operated 25 production facilities and 12,882 employees as of 31 August 2024. Numbers that add up to those of the historical holding company and bring the total to 62 plants worldwide and over 60,000 employees, excluding however the latest deal on Kellog in the US.

"This year's performance demonstrates the strength and resilience of our business," emphasises Guido Giannotta, Director of CTH Invest. "Despite a year characterised by a challenging economic environment, fluctuations in commodity prices and inflationary pressures globally," he adds, "we achieved solid growth, strengthened our market position in the candy and biscuit categories, and made progress in key geographic markets. On the M&A side, CTH completed the acquisitions of Dori Alimentos in Brazil, Jelly Belly Candy Company in the US and Michel et Augustin in France, while after the year-end, the holding company finalised the acquisition of Nonni's Bakery, also in the US, on 1 October '24.

The CTH holding company was created in 2016, on the heels of the acquisition season launched by Giovanni Ferrero, to accommodate a series of assets that probably reflect an industrial logic and investment dynamic different from the historical assets. If brands such as Nutella, Kinder or Ferrero Rocher have developed and grown from specific products, with investments spread over time, the new acquisitions have determined a completely different financial dynamic, involving high outlays in the initial phase to acquire and relaunch production. "In addition to revenue growth, we have expanded our production capacity and global workforce, reflecting the long-term vision and strategic orientation that drives our business," Giannotta emphasises.