STEF had a very mixed first half of the year. After a positive start, the company faced a major disruption in flows, followed by a slowdown in business, stemming from the measures implemented to curb the pandemic in Europe. The company saw a decline in turnover (-10.5%) and sharp drop in EBIT (-58.5%) and net income (-62.7%), amidst a crisis that impacted the food supply chain.
The half year ended with a show of resilience: food volumes and business performance both recovered. Meanwhile, STEF allocated a budget of EUR9m to compensate its front-line workers and EUR4m to purchase protective equipment.
In France, the lockdown led to changes in consumer behavior and supply chains which had varying effects on the Group’s business activities. Retail business proved very dynamic, thanks to strong growth in e-commerce and the shift in volume from foodservice to traditional distribution channels. Dry and ambient business held up well, buoyed by the development of new projects in the chocolate market. The frozen goods business was able to limit the effects of the crisis through high fill rates and an earlier resumption of business.
Internationally, the half year drew to a close with the creation of a joint venture in the seafood sector, MED SEALOG, which is now a leading player in Italy. The maritime business, which was already operating in a reduced scope limited to port services for Propriano and Porto-Vecchio, was hit hard by the health crisis. In accordance with the emergency health plan, the company was forced to temporarily halt passenger transport between Corsica and the continent, and limit freight trips.
“Amidst this unprecedented health and economic crisis, I would like to reiterate my pride in the remarkable dedication shown by all our employees, which has enabled the Group to provide its essential services to the public without interruption, even at the height of the epidemic. Despite the resilience that STEF has demonstrated and the adaptation plan implemented, our results reflect the amplitude of the turmoil caused by the pandemic with regard to food consumption, and the resulting economic contraction”, Stanislas Lemor, Chairman and CEO said.