A GLOBAL REALITY

The Ferrero Group approved the Consolidated Financial Statements as of and for the year ended August 31, 2016 with a turnover of 10.3 billion Euro.

Ferrero International S.A., parent company of the Ferrero Group, approved the Consolidated Financial Statements of the Group as of and for the year ended August 31, 2016. At that date, the Group was consolidating 86 subsidiaries worldwide, with 22 operating manufacturing plants, of which three operating within the framework of the Michele Ferrero Entrepreneurial Project. The Group’s products are present directly or through authorised distributors in over 170 countries. Besides the global uncertainties and the industry challenges and trends, the 2015/2016 financial year was an outstanding year for the Group, which was able to achieve significant growth and expansion worldwide. In fact, the Ferrero Group generated an important increase in sales, whilst continuing to boost investment in its brands and maintaining a high level of operating income as well as strengthening internal R&D activities.

The Group, of which Mr. Giovanni Ferrero is the Chief Executive Officer, closed the financial year with a consolidated turnover of 10.3 billion Euro, with an increase of +8.2% compared to the previous year, which reported a consolidated turnover of 9.5 billion Euro.
The sales of finished products increased in the main European markets such as Germany, Poland, Spain and France, while Italy's sales remained flat. Turkey also obtained a significant increase in Net Sales compared with the previous year. Within the American countries, the USA and Mexico recorded the higher increase in net sales. India also experienced the positive trend of last year.

GOOD PRODUCTS, GOOD RESULTS

The products that led the growth in net sales of finished products were mainly Nutella, Rocher, Kinder Surprise, Kinder Joy, Kinder Bueno and Tic Tac.
The Group's average workforce in 2015/2016 was 29,206, increasing from 25,784 employees in 2014/2015, mainly due to the impact of the first full consolidation of Thorntons. The headcount as of August 31, 2016 amounted to 32,990 employees.

As of 31 August 2016, the headcount of Ferrero employees amounted to 32,990.


IMPROVEMENT AND GROWTH

The Group continued also this year to invest in improving and expanding its factories, plants and equipment in line with its entrepreneurial and social commitments and in constant application of its corporate strategies. Key corporate strategies led to ongoing improvements in the quality and competitiveness of our products, while paying close attention to product freshness, food safety and the environment, which the Ferrero Group is highly committed to.

The Group sustained its strategy of technological development through the expansion of its production capacity, with total capital investments amounting to 631 million Euro (compared to 646 million Euro in the prior year). On the total amount of capital investments, the most significant part was focused on industrial and manufacturing investments (552 million Euro or 5.3% of net sales, compared to 557 million Euro in the previous year, or 5.8% of the corresponding net sales) mainly in Italy, Germany, Poland, China and India.