Pauli has provided his comments on how Apetit is trimming its less profitable operations.
Apetit announced on Thursday that it is considering closing its frozen pizza factory in Pudasjärvi and exploring alternative models, such as contract manufacturing, for the production of frozen pizzas. We consider the winding down of low-profitability production to be a likely sensible move, as Apetit’s market share in frozen pizzas is low and the prerequisites for competitiveness are therefore weak. Discontinuing the business could have a decreasing impact on the company’s revenue but, on the other hand, a strengthening effect on profitability. At the same time, trimming operations would support investment capacity in growth areas at the core of the strategy. Furthermore, Sucros, an associate company 20% owned by Apetit, is also planning to discontinue cube and icing sugar production, among other things, to improve profitability.