CRIF: Italian food is ready for foreign investors

According to the ratings agency, Italian food industry is strong enough to support investments for growth and attractive for potential foreign capitals
CRIF: Italian food is ready for foreign investors

The Italian food and beverage industry is one of the sectors that has best overcome the impact of the economic crisis, according to a statement released by the ratings agency CRIF (www.crifratings.com).  In particular,  as the report pointed out, it can be noted that between 2007 year and 2015, the nominal added value grew by 4% (compared to a 15% drop for the manufacturing sector), thanks largely to a 58% growth of food exports (+14% for the manufacturing sector). After years of deterioration, margins began to climb in 2014, a trend confirmed in 2015 with an EBITDA margin of 7.2% (6.9% in 2014 and 6.3% in 2013), a level substantially in line with the 7.3% in 2007. Leading the growth in investments have been strong commodities such as wine, pasta and coffee, which account for at least one third of Italy’s foreign exports. Exports in food have grown steadily in recent years, but today is still at 21%.

ITALIAN FOOD INDUSTRY APPEALED DIRECT FOREIGN INVESTMENT – There has also been a reversal of trend, again starting in 2014, for investments, unfortunately modest. The impact of investments on sales increased from 2, 7 per cent in 2013 to 2, 9 per cent in 2015 which is a value still below the pre-crisis period  where it registered a 4, 3 per cent in 2007 year. Otherwise the global rating agency  believes that the Italian food companies consolidation and integration process will support the industrial and financial evolution of operators in home country. But these factors, according to CRIF,will also contribute to improve service quality standards in line with the level of other European countries and to the creation of financially stronger operators able to support  large plans eventually.

Click here to read the complete research (in Italian).

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