Ciccolella 2010 group results
With a yearly turnover of € 350 M., Ciccolella Holding International is the second largest business partner of the Dutch growers and co-leader in the European market. The parent company Ciccolella S.p.A. , which is quoted on the Milan stock exchange, reported solid positive results in 2010, thus creating the conditions to invest for further profitable growth and for stronger relationships with producers, auctions and customers.
Results generated in 2010 by our Group show a substantial improvement of all the economic performance indicators; these improvements are particularly meaningful taking into account the very difficult economic and financial context in which our units have operated. (click here for a summary of the financial results 2010)
Development of revenues
Revenues have been substantially stable; The increase of the revenues coming from the energy activities have compensated the decrease of the commercial turnover that was due to the need to reduce credit risk. The main reason of the profit improvements is the cost reduction that has been achieved both in the commercial and in the production units.
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Claudio Rustioni, Managing director Ciccolella Holding International
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The cost reduction plans have allowed to offset the negative effect of the turnover and margin reduction of the Wholesale channel, that was partly due to the strategic choice to reduce our exposure with non-profitable and non-reliable customers. On the contrary, the performance 2010 with retail customers has shown a strong growth compared with previous year.
Strategic focus
We formulated our strategy for the period 2011-2014 in an ‘Industrial Plan’. It is built around the following strategic lines:
- Further development of the trading activities and increase of their competitiveness through innovation, capability to improve our offer to Customer and Consumers, development of new brand concepts, leverage on the market of the value of our eco-sustainable production;
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Investments on the integration between the production activities and the utilization of renewable energy, with the development of new photovoltaic plants on the greenhouses of Molfetta and Melfi, in addition to the already active cogenerative plant of Candela;
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Improvement of the technological structures of the production sites and introduction of new coltures;
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Search for the operational excellence to further improve the effectiveness and the efficiency of all the production and trading operational activities and structures.
The implementation of this strategy will allow a further improvement of our results and will definitively position our company as one of the most innovative realities in the floricultural industry, becoming a real point of reference for people growth and talents attraction.
Entrepreneurship as competitive advantage
Our main competitive advantage is that we are a company driven by entrepreneurial spirit and innovation. We anticipate market changes by:
- Designing and offering innovative concepts and solutions that satisfy the functional and emotional needs of final customers
- Involving producers in the development of new concepts, creating synergy and advantages among the various links in the value chain, on a national as well as on a international level. We are willing to share our know-how with our partners to achieve mutual benefits.
- Developing talents: providing the possibility for personal growth. We want to be a company where people enjoy working. People development and knowledge management is key to our success.
- Promoting the entrepreneurial initiative of our team in a fast and aligned organization with a winning spirit.
Development of our market position
Our market position is evolving as follows:
- Strong growth in the retail segment, with service merchandising as the cutting edge service offering.
- Build up the position in Do It Yourself chains and garden centers.
- Maintaining a healthy growth in the wholesale segment.
- Be the leader in eco sustainable products by using the unique production facilities of the Italian mother company.
Green vision
Being the largest grower in Europe for roses and the worlds largest grower for Anthurium, we have a leading role in finding new sustainable techniques. Ciccolella invests in advanced energy saving technologies. The investments in green energy provides unique selling points and competitive advantages.
With commitment and care for the environment we embody an eco-sustainable production stream. This is carried out through a co-generation system, obtained thanks to an agreement with Edison, and a non-soil closed-cycle hydroponic system on perlite substratum with the recovery and re-utilization of drainage waters. The cooperation with Edison led to a whole new production process focusing on sustainable growth of cut flowers like Roses and Anthurium.
Innovations in products and process
Our success relies on the capability to integrate companies and generate synergies, to improve processes, to develop profitable business and to launch new innovative products.
The innovative power of the company is present in the following fields:
- Strengthening the link with the end customer by marketing and service merchandising concepts;
- Highly efficient production techniques for making bouquets.
- Integration of operations functions, staff units and purchase in order to realise synergies in combination with operational excellence.
- The Green Energy concept using both CO2 and residual heat from nearby power plants in the production of flowers and plants;
- Strong social responsibility, creating jobs in economically weak regions.
- Marketing of green products, thus providing environmentally friendly solutions to increase ecologic awareness among customers.
Claudio Rustioni
Managing director Ciccolella Holding International B.V.