Aquila aims to double EBITDA in 5 years through organic evolution and acquisitions

Aquila aims to double EBITDA in the next five years, both through organic growth, as well as the acquisition of companies with a high level of the indicator, the company officials announced at the Wood & Company Frontier Investor Days Conference.

“We have a history of consistent growth in business, with an average annual revenue growth rate of 26% over the last 3 years. In addition, we see an increase in EBITDA of 2.6 times in 2021, compared to 2018, both through organic evolution and through acquisitions. Doubling EBITDA over the next 5 years is an essential objective of our strategy, as we aim to further grow and optimize our business, both through organic growth and through acquisitions – there, the EBITDA target is higher than our current average. Improving margins is one of the important directions in our strategy, along with organic growth and through acquisitions, while keeping the focus on developing our own brands. We are actively focusing on maximizing exposure in channels with higher growth rates, with better margins, such as HoReCa and Gas Station,” says Jean Dumitrescu, Investor Relations Director, Aquila.

The company’s representatives consider the acquisition of leading brand manufacturers in the segment in which it operates, complementary to the current portfolio of products sold, and analyse possible synergies across the distribution chain.

Balance between own brands and the sale of established brands

As for our existing brands in our portfolio, such as Gradena or LaMasa, we focus on increasing the product range and presence in store shelves and in HoReCa.

“We are looking to keep a constant balance between price and volume increases, respectively to focus on the accessibility of our products for customers, especially in the current context of price evolution, at a global level,” Dumitrescu adds.

The products sold by Aquila represent established brands, from different categories: Personal care products - Rexona, Dove; Sweets - Kinder, Raffaello, Snickers or Mars; Coffee – Lavazza; cleaning products – Dero, CIF or Coccolino; or pet food – Whiskas or Pedigree.

Focus on digitalization and automation

Currently, Aquila systems are migrating to Microsoft dynamics 365, based on previous positive experiences with Microsoft ERP solutions, the possibilities of customizing business-specific solutions, and connecting with other specialized software.

Logistics activities are also planned and monitored with the help of specialized management software – warehouse Management System, which allows for continuous efficiencies and improvements in input, storage and order preparation flows, as well as value-added services such as promotional packaging or labelling.

The company also uses innovative solutions, such as the Pick-by-light system – colour-based order preparation, which have enabled productivity optimization and which will be extended, in the short and medium term, to other warehouses with high volumes.

Aquila announced its new targets at the wood & Company frontier investor days conference. The development of own brands is one of the strategic directions of development announced by the company, along with the M&A area, organic growth and optimization of operations, with an increased focus on the digitalization component.