French dairy group Bongrain has warned that weak consumer demand means the company has been unable to make financial forecasts for 2009.
Last week, (27 August), the company reported a slump in half-year profits thanks to weak dairy prices and a series of one-off charges.
Bongrain posted a 41.5% slump in net income to EUR13.2m (US$18.9m) for the six months to the end of June. Net sales slid 10.3% to EUR1.58bn.
The group said it had absorbed "higher amounts of negative non-recurring items" during the first half of 2009 than the year before.
Nevertheless, Bongrain insisted its focus on "major brands" had helped the company gain share in "most countries".
However, "imbalances in the dairy economy" and sagging demand for dairy products led Bongrain to warn investors that it could make forecasts for 2009.
"The environment remains marked by imbalances in the dairy economy," Bongrain said. "World prices for industrial products remain at historically low levels. In Europe, the price paid for milk in France is too high compared to the prices experienced in competing countries. In certain markets particularly affected by the economic crisis, the weakness of consumer demand also has an impact on the group."
The group added: "These factors are a source of uncertainty limiting the ability to make reliable forecasts in respect of 2009 as a whole."
Sectors: Commodities & ingredients, Dairy
Companies: Bongrain
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FRANCE: Bongrain unable to issue 2009 forecasts
1 Sep 2009 -
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