•  Net profit rises to ER15.7m
  •  Sales gain 5%
  •  EBITDA drops on high meat prices

Spanish meat group Campofrio returned to profitability in 2012, as sales gains and lower one-off costs boosted the bottom line.

Campofrio said today (1 March) that net profit totalled EUR15.7m (US$20.3m) in the 12 months to end-December. This represents a significant improvement from 2011's loss of EUR54.2m, when profits were hit by an "exceptional net provision" of EUR88.3m mainly linked to its planned investment programme.

Sales were up 5% during the period, boosted by Campofrio's brand building investment. The company has also expanded "health" "snacking" and "heritage" platforms through a focus on innovation and product development.

However, operational profitability came under pressure from high meat prices during the year and EBITDA slipped to EUR150.5m from EUR169.4m in 2011.

"In a year characterised by the sharp increase in the cost of raw materials, meat prices reached new record highs. This strong inflationary pressure was partially offset by productivity improvements resulting from centralising and streamlining the process of purchasing meat and other raw materials," Campofrio said.