BELGIUM: Costs to hit Ter Beke 2012 profits
- Does not expect 2012 result to exceed last year
- Costs offset increased volumes, price hikes
Ter Beke said 2012 results will not exceed the 2011 result
Belgium-based Ter Beke has said it does not expect its 2012 results to exceed that of last year, as a result of increasing production costs.
In a trading update, the company said increased volumes, price increases and "a far-reaching cost control" were not able to entirely offset increasing production costs. These included raw materials, energy and wages, in addition to the costs of market investments and the effect of the changed product mix.
"Hence, the group expects that the 2012 result will not exceed the 2011 result," it said.
Despite this, the company said it increased sales in the third quarter. In ready meals, sales growth was realised mainly through volume growth in lasagne and increasing sales under the Come a Casa brand in Belgium.
In September, the group also launched a whole-wheat chilled lasagne. Turnover also increase in the firm's processed meats division.
THIRD QUARTER 2012 Ter Beke continued its first semester turnover increase in the third quarter of 2012. In ready meals, the turnover growth was realised mainly through volume growth in lasagne and increasing sales under the Come a casa ® brand in Belgium. In September, the group successfully launched a whole-wheat chilled lasagne, and is the first to do so.
In the third quarter, the turnover in the processed meats division increased primarily due to our slicing- and packaging activities.
The increased volumes, the implemented price increases and a far-reaching cost control were not able to entirely offset the increasing production costs (mainly raw materials, energy and wages), the costs of market investments and the effect of the changed product mix.
Hence, the group expects that the 2012 result will not exceed the 2011 result.
Original source: Ter Beke
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