SPAIN: Inflation, investment hits Campofrio 9M profits
- Net profit slumps 59.3m
- EBITDA drops 9.6%
- Net sales up 5.7%
Campofrio said its strategic plan is not positively impacting the bottom line of the P&L yet
Spanish food group Campofrio said cost inflation hit earnings in the first nine months of the year.
Net profit in the period to the end of September slumped 59.3% to EUR4.7m (US$5.9m), the company reported today (7 November). EBITDA amounted to EUR105.4m, a 9.6% drop on the prior year. Campofrio cited higher energy and raw material costs.
The company has also been investing in marketing and NPD as it focuses on developing and selling healthier products, snacking lines and items with "heritage".
The strategy helped Campofrio's sales, which climbed 5.7% to EUR1.39bn. Campofrio also pointed to the impact of Fiorucci, the Italian group it acquired in April last year.
"The initial results of our investment programme are very encouraging," said CEO Robert Sharpe. "The sales performance of this first nine months of the year is remarkable. Nevertheless, the strategic plan is not positively impacting the bottom line of the P&L yet. This is due to inflation and the lag in the benefits achieved relative to the investments that drive them.
"We are confident about achieving, growth and productivity and expect both of these value drivers to accelerate over time as the strategic plan is deployed."
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Spanish meat group Campofrio returned to profitability in 2012, as sales gains and lower one-off costs boosted the bottom line....
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