R&R Ice Cream posts first-quarter fall in sales
R&R Ice Cream described "slow market conditions" in UK
R&R Ice Cream has reported a fall in underlying first-quarter sales, with the UK-based business pointing to a sluggish domestic market and its exit from less profitable contracts in Germany.
The company reported consolidated revenue of EUR167m (US$186m) for the three months to the end of March, a fall of 1.3% on the same period last year.
R&R Ice Cream said its top line had been affected by the falling value of sterling and the Australian dollar against the euro, the company's reporting currency.
At constant exchange rates, R&R Ice Cream said its like-for-like sales fell EUR5.9m.
The UK showed a decline of EUR2.2m, on revenue of EUR53.1m, "as slow market conditions and timing of promotions affected the start of the season", R&R Ice Cream said.
However, the company's adjusted EBITDA was EUR32.5m compared to EUR29m in the first quarter of 2015.
R&R Ice Cream said its "results from operating activities" was EUR18.6m, versus EUR17m a year earlier.
It posted a net profit of EUR2.8m, compared to a loss of EUR13.7m the previous year. Last year's first quarter included "exceptional items, amortisation and non-cash interest" of EUR23.8m. The results for this year's first quarter included exceptional items, amortisation and non-cash interest of EUR10.7m.
R&R Ice Cream, which is owned by private-equity firm PAI Partners, manufactures branded and retailer private-label ice cream and operates in Europe, South Africa and Australia. It also has licensing deals with companies including Mondelez International and Nestle.
PAI Partners has owned R&R Ice Cream since 2013 after buying the business from private-equity peer Oaktree Capital Management.
The deal will see R&R Ice Cream combined with much of Nestle's ice cream operations. PAI Partners and Nestle will have equal equity stakes in Froneri.
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