Earnings from Swedish conglomerate Lantmännen’s food business dipped in the second quarter of 2010 on the back of lower sales from its cereal and bread divisions.
Lantmännen, which also has interests in energy, machinery and agriculture, said adjusted operating income from its “food sector” stood at SEK223m (US$30.7m) for the three months to the end of June – down from SEK224m a year earlier.
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Net sales from the food business fell 5% to SEK3.67bn due in part to foreign exchange and lower sales at Lantmännen Cerealia and Lantmännen Unibake.
The fall in sales at Lantmännen Cerealia, brought on by “fierce price competition for flour” hit operating income from that division.
Excluding costs linked to the closure of a bakery in Glostrup, operating income from Lantmännen Unibake was up thanks to streamlining in production and “a favourable earnings performance” in the UK and the US.
Sales and earnings at poultry business Lantmännen Kronfågel increased as the division lapped last year’s second quarter, when the unit was hit by a glass contamination scandal.
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By GlobalDataLooking at the first six months of 2010, adjusted operating income from Lantmännen’s food sector stood at SEK382m, up from SEK279m a year earlier.
Sales, however, were down from SEK7.61bn in the first half of 2009 to SEK7.24bn.
