French cheese manufacturer Groupe Bel saw sales grow in the first nine months of the year but warned input costs are expected to weigh on profits.
The company said consolidated sales in the first nine months rose to EUR1.05bn (US$1.3bn), up 2.2% on 2013. Excluding the negative impact of currency, Bel’s organic sales advanced 3.8% in the period.
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Gains were driven by higher sales across the majority of the markets in which it operates. Western Europe, Bel’s largest region, saw sales up 3.2% as the group navigated a “competitive” landscape and “lacklustre” economic backdrop through increased sales and marketing efforts. In Bel’s combined Americas and Asia Pacific division, sales rose 1.2%. In Greater Africa revenue increased 8.1%, while in the Middle East sales jumped 15.4%.
The growth more than offset difficulties at the group’s northern and eastern Europe arm, where sales fell 5.5% due to unfavourable currency fluctuations, “operating difficulties” arising from the unrest in Ukraine and a “weakened economic environment” in Germany.
While the company reported top-line gains, Bel sounded a note of caution on the impact rising input prices will have on profitability.
The company said: “Sales growth, selective price increases and efforts to tightly control costs will not be enough to offset the high price of raw materials and the negative impact of foreign exchange variations observed on average over the year.
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By GlobalData“The group will nevertheless continue to follow its aggressive strategy to advance its positions around the world by building on the vitality of its brands and the talent of its teams.”
