Belgian frozen food group PinguinLutosa has blamed high raw material prices on its disappointing first half results.
The company said yesterday (18 August) that net losses widened to EUR12m (US$17.1m) over the half ended 30 June 2011, against an EUR6.3m net loss in the same period of the previous year.
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This fall came despite relatively stable sales of EUR228.1m, compared to EUR228.4m for the six months to 30 June 2010.
EBITDA was also hit hard, with the company reporting a loss of EUR7.2m, down from a EUR2.4m profit in the same period in 2010.
Despite a difficult first half of the year, PinguinLutosa remains positive about the rest of 2011.
A spokesperson said: “Traditionally, the second half of the year is more important than the first half. This seasonality is strengthened by a favourable change in the market conditions.
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By GlobalData“In the deep-frozen vegetable division, the proposed increases in sales prices for the new season could be largely realised.”
The company’s share price fell on the back of the news, down 6.43% to EUR8m a share at 10am today.
