Rising raw-material costs made a dent in the annual profits of Belgium-based vegetable processor PinguinLutosa in 2010, the company has revealed.

PinguinLutosa, which reported its full-year figures yesterday (22 March), said its net profit for 2010 reached EUR2.8m, down sharply from the EUR10m it recorded in 2009.

The company’s consolidated sales increased by 10.7% to EUR483.6m as sales within both its divisions – deep-frozen vegetables and potatoes – grew.

However, PinguinLutosa’s EBIT more than halved – from EUR15m in 2009 to EUR7.3m in 2010 – amid the rise in raw-material costs. The company, for example, noted that raw-material prices for potatoes were three times higher in December 2010 than a year earlier.

In the last 12 months, PinguinLutosa has struck deals for two acquisitions – the frozen vegetable business of French co-operative CECAB and Belgian canned goods firm Scana Noliko.

The CECAB assets will formally become part of PinguinLutosa’s “consolidation scope” from May. The deal to buy Scana Noliko, announced last week, is expected to be sealed by the end of June.

For the full earnings release from PinguinLutosa, click here.