• Q1 net loss thanks to M&A costs
  • EBITDA climbed 3.3%
  • Sales grow 20.5%
Campofrio booked a net loss in the first quarter of the year

Campofrio booked a net loss in the first quarter of the year

The chief executive of Campofrio has pointed to the success of the Spanish meat processor's strategy despite the company reporting a first-quarter loss.

Campofrio booked a net loss in the first quarter of the year, hurt by costs from its acquisition of Italian firm Fiorucci in April last year.

For the three months to the end of March, the company made a net loss of EUR0.6m compared to a net profit of EUR2.8m last year. The company blamed the loss on an increase in interest expense following the Fiorucci acquisition.

However, Campofrio's EBITDA climbed 3.3% to EUR33.9m as its sales increased 20.5% to EUR447.4m.

On a like-for-like basis, revenue growth was 3.1%, driven mainly by a "strong" performance by the group's leading brands and the "rewards reaped from the company's product mix and price optimisation strategies", it said.

Revenues from branded products, excluding Fiorucci, rose by 5% in the quarter.

Campofrio CEO Robert Sharpe said the company's strategy was starting to pay off.

"The company's revenue and earnings performance in the first three months of the year, framed by a still-challenging operating backdrop, highlights the fact that our business strategy, focused on creating value by enhancing the product mix, innovating, continuing to boost productivity and defending our brands, is beginning to deliver solid and profitable growth," Sharpe said. "Fuelled by our investment programme announced in the first quarter of this year, we expect these trends to continue."

Click here to view the full earnings release.