Fleury Michon, the French food manufacturer, saw sales rise in the first half of the year but losses grow, with an impairment filed against a business in the US.
The company posted an 8% increase in sales to EUR376.7m (US$444.9m), boosted in part by its acquisition of airline foodservice supplier Marfo Food Group in July 2019. Stripping out that deal, sales were up 4.1%.
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However, the Paris-listed business reported an operating loss of EUR3.5m, which compared to a loss of EUR5.7m a year, but was affected by an impairment charge of more than EUR5m on its Fleury Michon Amérique division.
The impairment of goodwill on Fleury Michon Amérique, a business specialising in airline catering in North America, was EUR5.3m, the group said.
Fleury Michon’s underlying operating income stood at EUR9.4m, compared to a loss of EUR5.3m a year earlier. The company pointed to higher volumes of charcuterie and surimi – a key factor in its improved sales – as well as the “stabilisation” of raw material prices, “better control” of logistics and production expenses and a reduction in fixed costs.
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Nevertheless, Fleury Michon said its profitability was “markedly” impacted by “very low volumes” from the airline catering business and of sales to corporate customers.
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By GlobalDataThe company made a first-half net loss of EUR13.3m, versus EUR8.8m a year ago, citing the impact of tax charges and rising debts.
