French charcuterie-to-foodservice group Fleury Michon has forecast that profits could tumble 10% this year thanks to rising commodity costs.

The company has predicted an 8% rise in sales but warned that raw material costs could hit its bottom line this year.

The warning came as the group posted an 8% increase in net profit for 2007. Earnings reached EUR13.1m (US$20.9m), as revenue climbed 8.8% to EUR492m.

Higher sales countered a below-target performance at Delta Dailyfood Canada. The subsidiary was hit by higher raw material costs and an unfavourable exchange rate between the US and Canadian dollars.