Fleury Michon French sales fall

Fleury Michon French sales fall

French food group Fleury Michon has seen its sales decelerate throughout the year, with sales to French supermarkets remaining pressured. 

Delivering its third-quarter sales update, the group said revenue dropped 2.6% to EUR188.1m (US$204.7m). The company said the result should be understood "in the context of the strong development of sales" seen in the comparable period of last year. 

Fleury Michon's sales have slowed as the year has progressed, with declines in the second and third quarters offsetting growth at the start of the year. For the nine months as a whole, Fleury Michon revenue dropped 1.3% to EUR560.1m. 

The company flagged ongoing issues at its domestic business, which accounts for 85% of its sales. The French cooked meat manufacturer said an ongoing price war and increased raw material costs led "repositioning work" that delayed the introduction of product innovations. The company has also moved to rationalise promotional activity in this context. 

When Fleury Michon reported its full first-half results last month, the company revealed price pressure and higher input costs have squeezed its operating profit. Operating income fell 13.6% to EUR13.3m, the company said. However, lower tax rates in the six month period supported net profit, which rose to EUR8.9m for the six months to the end of June, up from the EUR8.2m.