French vegetable processor Bonduelle has raised its full-year operating income target range, despite booking a 38.5% drop in first half net profit.
The company, which had predicted “difficult” trading conditions, said that net profit in the six months to end-December fell to EUR15.5m (US$21.4m), down from EUR25.2m last year.
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The group said that profits were hit by “significant non-reoccurring items”, “historically high” stock levels at retailers, cyclical pressure on brand pricing and bad harvests. Operating margin slipped from 6.9% in the first half of fiscal 2010 to 4.5% in the first half of the current fiscal.
Nevertheless, sales for the period were up 16.4 %, boosted 10.5% by the consolidation of sales from the recently acquired France Champignon business and a further 4.3% by currency conversions.
Looking to the remainder of the year, Bonduelle said that it expected operating margin to total “close to” EUR80m, up from its previous forecast of EUR70-75m, driven primarily by the recovery of demand in Eastern Europe and the launch of innovative new products.
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