Groupe Bel, the French cheese-maker behind brands including Boursin and The Laughing Cow, has posted a 58% jump in annual profits despite a stagnant top line in 2009.
The company posted operating profit of EUR149m (US$201m), compared to EUR95m in 2008, even as sales dipped 0.4% on an organic basis.
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“The advance in 2009 earnings stemmed from active measures implemented since 2008 to cut fixed costs and the success of positioning the company’s business activity more equally across various markets,” Bel said on Friday (26 March).
Sales of Bel’s flagship cheese products partially offset a decline in revenues at the company’s industrial products business.
Bel said 2009 sales edged up by 0.2%, rising to EUR2.22bn. However, organic sales fell by 0.4%.
The company admitted it expects “market conditions to remain difficult in 2010” and declined to publish specific sales or earnings targets.
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By GlobalData“The group believes the economic recovery — if confirmed — will be weak in developed countries, where consumer spending is suffering from high unemployment. In response, a policy of sustained promotional offers will be needed,” Bel said.
“Against this backdrop and new pressure on raw material prices observed at the end of 2009, the group will continue its efforts to tightly control fixed costs and to closely monitor resource allocation.”
