Higher raw material costs in 2011 hit annual profits at Groupe Bel, the company behind brands including Boursin and The Laughing Cow has revealed.
France-based Bel reported a 17.4% fall in net profit to EUR96m (US$128m), pointing to an “across-the board” increase in input costs. Operating income was down 12.5% at EUR170m.
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The increase in raw material prices offset improved sales at Bel, which saw turnover rise 4.5% to EUR2.53bn.
Bel said volumes, as well as revenues, increased, although it did not specify by how much volumes had grown.
By region, Bel’s performance was patchy, with the company only seeing sales and profits rise from its Americas and Asia-Pacific division, which operates as one unit.
Sales in western Europe increased by over 6% but operating income in the region fell by more than 9%.
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By GlobalDataBel’s sales in Eastern Europe slid 11.5% and its losses more than doubled to an operating loss of EUR27m.
The company said “geopolitical instability” affected its results in some markets, with sales and profits from Bel’s “near and Middle East” unit falling. Its sales in Greater Africa increased, although earnings there almost halved.
Bel did not provide any specific earnings forecast and reflected on the factors that could affect the business in 2012.
“The economic environment at the start of 2012 remains under pressure in some group territories in the Near and Middle East region, with continued economic uncertainties in Europe and no sure signs of easing raw material prices,” it said. “Despite these uncertainties, the group — backed by a healthy balance sheet, the commitment of its employees and a growing international presence — will enhance its drive for creativity and innovation to sustainably and profitably improve its positions in the world cheese market.”
