German confectioner Halloren has reported higher sales but lower profits for the first quarter of the year thanks to the impact of its investment of Belgian own-label firm Bouchard Daskalidès.
Revenue jumped 23.6% to EUR27.8m (US$37.9m), in part helped by the inclusion of Bouchard into the results.
Halloren announced a deal to buy 50% of Bouchard in December 2012.
However, Halloren booked EBIT of EUR270,000 for the first three months of 2014, down from EUR730,000 a year earlier. The company pointed to the impact of Bouchard on its profitability.
CEO Klaus Lellé said: “Bouchard generates, like most companies in the chocolate industry,” the profits in the second half of the year, especially in the last quarter.”
Halloren still expects sales and operating profit to increase in 2014 versus 2013.