European frozen food manufacturer Iglo Group has decided to stop selling products in three countries – Romania, Slovakia and Turkey.
Iglo said the frozen category “small in terms of the overall grocery market” in each country and added: “Sales to these three countries are considered immaterial to the group and so are not expected to have a significant impact on the overall financial performance of the group.”
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The move is part of Iglo’s review of its geographical footprint, which the company has now concluded, it said yesterday (27 November) while providing a snapshot of its financial performance in the third quarter.
The statement also revealed a EUR9.9m (US$12.3m) charge from restructuring costs, mainly at its factories in Germany.
Iglo, owned by private-equity firm Permira, said the restructuring was part of an “ongoing programme to create further operational efficiencies”.
A spokesperson said: “We have initiated voluntary early retirement and redundancy programmes at Reken and a voluntary retirement programme at Bremerhaven which we believe will secure the factories’ futures and jobs long-term.”
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By GlobalDataThe third-quarter financial figures did not include net profit nor detailed numbers for EBITDA and sales.
However, the Birds Eye owner said its EBITDA rose 9.7% year-on-year and was up 6.1% on a constant-currency basis.
Reported net sales increased 2.7% but were flat when foreign exchange was excluded from the results. It said the frozen food category declined 0.4%.
“Tough market conditions continue to impact the sector with consumer spending under pressure across all European markets. This has resulted in the defined frozen category declining by 0.4% in the third quarter. Against this background, Iglo has delivered value share growth in 8 out of 11 markets,” chief executive Elio Leoni Sceti said.
