Dutch food group Wessanen today (28 April) posted a first-quarter profit – against a loss over the first three months of 2010 – on the back of higher margins and increased sales.

Wessanen, which owns brands including Kallo and Bjorg, reported net profit of EUR4.5m for the three months to the end of March. In the first quarter of 2010, Wessanen made a net loss of EUR4.8m as finance costs hit the bottom line.

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The company’s EBIT margin stood at 4.5% in the first quarter of 2011, compared to 3.7% a year ago. EBIT from continuing operations rose 26.6% to EUR8.1m.

Revenue from continuing operations climbed 3.6% to EUR178.8m. On an organic basis, excluding foreign exchange, M&A and extra trading days, revenue was up 0.2%.

CEO Piet Hien Merckens said the results “reinforced” his belief that Wessanen had started 2011 as a “stronger, more focused organic food company”.

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In the last two years, Wessanen has repositioned its business to focus on Europe’s organic food sector, with a series of disposals, most notably the bulk of its businesses in the US. Wessanen plans to sell its last US unit – soft-drinks firm ABC – this year.

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Merckens said: “Our grocery brands Bjorg, Kallo, Whole Earth and Zonnatura continued to gain market share. Our central sourcing efforts are also starting to pay off, contributing to offset increased raw material costs, and – where needed – we were in general successful in raising prices.”

However, the Wessanen chief said the company still needs to improve in some areas and he pinpointed its business with health food stores.

“The plans are in place and actions are taken, like the start of nationwide distribution capability of fresh products in the Netherlands,” Merckens said.

During the first quarter, Wessanen also decided to stop selling its brands direct to grocery stores in Belgium.

A spokesman said that part of Wessanen’s business had been “loss-making”. He said Wessanen could continue selling brands like Bjorg in Belgium via wholesalers or direct from its operations in France.

Wessanen’s supplies to health food stores in Belgium, the spokesperson added, would be unchanged.