Dutch wholesaler Sligro Food Group has admitted its concern over the prospects for its food retail business after a year in which its foodservice operations shone.
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The company booked a 19.5% rise in net profit to EUR74.2m (US$109.2m) for 2007. Sales jumped 24.4% to EUR2.1bn, thanks in part in acquisitions. Sales rose 5.6% on an organic basis.
Earnings from its food retail business dipped, while its foodservice thrived after the acquisition of Inversco in 2006.
Looking ahead, Sligro said market conditions would be “relatively favourable”, although food price inflation might lead to “some disturbance”.
“The aspect of greatest uncertainty for us in 2008 will be the development of the results of our food retail activities,” Sligro warned.
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By GlobalData“We are seeking to achieve further increases in sales and margins in that business, while also reducing our costs further, and that all needs to happen at the same time.”
The company added: “We are more certain about the foodservice results. These activities are excellently positioned and various investments made in previous years can still generate additional benefits. We believe that foodservice will continue the upward trend in its results in 2008.”
