Nortura, the Norway-based meat products group, has reported a decline in profitability for the four months to the end of August, hit by "challenging" conditions in the poultry sector.
The company, which as a co-operative reports results in three four-month periods rather than quarters, booked net income of NOK80m (US$9.6m), versus NOK110m the previous year.
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EBIT was NOK117m, down from NOK148m in the corresponding period a year ago. Nortura's EBITDA stood at EUR304m, compared to EUR312m a year earlier.
The fall in earnings came despite higher sales. Nortura reported a 3.1% increase in revenue to NOK7.24bn thanks to its Prima Broilers business.
However, Nortura said "adverse changes" in production and sales volumes led to the weakening profitability. Gross margins fell 1.6 percentage points.
The co-op also pointed to the merger between retail customers Coop and ICA, which a spokesperson said had seen the supplier lose market share.
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By GlobalDataFor the first eight months of Nortura's financial year, the co-op has generated a loss of NOK35m, compared to NOK19m a year ago. EBIT has fallen by almost two-thirds, from NOK94m to NOK33m. EBITDA was 3.1% lower at NOK407m.
Revenue rose 2.2% to NOK13.26bn.
