Norwegian food group Rieber & Søn has posted a drop in full-year profits, hurt by a one-off cost related to job cuts during the year.

Rieber & Søn booked a 42.2% drop in operating profit for 2011 to NOK266m (US$45.6m), the group reported today (2 February). The drop was due to a one-off cost of NOK11m related to cuts among sales and admin staff in western Europe and Poland during the year. Full-year EPS slid by 47% to NOK2.08.

Earnings were also affected by lower revenue, which fell 5.7% to NOK4.29bn.

For the fourth quarter, operating profit amounted to NOK66m, a 55.7% decline on the prior-year period. EPS slid by 59% to NOK0.54, while sales dropped by 5.1% to NOK1.11bn.

Rieber said the board will ask the AGM to approve a dividend of NOK1.50 per share, corresponding to dividend cover of 72%, compared to 51% last year.

This morning, the group also named supply chain director Frank Mohn as its new CEO. He replaces Patrik Andersson, who announced his decision to leave the role in November.

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By GlobalData

Rieber & Son’s share price climbed by 2.34% to NOK39.40 at 12:16 GMT today.