• Net profit, EBIT down on restructuring charges
  • Company says revamp will lower annual costs
  • Sales increase

Norwegian food group Rieber & Søn has reported mixed first-quarter results, with restructuring costs hitting its net and operating profit but EBITDA increasing.

The company booked net profit of NOK19m for the first three months of the year, down from NOK27m a year earlier.

EBIT dropped 31% to NOK31m as Rieber & Søn filed NOK17m in costs linked to job cuts in western Europe.

The company insisted the restructuring would lower its cost base by around NOK60m.

Rieber & Son's EBITDA, before depreciation and the restructuring charges, increased from NOK93m to NOK96m.

Meanwhile, sales rose by 3.1% to NOK1.05bn. Organic growth totalled 3.8% while "structural effects" added 1.3 percentage points to the total. Currency exchange lowered growth by two percentage points.

Looking ahead, Rieber & Søn said that it will focus on driving top-line growth and continued efficiency gains. The firm said that it will have a "more aggressive" product launch programme, with "products and concepts stretching beyond the traditional core areas" and a quicker product development process. 

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