Spanish food group Campofrio has reported a 46% fall in 2003 net profit to €12.0m (US$15.0m), due partly to restructuring costs.

The company said sales fell 23.7% to €1.08bn as it divested several subsidiaries and shifted focus to its processed food operations. Campofrio said its results were also hit by foreign exchange rates due to the strength of the euro against other foreign currencies, including the Polish zloty.

However the company said it had managed to significantly improve its margins due to the success of its innovation programmes, industrial improvements and new products, reported Reuters.