Spanish meats company Campofrio has posted a EUR25.4m (US$30.52) loss for 2005, up 36%, hurt by the sale of its Polish unit and slumping European markets.
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Campofrio, owned 22% by US peer Smithfields, said revenues rose 7.3% to EUR911m. In a statement, the company said it sold Polish subsidiary Morliny for EUR50m to an undisclosed buyer. The unit’s sales were not added to the group’s sales, pressuring the bottom line.
Processed-meat sales in key markets in France and Russia declined during the year, also hurting the bottom line, Campofiro said, adding that exports to the European Union (EU) fell 21%.
Campofrio said its Spanish unit reported a pretax profit of EUR45.7m, despite weak sales and surging raw-material prices.
The news comes as Campofrio is set to build a pig factory in Moscow, Russia, as it continues to grow its business in that market.
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