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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By GlobalDataMeanwhile, archrival El Pozo said it will invest EUR185m to expand its business in Spain and abroad by 2011. El Pozo did not specify where it will expand but said the European market was a priority.
