Higher commodity costs have weighed on half-year profits at Spain-based processed meats maker Campofrio Food Group.
The company said on Friday (29 July) that its first-half net income slumped from EUR10.7m (US$15.2m) in 2010 to EUR3.5m in the first six months of 2011. Campofrio’s EBITDA fell 12% to EUR64m.
Go deeper with GlobalData
The group pointed to a 13% increase in raw material costs in the second quarter of the year. However, Campofrio said it had worked to offset the rise in costs through a series of actions.
“During the first half of 2011, the company implemented actions, including pricing, mix management and productivity programs, the benefits of which will only be visible in the second half of the year,” the company said.
Campofrio did see its first-half sales rise. The company said its consolidated net sales climbed 8.7% to EUR939m. Volumes increased 5%.
The group added that Cesare Fiorucci, the Italian deli meat processor it acquired in April, added EUR61m to the company’s net sales.
