Spanish own-label supplier Grupo Siro has reported flat annual profits despite an increase in turnover.
Grupo Siro, which supplies products including pasta and biscuits, booked net profit of EUR14m (US$18.1m) for 2012, level with a year earlier. EBITDA was EUR81m in both years.
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The company said profits “plateaued” as a result of higher raw material costs, a change in the mix of products sold and an increase in its tax bill. All were enough to offset an 11.2% gain in sales to EUR544m.
Over 80% of Grupo Siro’s sales comes from contracts with Spanish retail giant Mercadona. However, the company said it has set up a dedicated international arm, Siro Foods, to boost its international business. Last year, it secured contracts with US retailers H-E-B and Meijer, as well as Portuguese retailer Sonae.
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