Spanish food group Sos has posted a 52% plunge in net profitsfor the first nine months, which fell to EUR11.2m (US$14.35) despite increased revenues due to rising raw-material costs.

Revenues increased 22% to EUR1.05bn amid healthy sales of its olive oil, rice and cookie brands.

The Madrid-based company said soaring olive oil and feedstock prices undermined profits in the two mainstay categories. However, the company said that its cookie division, which makes the leading Cuetara brand, performed well.

Sos’ flagging earnings come after it forecast profits and revenues would increase in 2006, helping it bounce back from a 73% profit decline in 2005.

Meanwhile, Sos announced that it plans to make another “non oil” acquisition this year to further its aim of becoming “the largest food company in Spain,” Chairman Jesus Salazar told Spanish media.

Shares in Sos, which has made a string of recent acquisitions in the global olive oil and rice market, have risen 16% recently, prompting speculation that it has become a takeover target.