Continued losses in its red meat and pigmeat operations have raised concerns whether meat and poultry group Spira will need further capital injections to bridge the company over until its cost-cutting programme starts paying off.
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Developments in the coming months will be crucial. With an equity base of just SKr127m (US$11.96m), Spira cannot swallow another half-year loss as big as in the first half. Spira reported a SKr104m group loss after net financial items after six months to June, compared with a loss of SKr131m in the year-ago period.
However, company chairman Leif Zetterberg, representing Spira’s major shareholder, the Federation of Swedish Farmers (LRF), was optimistic and said he believed the company would survive without further capital injection. He acknowledged the next months would be decisive.
The entire half-year loss came from Spira’s Samfood beef and pigmeat division, which extended its half-year operating loss to SKr80.3m from SKr64.7m last year.
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