Health food maker Wessanen reported higher earnings this morning (25 October), as an increase in branded sales strengthened operating margins.
The Netherlands-based company said that EBIT rose 17.4% in the first nine months of the year, climbing to EUR33m (US$35.9m) versus EUR28.1m in the year-ago period. Post-tax profit from continuing operations rose 28%. However, including last year’s contribution from discontinued operations, net profit increased at the slower pace of 0.5%, rising to EUR22.3m.
Sales at Wessanen were lifted by the contribution from recent acquisitions – such as Piramide, Inebio and Mrs Crimble’s – as well as strong branded growth. Total revenue rose 8.8% to EUR424.3m in the year-to-date. Like-for-like sales increased 7%. The company said this was achieved “despite an accelerated decline of private-label business in Q3” as autonomous branded sales were up 9.3% in the nine months.
“We are on track to deliver a good 2016 result both in terms of growth and profit as we are further strengthening our brands in a growing market for healthier and more sustainable food,” CEO Christophe Barnouin said.