Bel Group, the maker of Babybel cheese, posted a 14.9% increase in consolidated sales in the first half of its financial year, boosted by the consolidation of the Mont-Blanc Materne (MOM) group into the business, which accounted for 14.1% of the increase.
Bel Group's sales stood at €1.67 billion for the period, compared to €1.45 billion for the same period last year. Organic sales growth was 1.2% higher, however, foreign exchange fluctuations had a 0.4% negative effect.
Operating income during the period was €133 million, a 19.7% decrease on the same period last year, while consolidated net profit was 85 million, a 23.9% decrease.
Sales in its Europe business stood at €908 million for the half year period, while sales in Middle East & Greater Africa were €386 million, and sales in Americas/Asia Pacific were €372 million.
Fierce Competition
'Volume growth in European markets slowed in the first half as a result of fierce competition among food retailers, particularly against a backdrop of a sharp increase in milk and dairy raw material prices,' the group said.
'The region’s sales growth stemmed mainly from higher prices for industrial products, which follow quoted raw material prices. Excluding the impact from changes in the scope of consolidation and the foreign exchange impact, sales in Europe grew 4.4% over the first six months of 2017.'
Second Half
Looking ahead to the rest of coming year, Bel Group said that 'raw material prices, particularly butter fat raw material prices, are expected to rise in the markets. Further, the Group will continue to confront a tough economic environment with little visibility over the trend in its activity.
'Against this backdrop, the Group expects operating margin to be lower in the second half of the year versus the prior year period.'
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
