30 April 2008 - Bongrain SA's Q1 posted an 11.7% rise in first quarter turnover, up from 791.2 million euros to 899.1 million euros.
For the group’s cheese operations, the first quarter was marked by a price increase aimed at absorbing raw material price rises. Some of Bongrain’s markets may see a slow down in demand as a result. Other dairy operations maintained their progression despite a strong euro.
Bongrain’s results do not take into account Bongrain Gastronomie, sold on October 31 2007, or Bongrain’s veal operations, the divestment of which is scheduled for 2008. The 2007 turnover figure was adapted accordingly in order to allow for meaningful comparison.
The first quarter of 2008 saw sustained milk price rises internationally, whilst global prices for processed dairy products have already started to fall significantly. This ‘scissor effect’ is expected to impact on Bongrain’s operational margins and to limit the progression of the group’s dairy operations’ turnover. The situation should start to improve from the second quarter onwards.
Investments have proceeded at a normal pace and the group’s overall financial situation remains very satisfactory, Bongrain said in a statement.