Net sales for the semester have grown by 8.5% on a like for like basis. In line with our previous forecasts, our current operating profit has suffered from the all-round increase in raw material and energy costs not entirely compensated for by increased sales prices.
As an aggravating factor, the price of milk increased at the same time as there was a steep drop in the market prices for dairy by-products. The economic environment has also adversely affected food consumption in certain markets including France.
The Group’s accounts for the first half of 2007 have been restated to reflect the sale of our gastronomy operation in 2007 and the decision to discontinue our calf-breeding operation in 2008.
The main change in consolidation scope was related to CF&R which company is subject to 50% proportional consolidation.
Outlook for 2008 as a whole
The dairy and overall economic environments have been particularly difficult ones during the 1st half of 2008. The second half should be less penalizing for the Group as greater alignment is expected between the increased price for milk and the fall in world prices for by-products.
The Group remains very attentive to the trend in food consumption which in turn remains strongly influenced by the current economic situation. Bongrain SA will continue to pursue its plans for improving competitiveness and to implement its strategies of product innovation and brand development.
|
(In millions of euros) |
June 30, 2008 |
June 30, 2007 restated |
Change
|
|
Net sales
Current operating profit
Operating profit
Net profit from continuing operations
Net loss for discontinued operations
Group share of net profit
Net debt / Equity (%) |
1,763.4
37.4
35.0
22.8
-1,0
22.6
39.6 |
1,605.5
82.1
81,7
74.1
- 4.0
65.1
41.9 |
+ 9.8%
- 54.5%
- 57.2%
- 69.3%
- 65.3%
|