:. Food Industry News

Categories: Corporate Results

Zetar H1 Profit Falls; to Sell Loss-making Unit

Source: Reuters
20/01/2009

Jan 20 - Confectionery and snack foods group Zetar Plc on Tuesday posted a 73 percent fall in first-half pretax profit amid falling consumer spending and higher input costs, and said it would sell a loss-making unit to focus on core business.

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The company also said its Finance Director Dale Mullins would resign on March 8 by mutual consent and Chief Executive Ian Blackburn would assume the additional role.

Loss of Woolworths Plc as a customer due to administration post first half and related bad debt provisions are expected to hurt the company's full-year results, it said.

Zetar had annual business worth 3.5 million pounds ($4.94 million) with Woolworths and the retailer owed 970,000 pounds to it.

Zetar reported a pretax profit of 454,000 pounds for the six months to Oct. 31, down from 1.7 million pounds a year earlier. However, sales rose 15 percent to 55.2 million pounds.

Zetar will dispose of its Baked Snacks unit which made a loss in the first quarter and an expected improvement in trading in the second quarter did not materialise in the anticipated time frame.

Zetar shares were indicated down 13 percent at 135 pence at 0833 GMT. ($1=.6900 Pound)



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