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Ter Beke Faces Up To Hard Times

05 September 2011

BELGIUM - In the first half of 2011, the total group turnover for Belgian meat and food processor Ter Beke increased by 0.6 per cent from €197.4 million to €198.5 million.

 

In the ready meals division, the turnover increased by €4.1 million (+6.7 per cent). The company said that this increase is mainly due to a strong volume increase in lasagne and other pasta meals.

In the processed meats division, the turnover fell by €3.0 million (-2.2 per cent) with stable total volumes. The turnover decrease is mainly due to a changed product-mix, whereby sales volumes of cheaper products go up to the detriment of sales volumes of more expensive products.

EBITDA fell by €3.2 million (-16.5 per cent) going from €19.6 million in 2010 to €16.4 million in 2011. This decrease compared to the same period of 2010 is mainly due to the rise in raw material prices.

The group said it has been facing strong increases of the price of important raw materials as of the second half of 2010. As the group primarily enters into longer term contracts with its major retail customers, there is an inevitable delay in charging these price increases on in the sales prices.

"This negatively influences the evolution of the results in the first semester of 2011 but this situation should normalise over the long run.

"Ter Beke is to further invest in the quality of its produce, in innovation and in the support of its Come a casa® brand in Belgium. The brand investments gave rise to a continued strong increase in sales in 2011 in all channels," the company said.

"It is clear that we live difficult economic times. This is reflected amongst others in the rise of raw material prices, a strong rise in energy costs, and more prudent consumer behaviour. Competition between the various players in the market increased, both on the supplier side as on the customer side."

 

TheMeatSite News Desk



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