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Ter Beke Steady Results Despite Horse Meat Scandal

04 September 2013

BELGIUM - Despite the scandal over horse meat contamination of ready meal products earlier in the year, Belgian meat and food processor Ter Beke saw results for the first six months of the year virtually the same as for the same period in 2012.

Consolidated turnover increased in 2013 by € 5.6 million of 2.7 per cent to € 202.6 million.

EBITDA from recurring operating activities came to € 14.4 million in 2013 compared to € 15.8 million in 2012, a drop of 8.9 per cent, primarily because of a drop in turnover in ready meals.

The first half of 2013 2013 contains € 0.9 million non-recurrent costs which included € 0.5 million dismissal costs and € 0.4 million one time costs relating to the horse meat crisis.

Because of the costs, EBITDA was reduced to € 13.6 million a drop of 6.2 per cent.

EBIT came to € 4.5 million compared to € 5.5 million in 2012, a drop of 17 per cent.

Profit after taxes was € 3.0 million compared to € 3.1 million in 2012 a drop of 2.3 per cent.

The company said: "It is at this stage impossible to assess how long the horsemeat crisis will continue to affect consumer confidence. The group is doing its utmost to neutralise its negative impact in the second semester as well.

"Depending on this and save for any other unforeseen market circumstances, the group remains confident that the full year result 2013 can still equal that of 2012."

In the Processed Meats Division, there was an increase in turnover, especially in the Dutch slicing and packaging activities.

However, in the Ready Meals Division there was a fall in turnover and results for sales of lasagna because of the horse meat crisis.

During the year, Dirk Goeminne, permanent representative of NV Fidigo, was appointed as new CEO of the group from 1 June.

This year, the company started construction of a new ready meals plant in Opole, Poland.

TheMeatSite News Desk

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