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Horse Meat Scandal Hits Ter Beke Profits

06 March 2014

BELGIUM - Belgian meat and ready meals processor Ter Beke saw its sales fall last year from €421.1 million in 2012 to €407.2 million, a drop of 3.3 per cent.

Overall revenue came to €30.8 million compared to €33.1 million in 2012 a fall of 7.1 per cent.

And earnings (EBIT) were €12.8 million compared to€ 13.9 million in 2012 a fall of 8.5 per cent.

The 2013 EBIT result contains € 2.2 million non-recurring costs, compared to €0.4 million in 2012.

Earnings after tax was €6.2 million compared to €8.2 million, a drop of 24.4 per cent while net cash flow was € 24.3 million compared to €25.6 million in 2012.

The Processed Meats division saw limited turnover growth, in particular in the slicing and packaging activities.

The company said that an increase of the operating result was also due to a thorough cost control programme.

During the year industrial production of dried and cured processed meats at the Herstal processing plant was ended.

In the Ready Meals division turnover fell in lasagne and pasta meals because of the horse meat crisis, even though Ter Beke products were not involved.

The company said that consumer trust was returing more slowly than expected.

Specific promotion activities and a thorough cost control and reduction programme was helping the division gradually to restore the operating result of the division.

TheMeatSite News Desk

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