CFG sales grow by 5.7% to €1.39 billion in the first nine months of the year
The Group has strengthened its cash position and reduced net debt
07.11.2012 CAMPOFRIO FOOD GROUP, SPAIN
Campofrio Food Group’s leading brands registered growth of 2.8% in 9M12. The ‘health’, ‘heritage’ and ‘snacking’ segments registered an outstanding performance with aggregate sales growth of 22%
Campofrio Food Group (CFG) reported revenue of €1.39 billion in the first nine months of the year, an increase over the previous year of 5.7% due to both, the impact of Fiorucci´s acquisition and the organic growth.
During the nine-month period, the Group’s strategic commitment to innovation continued to bear fruit, as evidenced by the outstanding performances in the ‘health’, ‘heritage’ and ‘snacking’ segments: these categories emerged as the Group’s sales drivers, registering aggregate growth of 22% and accounting for 11% of revenue in 9M12. Campofrio Food Group’s brand-centric strategy also generated significant returns and once again bucked the adverse trend for branded products: sales of CFG-branded products to the distribution channel rose by 2.8% in total, driven by strong performances by Aoste in France (+5.7%) and Belgium (+6.6%), Justin Bridou in France (+7.4%) and Campofrío in Spain (+2.8%).
The Group’s strong topline performance was accompanied by higher investment in marketing and new product development designed to unlock sales. The successes on the new product development front, coupled with meat purchasing productivity gains, partially mitigated the growth in raw material and energy costs. As a result, EBITDA amounted to €105.4 million and net profit reached €4.7 million in the first nine months of the year.
In parallel, Campofrio Food Group has been reinforcing its solid financial position. Specifically, the Company’s cash balance increased by €29.6 million during the nine-month period to €157.7 million, while net financial debt was cut by €7 million to €483 million, implying a ratio of 3 times EBITDA.
According to Robert A. Sharpe II, CEO of Campofrio Food Group: “The initial results of our investment program are very encouraging. The sales performance of this first nine months of the year is remarkable. Nevertheless, the strategic plan is not positively impacting the bottom line of the P&L yet. This is due to inflation and the lag in the benefits achieved relative to the investments that drive them. We are confident about achieving, growth and productivity and expect both of these value drivers to accelerate over time as the strategic plan is deployed”.