Campofrio, the Spanish meat processor, said that changes to its group structure and adverse exchange rates were to blame for a decline in both sales and profits for the first nine months of the year.
The company reported net profits of €10.7 million for the January to September period, a 4.5 per cent drop compared to the same period a year earlier, mainly due to changes to Spanish accounting regulations last year which allowed the company to benefit from a tax rebate which was not repeated this year.
Meanwhile, sales were down 8 per cent to €945 million following the disposal of the group's Polish unit Ostroleka and the closure of its fresh meat processing unit in Portugal. The company added that deteriorating exchange rates, in particular for the US dollar, Russian rouble and Polish zloty, had also taken their toll on sales.
Gross operating profit (EBITDA) was up 5.7 per cent to €69.5 million, however, helped by lower raw material costs and the success of a number of innovative new products during the period. Spanish EBITDA in particular showed a major improvement, rising 20 per cent year-on-year.