CSM jobs under threat as profits drop on weak demand in Europe
The company’s profits fell from €27.9m in Q1 last year to €29m this term. Sales however were up marginally to €798.7m.
Profits for the firm’s US bakery supplies were essentially flat, but profit on bakery supplies in Europe plummeted 84.7% to just €1.9m.
“The lower demand in the artisan bakery in particular has a negative impact on margins,” said the company.
It added in its release that 2012 would be a transitional year and saw no let-up in consumer behaviour. It even hinted at further job losses.
“To address the challenges to improve long term profitability, we are considering further actions beyond the disposals announced in February,” said the firm.
The company announced in February it would restructure its business to focus more on convenience products, such as frozen bakery, in a move that would lead to 100 job losses.
