The lower purchasing power in various parts of the world has had a negative effect on the half-year figures of Bel Groupe. The turnover is 2,7% lower than last year and the operating result shows a decrease of 38%. The company reports this in its semi-annual report. It also foresees a difficult economic and financial environment in the coming months.
Bel Groupe achieved a consolidated turnover of €1,69 billion in the first half of the year. That is 2,7% less than in the same period last year, when turnover amounted to €1,73 billion. Unfavorable exchange rates negatively impacted our sales (-3,9%), with the appreciation of the euro against the US dollar being the main culprit. The consolidated operating profit came to €109 million, a decrease of 38% compared to a year earlier. Net profit for the first six months of the year is €67 million.
The first quarter was especially difficult for Bel Groupe. "The growth in that period was characterized by pandemic panic buying. This makes it difficult to make a comparison with last year. However, we were able to partly make up for the loss we made there in the second quarter." In that quarter, sales increased by 2,7% to €850 million. In particular, sales of the 'Boursin' brand in France, the United Kingdom and North America were good. In Germany, 'Mini Babybel' in particular scored well among consumers, mainly as a result of extra promotion.
In the Middle East and North Africa, except for the sale of Boursin, the performance was less good than in other years. "Conditions in these countries deteriorated during the corona pandemic. Algeria in particular suffered from the significantly weakened economic conditions. This led to very high prices for basic food products and a negative effect on the purchasing power of consumers," the dairy company writes in the semi-annual report.
Future expectations
The prospects for the future are also not very positive. Bel Groupe again expects a difficult economic and financial environment. This is due to currency volatility, unfavorable commodity prices and an unstable economic and geopolitical context in the Middle East and North Africa. Nevertheless, we expect to benefit from the continued positive trend we are seeing in key areas such as the United States, Canada and China." Something that also supports Bel Groupe's financial position is the sale of Bel Leerdammer to lactalis† The acquisition will be completed by the end of the third quarter of 2021.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.