Press Release
26/02/10 - 2009 Annual Sales Results
Strong growth reported in International markets and the Americas, confirming first-half trends
Sales at December 31, 2009, vs. prior year
In 2009, Bel Group consolidated sales totaled over €2.22 billion, up 0.2%, largely on an even keel compared with 2008.
Key factors impacting the year versus 2008 included:
• The full-year consolidation of acquisitions made in 2008 (e.g., entities purchased in the Czech Republic on July 1, 2008) increased sales by 0.8%;
• Foreign exchange fluctuations trimmed 0.2% from sales growth following unfavorable trends in the pound sterling and the Ukrainian hryvnia, partly offset by favorable trends in the US dollar, the Egyptian pound and the Japanese yen;
• Sales slipped 0.4% on a comparable structure and exchange rate basis despite the recovery observed in the fourth quarter. Sales of branded cheeses, the Group’s core activity, continued to advance, but the growth was not enough to offset the fall in industrial product sales figures caused by steep price declines.
Broken down by region, the sales performance was mixed:
• Sales in Western European markets remained strong as a result of a targeted sales and marketing strategy. However, promotional efforts following the drop in raw material prices as well as the decline in dairy by-product prices negatively impacted sales in the region.
• The International region and the Americas region both reported double-digit sales and market share gains. The expansion in those regions was accommodated by selectivity of distribution channels and targeted variations in the Group’s product range.
• Sales in Eastern European markets were negatively affected by the severe economic recession, primarily in Ukraine.
Despite the tough economic conditions, particularly in Eastern Europe, the Group expects to see a significant increase in operating income for the full year. The improved results should enable the Group to confirm a strong reduction in consolidated financial debt in the second half of the year.
Bel Group's annual 2009 results will be published on March 26, 2010.
