Belgian food group Ter Beke has sounded a note of caution on its full-year outlook, as the group is yet to see consumer confidence fully return in the wake of the European horsemeat scandal.
In a sales update released today (8 May), Ter Beke said first-quarter revenues had been dampened by the horsemeat scandal and added that – while it is working to counter the resultant loss of consumer confidence – demand continues to be down.
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“It is at this stage impossible to assess how long the horsemeat scandal will continue to affect consumer confidence. The group is doing its utmost to neutralise the negative impact as soon as possible and the first signs of recovery are apparent,” the company said.
During the first quarter, the company booked a “similar” turnover to the comparable period of last year, as higher demand for processed meats offset weakness in its chilled ready meals business.
The company said that in order to rebuild demand at the unit it is investing in additional promotions. which, it said, would have a negative impact on first-quarter profitability. Nevertheless, Ter Beke added it is “confident” that the full-year result will be on a par with 2012.
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