French poultry group LDC has reported a drop in annual profits as higher raw-material prices and the impact of restructuring at its Marie unit hit the bottom line.
LDC yesterday (25 May) booked net profit of EUR47.8m (US$67.4m) for the 12 months to the end of February. A year earlier, the company reported an annual net profit of EUR63m.
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The group’s operating profit, meanwhile, was down 21.8% at EUR73.6m, LDC reported.
Profits within LDC’s poultry division were up despite the “sudden and strong” jump in grain costs. LDC pointed to the first full-year contribution of smaller rival Arrivé, which the company acquired in late 2009.
However, a second business bought in late 2009, prepared meals maker Marie, weighed on LDC’s bottom line.
In April last year, LDC announced the loss of 99 jobs at Marie to get the unit making a profit.
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By GlobalDataHowever, reporting its annual results, LDC said a turnaround at Marie had been “more difficult than expected”. As a consequence, LDC’s wider catering division filed a loss of EUR2.1m, compared to an operating profit of EUR7.3m a year earlier.
LDC’s top line provided some comfort, with turnover up 23.7% thanks in part to the full-year contributions of Arrivé and Marie. On an organic basis and at constant exchange rates, revenue rose 3.1%.
The financial numbers came as LDC reported the acquisition of French turkey firm Corico and a tie-up with Spanish co-operative Alimentacion Natural.
