RNS Number : 3260F
Uniq PLC
08 October 2008
Trading Update
Uniq Plc, the European chilled convenience food group today provides the following trading
update for the third quarter.
Following our last update in July we have seen further significant deterioration in
economic conditions, particularly in the UK and
France. The consumer response to these conditions is affecting the mix of sales towards lower
added value products and channels, and towards
price discounted products. This has led to a disappointing margin performance. Sales for the
third quarter to the end of September were in
line with last year.
Divisional commentary
UK sales grew by 1.7% in quarter 3 which was a small improvement on the 0.5% growth in the
first half. The growth in sandwiches has
slowed significantly from 13.1% in the first half to 2.1% in quarter 3 and whilst sales in
desserts have now stabilised this was at a cost
to margin. Across the UK business as a whole the positive impact of price increases achieved
in quarter 3 has been offset by the adverse mix
and the need to drive volume through price discounting. Despite these pressures we expect the
UK to deliver a trading profit in the second
half, albeit at a much lower level than last year, and still dependent on Christmas.
Northern Europe sales grew year on year by 4.2% in quarter 3, having grown by 3.0% in the
first half. The Netherlands salad sales were
flat following the decline of 9.7% in the first half. In Germany, sales declined by 2.0% after
a flat performance in the first half,
reflecting a weak fish market. The strong growth in Poland has continued at 24.4% in the
quarter. The improving trend in The Netherlands
means that second half performance in Northern Europe is expected to be an improvement on last
year.
The decline of the French market worsened significantly in the third quarter and our sales
reduced by 6.8%. The decline in our sales is
more heavily skewed to branded rather than own label products, resulting in an adverse margin
mix.
We expect the negative market trends to continue and, as a consequence, the Board now
anticipate that the Group will incur a trading
loss in the second half as a whole.
For further information:
Uniq plc +44 (0)1753 276011
Geoff Eaton Chief Executive
Martin Beer Finance Director
The Hogarth Partnership +44 (0)20 7357 9477
Julian Walker & James Longfield
This information is provided by RNS
The company news service from the London Stock Exchange
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