(Adds detail on strategy update)
LONDON (Thomson Financial) - Uniq Plc. reported a wider first-half pretax
loss, adding the trading environment has been tough and the company has seen
inflationary pressures in commodities such as wheat, milk, cream and energy
costs.
The company warned the tough and volatile economic conditions are continuing
in the second half but said it believes it can maintain the management's
expectations for 2008.
The European chilled convenience food group posted a pretax loss of 4.2
million pounds for the six months to end-June compared with 3.7 million pounds
in the year-ago period. Total revenue rose to 394.5 million pounds from 360.3
million pounds a year ago.
Going further, the company said it remains confident of making significant
further progress.
Looking ahead, Uniq said it believes the current tough trading environment
will encourage supplier consolidation that may not have arisen in more benign
conditions.
The company said the areas where it sees the most pressing need for change
are fish in Germany, where margins in the hard discount and private label
channels are unsustainably low, and fish and salads in the UK, where there is
excess capacity and a number of suppliers are only marginally profitable or
losing money.
In France, Uniq believes consolidation of the fragmented and growing chilled
market and the mature frozen market will take place and Marie, as the strongest
brand in its two markets, could have an important role to play.
TFN.newsdesk@thomson.com
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