In line with the trend observed at the end of 2008, cheese product net sales suffered from the fall in prices in certain markets, and from lower consumption due to the economic crisis. The basis of comparison is an unfavourable one because the first-quarter 2008 net sales included the impact of Easter within the context of a less critical economic environment.
The change in net sales for other dairy products reflects the fall in world prices for industrial products, as well as the competition from European processors benefiting from a lower price for milk than that paid in France.
The Group’s consolidation scope evolved as a result of the full consolidation of Fromapac (France) with effect from the second quarter of 2008.
There was a positive foreign exchange impact of +0.3%. The gain in value of the US dollar against the euro more than compensated for the fall in value of the pound sterling and the currencies of central and eastern Europe.
In France, the imbalances within the dairy industry were accentuated during the first quarter of 2009. The misfit between the price of milk and the prices for industrial products will have an impact on the Group’s results for the first half of 2009.
Source: Bongrain SA
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