Sligro Food Group forecast results for 2004
The development of third-quarter turnover for Sligro Food Group did not show an improvement on the first six months, mainly owing to the poor summer weather. The effect was seen particularly strongly in that part of our retail activities which is relatively highly dependent on tourism. The food service activities performed in line with expectations in the third quarter.
Price pressure continues to be as strong as ever in the markets serviced by us and increased volume was hardly sufficient to compensate, if at all. With tight control of costs, substantial savings are, however, being achieved.
We expect to see like-for-like growth in turnover in the fourth quarter. And fourth-quarter turnover will in any case be higher since the period this year comprises 14 weeks compared with 13 weeks in the corresponding period of 2003.
As previously announced, a property transaction took place in the third quarter, yielding non-recurring income of €5.9 million after tax. Including this income, Sligro Food Group expects to see net profit after tax for the whole of 2004, excluding the acquisition of VEN Groothandelscentrum, grow by between 15% and 20%. Net profit for 2003 was €44.8 million.
The VEN Groothandelscentrum takeover was recently completed and the company will be included in the consolidation for the first time with effect from the beginning of the fourth quarter. We expect VEN Groothandelscentrum, after amortisation of goodwill, to make a positive contribution to fourth-quarter group net profits.
The turnover figures for 2004 will be released on 4 January 2005, with the complete set of figures for 2004 published on 27 January.
Sligro Food Group, a quoted company, encompasses food retail and food service companies selling directly and indirectly to the entire Dutch market for food and beverages. Sligro Food Group aims to be a consistent quality company, achieving controlled growth in all its activities and for all its stakeholders. Turnover in 2003 amounted to € 1,356 million. The average number of full-time equivalent employees was 2,746.
Veghel, 14 October 2004
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On behalf of the Executive Board of Sligro Food Group N.V. |
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A.J.L. Slippens |
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H.L. van Rozendaal |
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Tel. +31 413 343 500 |
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www.sligrofoodgroup.com |
