Increased profitability for Rieber & Son

Rieber & Son delivered a quarterly result showing continued improvement in profitability, reports www.megafishnet.com with reference to Rieber & Son.

"The improvement programme ‘Our Future' is completely on schedule and the measures we have taken in the factories and in the purchasing process are delivering the expected results", said CEO Patrik Andersson.

The operating profit improved by over 30 percent in the second quarter, ending on NOK 74 million. The gross margin increased by 4.5 percentage points.

The improvements came despite a reduced sales revenue of 11.5 percent in the quarter.

"Part of the sales decrease was effectively planned as we have sold businesses that were not profitable or not part of our core business. Within the last year we have sold the brand Sopps, the frozen onion ring business, the King Oscar business and the marine ingredients business. This explains more than five percent of the sales decrease", said Andersson.

In addition, currency conversion had a negative impact on sales of 3.4 percent. The organic growth was minus 3 percent.

"We had weak sales in April due to the combination of an early Easter and bad weather", said Andersson.

The improvement programme ‘Our Future' resulted in a net effect of NOK 58 million in the second quarter. The programme has by the second quarter generated positive whole-year effects of NOK 212 million.

"I am satisfied with the fact that we are completely on schedule with the work to improve the Group's profitability with effects of NOK 400 million in 2012", said Andersson.