Sligro Food Group has reported a fall in full-year profits as pension costs hit the bottom line.Despite higher sales, profits were down 0.9% in to €68 million for 2013, compared with the previous year. However, sales rose 1.3% to €2.5 billion.
Operating profit from the food retail arm doubled to €8 million – due to an improved gross profit margin.
"Sligro Food Group was able to maintain its results at a good level in 2013 in a market in which consumer spending was under increasing pressure as the year progressed,” said chief executive Koen Slippens. “Without the additional pension costs, profit would actually have increased."
There were signs of an economic recovery on its way, said the company, but it did not believe it would have a positive impact on spending during 2014. Sligro had learned to live with stagnating or deteriorating economic conditions by taking prompt action.
"Although there are signs of an economic recovery, we do not expect it to drive growth in consumer spending in 2014. We are busy implementing a number of improvements and have announced two valuable acquisitions, giving us energy to address the challenges that face us in the year ahead," explained Slippens.
The 2013 acquisitions of Van Oers and Superdirect will contribute around €55 million to group sales this year.
