Portuguese soft drink production and bottling company Sumol+Compal has seen a 93% annual drop in profits during the first half of 2016, to €278.000.
Turnover in the same period fell by 6.4% to €159.2 million, with sales down 7% to €154.8 million.
In Portugal, however, sales grew by 4.1%, to €113 million. Sales in external markets were down 24.8% to €41.8 million, due mainly to the adverse economic conditions in Angola.
Regarding the outlook for this year, Sumol+Compal expects that the category of 'high rotation drinks' in Portugal 'should show a pattern of moderate growth, benefiting from the increase in consumer income, growth of foreign tourism and favourable weather conditions during the summer'.
The company added it will maintain a strong focus on innovation, communication and renewal of brands, with sales expected to progress above market growth.
Outside of Portugal, Sumol+Compal expects that the negative sales trend in Angola, which is its main export market, 'should lead to a decrease in international activity'.
As a result, 'the turnover and operating results in 2016 should be moderately lower than those generated in the previous year', the company said.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.