Sligro Food Group Sees Sales Up 2.3% In Q3, Boosted By Acquisitions
Dutch wholesaler Sligro Food Group has posted a 2.3% increase in sales in the third quarter of its financial year, of €605 million.
The group said that excluding the effect of acquisitions and the impact of IFRS 15, sales were down by 2.5% in the period.
Organic sales in the group's Dutch business were down 3.2% due to a 'sharp fall' in sales in July and August, while in Belgium, organic sales in the third quarter were up 4.7%, the group said. Its Dutch performance was boosted, however, by the acquisition of De Kweker, which contributed around €30 million to its sales.
The group said that the fall in sales has largely been driven by customers that have joined the group via the partnership with Heineken.
'We believe there are two important reasons for this,' Sligro said in a statement. 'First of all, the split from Heineken's former wine supplier earlier this year. Secondly, pending the integration, we are not yet able to honour our promise to our joint customers: one order, one drop, one invoice.'
The group said that it is 'gradually recovering' its wine business, with the integration of new premises in Rotterdam in October set to lead to a recovery in sales and cost savings next year.
Period Of Transition
Sligro added that the transition process that it unveiled last year is 'dominating' its operations this year, and will also encompass part of next year, while a number of 'large, strategic projects' are also being undertaken by the group.
'This coincides with a phase in which market growth in the countries in which we operate has weakened, and cost inflation is high,' Sligro said.
The business expects a decline in profits in the second half of the year, with full-year EBIT likely to come in at between €40 million and €45 million, it said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.