Sligro Food Group Posts 5.9% Increase In Sales In H1
Dutch wholesaler Sligro has announced that sales increased by 5.9% to €1.43 billion in the first half of 2017.
Operating profit rose by €1 million to €35 million compared to the same period in 2016, while net profit for the first six months stayed at €28 million - the same as last year.
Net sales for the company's food service business were up by 8.3%, boosted by the company's recent acquisitions of ISPC and Tintelingen. It also announced a proposed strategic partnership with Heineken.
Meanwhile, net sales of its food retail unit experienced a marginal increase of 0.5%, with operating profit falling by €1 million.
"As expected, improvements in employment levels and consumer confidence have translated into growing markets for both food service and food retail and this contributed to higher sales in both our business units in the course of the half-year," said Koen Slippens, Sligro CEO.
Slippens added that he expects continued growth for the second half of 2017, and for the company to outperform its 2016 results, particularly in the food service business.
The recent acquisitions will contribute around €45 million to sales in the second half of the year, and the company expects to conclude its negotiations with Heineken before the end of 2017.
Sligro is not making any concrete predictions for the full year results.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.