Higher operating profits for Rieber & Søn

Rieber & Søn’s operating profits increased by NOK 15 million in the first quarter. – This is in line with our plans to improve Group profitability, says CEO Patrik Andersson.

The operating profit was NOK 110 million, reflecting an improvement of 15% on last year’s first quarter. First quarter sales were slightly lower at NOK 1 196 million, against NOK 1 236 million last year.

- We have sold the onion ring business in the Netherlands and the Sopps brand, and this has reduced sales. We have also been negatively affected by currency conversion effects which have reduced sales by NOK 27 million, says Andersson.

Rieber & Søn has drawn up a strategic plan aimed at improving profitability by NOK 400 million in 2012. Implementation of the programme, designated ”Our Future”, provided net effects totalling NOK 53 million in the first quarter.

- We now have eight production plants in Norway, Sweden, Denmark and the Czech Republic which are undergoing an extensive programme aimed at improving productivity and inventory control. This is now showing results, says Andersson.

In addition to this, the Group’s purchasing function is being centralised, and new and better purchasing procedures are being established.

- The programme is progressing as planned, says Anderson.

EPS came to NOK 0.90 (0.77) in the first quarter, while the gross margin was 59.8% (56.7%). The EBIT margin was 9.2% (7.7%) and the return on capital employed stood at 14.0% (11.7%).