Dutch food group CSM reported a decline in third-quarter profits today (25 October) as one-off costs hit earnings.
In the three months to the end of September, EBITA fell to EUR20.9m (US$27.1m) from EUR28.3m a year earlier. One-off charges related to cost cutting initiatives and moves to sell of its bakery business hit earnings, it said.
However, EBITA before one-off costs amounted to EUR40.4m, an increase of EUR10.1m on last year.
"Our focus on margin improvement and cost reductions paid off and was the most important factor in the recovery of our EBITA before one-off costs," the company said. "Positive currency effects supported both sales and EBITA."
Sales in the third quarter reached EUR834.2m from EUR784.8m in 2011, largely due to a stronger US dollar. Organic sales growth was down 2.7% due to higher prices and lower volumes.
CSM, which announced in May it would sell off its bakery operations in Europe and North America, said an information document on the unit has been sent to potential buyers.
CSM put the division up for sale blaming weak consumer spending and high raw material prices. The company said it wanted to focus on bio-based ingredients.
CSM's share price was up 2.94% at EUR15.60 at 16:35 BST.
