- Resilient performance in turbulent environment

Net sales €374.4 million
EBITDA €41.5 million 
in H1 2008/09 

Highlights

•	Net sales €374.4 million in first half, stable on like for like basis, and
€249.2 million in the second quarter, down by 0.9% on like for like basis 
•	EBITDA €41.5 million in first half, down by 5.7% on like for like basis, and
€35.1 million in the second quarter, down by 6.6% on like for like basis 
•	EBITDA margin at 14.1% in second quarter, down by 70 basis points compared to
last year 
•	Net profit €17.8 million in second quarter, down by 19.8% on like for like
basis 
•	Quarterly results heavily impacted by economic crisis despite positive
performance over Christmas period 

Xavier Govare, CEO:

“Alfesca succeeded in maintaining its sales performance of last year, in the
face of significant deterioration in the consumer environment during its second
quarter.  This result was achieved by investing in promotional activity and by
managing our sale prices to ensure that we were competitively positioned in the
market with the consequence of put pressure on our margins. 

“We were pleased that as a result of our proactive positioning throughout the
quarter we were able to maintain or otherwise grow our market leading position
in the salmon and foie gras markets with Labeyrie retaining 23.7%  and 20.6% 
share of its respective markets over the Christmas period. 

“However, our results were clearly impacted by the general trend by consumers
to trade down where possible in response to the difficult economic climate. 
This consequently produced an unfavourable mix of sales with lower level of
branded sales and margin. 

“Our results were also held back by higher salmon and duck raw material prices
incurred in earlier periods, which following a time lag had to be absorbed
fully in the second quarter.  In addition, the drop in value of pound sterling
impacted our results by raising the cost of prawns which are purchased in US
dollars and gave rise to an adverse currency translation when the results of
Alfesca's UK operations are reported in Euros. 

“We expect the second half of our financial year to be challenging and for 2009
in general to continue to be turbulent following the exceptional drop in
consumer confidence experienced in recent months.  We believe the period ahead
will continue to see the growing trend by consumers to look to private label
products for greater value and we also expect the period ahead to continue to
be affected by volatility in the currency market as the effects of the economic
down turn unfold.  In response to these developments, we are taking actions
across our business to manage our fixed costs, increase efficiency and continue
with our strong programme of innovation to diversify and strengthen further our
market leading position in our key markets.”