Zetar reports 5% drop in revenue
Zetar has achieved an increase in everyday sales and extended its portfolio of branded products.
However, the increase in sales was offset by the strategic exit from a significant volume of low margin commodity snack products and a reduction in anticipated Easter confectionery sales resulting in a 5% reduction in overall group revenues to £128 million in line with current market expectations.
Confectionery division
Following the acquisition of Derwent Lynton (DL) last year, the division closed the DL
Derby factory in October 2011 as planned and transferred and successfully integrated its business into the group’s recently extended York factory.
Overall confectionery division sales were up 2% but, excluding DL’s sales, the division recorded an underlying fall of 2% comprising an increase in everyday sales offset by a relatively disappointing Easter sell-in. However, following customers’ caution over the ordering of Easter products, our retailer customers experienced one of their best ever sell-throughs of our products and frustratingly noted that some of our product lines were sold out several days before the Easter weekend.
Natural snacks division
The natural snacks division resigned from some low margin core commodity sales at the beginning of the year, particularly of processed and packed nuts, following an unprecedented period of raw material inflation, resulting in most of the 18% reduction in sales. However, though lower than targets, the group achieved an increase of over 20% in sales of branded added-value snacks.
