Birds Eye Iglo expects to exceed its profit and cash flow target this year, the UK frozen fish company said recently in its mid-year review.
“Profit and cash flow generation will be ahead of our annual plan last year, and we expect to be able to hold on to the terrific margin expansion we have achieved year-to-date,” said the company.
Despite “a challenging market environment,” where a squeeze on disposable income has triggered an increase in promotional spending by retailers, Birds Eye Iglo said it continues to improve its gross margins.
The company also reported that it increased its first-half EBITDA (earnings before interest, taxes, depreciation, and amortization) by EUR 6.8 million, to EUR 101.6 million, over the first half of 2009.
What’s more, Birds Eye Iglo in its continental European markets experienced growth of 2 percent, driven by its core fish and vegetable categories and the introduction of a new poultry range. However, the UK market is lagging as a result of the company taking a more balanced approach to promotional spending.
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