CSM jobs under threat as profits drop on weak demand in Europe

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CSM jobs under threat as profits drop on weak demand in Europe

Related tags: Bakery supplies, Profit

Ingredients supplier CSM has suffered a 23% fall in profits in its first quarter (Q1) results driven by weaker demand in artisanal bakery in Europe, which could force job losses.

The company’s profits fell from €27.9m in Q1 last year to €29m this term. Sales however were up marginally to €798.7m.

Profits for the firm’s US bakery supplies were essentially flat, but profit on bakery supplies in Europe plummeted 84.7% to just €1.9m.

“The lower demand in the artisan bakery in particular has a negative impact on margins,”​ said the company.

It added in its release that 2012 would be a transitional year and saw no let-up in consumer behaviour. It even hinted at further job losses.

“To address the challenges to improve long term profitability, we are considering further actions beyond the disposals announced in February,”​ said the firm.

The company announced in February it would restructure its business to focus more on convenience products, such as frozen bakery, in a move that would lead to 100 job losses. 

Related topics: Manufacturers

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