Yoghurt war gives Uniq indigestion
FOODS group Uniq has announced growing losses with worse to come in the second half as a war continues with Muller of Germany over Europe's yoghurt market.
Uniq announced an interim loss of £28.2m, compared with £2.2m last time. Uniq shares - 544p in April 1998 - were 6p off at 142p. Chairman Neil Stapleton said the £28.2m loss before tax dramatically understated Uniq's potential and annualised savings of £30m a year are in hand.
Stapleton said turnover of the prepared foods and northern Europe divisions grew by 10% and 11% like-for-like. He backed his promise that next year would be better by declaring an interim dividend of 2.5p.
Stapleton, who joined Uniq from the board of Marconi in July, is looking for a managing director to replace Terry Stannard, who left after September's profits warning.
Yoghurt is only 10% of Uniq's business, where Stapleton sees big growth in prepared foods such as the new Tapas range Uniq makes for Sainsbury's. He sees scope for savings in purchasing and manufacturing, and said a major reorganisation of the French operation is under way.
The convenience food manufacturer, whose brands include include Utterly Butterly, saw a slight increase in turnover on continuing business, £11m up at £493m. But St Ivel in the UK and the parallel Marie yoghurt and desserts business in France undid gains elsewhere, having been outpromoted by rivals such as Muller.
The company, spun out of Unigate, ran up exceptional costs of £35.3m, up £4.3m, in demerging Wincanton logistics and selling the loss-making Malton pigmeat concern to Grampian Country Foods. Loss per share is 19.4p, down 11.7p.
