No impact from recession on the Group’s operational result

The Paulig Group’s six-month operational result 1 January–30 June 2009 was good. The combined net sales of Paulig and Santa Maria were 331 million euros (2008: 347 million euros). This decline was due to the weakening of the Swedish currency. Net sales were on a par with the previous year’s figure if the effect of the exchange rate is not factored in. The Group’s operational result for the first two quarters was 16.7 million euros (2008: 22.1 million euros). In 2008, the result was boosted by a non-recurring capital gain of 8.4 million euros. The Group’s financing is in good shape, and solvency measured as shareholders’ equity of the total balance sheet accounted for 70%.
In all business sectors – coffee, world cuisine and seasonings – net sales and profits were in line with forecasts. At the same time, the German associated company Fuchs improved its profits on the previous year’s figure. The prevailing recession has barely affected our business operations, although the UK, Russia and the Baltic countries in particular have been challenging market areas.
The transfer of coffee manufacturing to a new production plant has made progress, and on current trends the old roastery will wind up as planned by the end of the year. The Russian roastery project has also been restarted. Our expectations for the end of the year are positive, and we forecast that the net profit for the whole year will reach the same level as last year.