Despite a weak first half of the year, the warm summer earned Belgian water producer Spadel (best know for its brands Spa and Bru) a profit growth for the entire year.
Summer heath sooths price pressure
Although Spadel saw its operating profit fall by no less than 15 % in the first half of this year, the water producer is now expecting a profit increase for the entire financial year as this summer’s heat sent the sales of water soaring.
Still, the first half of the year showed several worrying trends: the Belgian water producer is afraid of a price war: “The commercial environment is increasingly competitive. This is characterised by strong promotional pressure and a price war in the wholesale distribution sector.”
Profit falls, organic turnover stagnates
Rising raw material costs also played a role, causing the operating profit to collapse by 16 % in the first half of the year. EBITDA was 17.8 million euro, or 4.29 euro per share. Profits were under pressure, particularly in Belgium and the Netherlands. Net profit was 12.5 million euro, 10 % less than last year.
Before the summer, organic sales growth stagnated: the turnover increase amounted to 0.5 %, excluding the acquisition of the Bulgarian sector colleague Devin. This acquisition – the largest ever for Spadel – helped the Belgian water producer achieve a 6 % increase in sales, worth 289 million euro.
