Zetar on target for year

published 15 May 2012

Snack foods group Zetar said full year sales and pre-tax profit are in line with current market expectations and is confident its performance in the current year will be back on plan.

The aim listed firm said total group sales fell 5 per cent to £128m in the year ended 30 April 2012 after a mixed performance at its two main divisions. Confectionery sales increased 2% to £88m while natural snacks slumped 18% to £40m.

A reduction in anticipated Easter confectionery sales and the strategic exit from a significant volume of low-margin commodity snack products resulted in a 5% reduction in overall group revenues, in line with current market expectations, the group explained.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Relatively disappointing Easter sales were offset by an increase in everyday sales, Zetar added.

The group said it has started the new financial year on a positive note, after it confirmed £13m worth of new business to start this summer.

Zetar's new Guinness brand ranges of chocolates and nuts will begin to appear on shelf this summer as well as Olympic Games gift biscuits and snack packs.

Ian Blackburn, Chief Executive commented: "Although Easter orders were disappointing and consumer markets remain challenging, we are optimistic about the opportunities in this financial year following recent significant new everyday wins, which further reduces our dependence on seasonal business. We have also added two strong brands to our growing portfolio with more in the pipeline."

"Furthermore the recent cost reduction programme will result in overhead efficiencies in the year and accordingly we are confident that the group's financial performance in the current year will be back on plan."