Bakery products supplier CSM’s profits have been hit due to pressure to reduce selling prices, according to its first-quarter trading update.
Netherlands-based CSM, which owns BakeMark UK, saw volumes in bakery supplies down 3.8% compared to Q1 of 2008, with “the more luxury pastry items particularly affected”.
Sales in its Bakery Supplies Europe division stood at €249.2m compared to €264.6m for the comparable 2008 period. EBITDA before exceptionals was €6.3m compared to €12.8m in 2008.
The statement released from the company noted that the pressure to reduce selling prices in bakery supplies led to a decrease in return on sales.
The company saw overall sales growth of 2.9% for its bakery supplies and lactic acid businesses. Profit before deductions stood at €20.1m, impacted by a decline in volumes of 4.2%.
Gerard Hoetmer, chief executive officer at CSM, said the firm is focused on generating cash, which has resulted in a number of cost-cutting initiatives, including the temporary suspension of a number of production lines.