Trading Update

Uniq Plc, the European chilled convenience food group today provides the following trading update for the third quarter.

Following our last update in July we have seen further significant deterioration in economic conditions, particularly in the UK and France. The consumer response to these conditions is affecting the mix of sales towards lower added value products and channels, and towards price discounted products. This has led to a disappointing margin performance. Sales for the third quarter to the end of September were in line with last year.

Divisional commentary

UK sales grew by 1.7% in quarter 3 which was a small improvement on the 0.5% growth in the first half. The growth in sandwiches has slowed significantly from 13.1% in the first half to 2.1% in quarter 3 and whilst sales in desserts have now stabilised this was at a cost to margin. Across the UK business as a whole the positive impact of price increases achieved in quarter 3 has been offset by the adverse mix and the need to drive volume through price discounting. Despite these pressures we expect the UK to deliver a trading profit in the second half, albeit at a much lower level than last year, and still dependent on Christmas.

Northern Europe sales grew year on year by 4.2% in quarter 3, having grown by 3.0% in the first half. The Netherlands salad sales were flat following the decline of 9.7% in the first half. In Germany, sales declined by 2.0% after a flat performance in the first half, reflecting a weak fish market. The strong growth in Poland has continued at 24.4% in the quarter. The improving trend in The Netherlands means that second half performance in Northern Europe is expected to be an improvement on last year. 

The decline of the French market worsened significantly in the third quarter and our sales reduced by 6.8%. The decline in our sales is more heavily skewed to branded rather than own label products, resulting in an adverse margin mix. 

We expect the negative market trends to continue and, as a consequence, the Board now anticipate that the Group will incur a trading loss in the second half as a whole.