Improved results from Rieber & Søn

Wednesday, 29. April 2009 08:10
Rieber & Søn's operating profit increased by 29 per cent to NOK 95
million in the first quarter.

- Good sales in March were a main reason for the improved
performance, but the result also reflects our good control of costs
in all business areas, says CEO Patrik Andersson.

The food company with production in seven countries can report
variations in the way the global recession and large exchange rate
fluctuations are affecting the company's business units in different
geographical areas.

- The common denominator is that everyone has to have food. That is
why we are relatively unaffected by the recession, says Andersson.

Lower exchange rates

In Norway, the Czech Republic and Poland the decline in exchange
rates has increased the price of imported raw materials. To some
extent this has offset the effect of the falling price of raw
materials in the spot markets. Conversely, King Oscar, which has a
leading position in the American market, has benefited from the
strengthened US dollar.

- Exchange rate fluctuations have had only a minor negative impact on
the Group as a whole, says Andersson.

Cost control

Cost control has a high priority in the Czech Republic, Denmark and
Russia. Our Czech operations produced good first quarter results,
while the business in Denmark has started a turnaround in order to
return to profitability.

- In Russia we have had amazing growth in the last few years, and for
the first time for many years the quarterly results reflect a drop in
sales. But we have a flexible organisation and a capable management
who have adapted cost levels to the falling sales. As a result, our
profitability in Russia has so far been unaffected, says Andersson.

Rieber & Søn's first quarter sales were 3.4 per cent higher at NOK 1
236m. EBIT stood at NOK 95m, while the EBIT margin was 7.7 per cent,
- a margin improvement of 1.5 percentage points. Earnings per share
were NOK 0.77, while the return on capital employed was 11.7 per

Fur further key figures please refer to the stock exchange
announcement or the interim report at the company's website

CEO Patrik Andersson
Tel.: +46761113400
Financial Director Tor Lund
Tel.: +4795272810
Director of Communications & IR Geir Mikalsen Tel.: +4790620851

Rieber & Søn in brief

Rieber & Søn is one of Norway's leading food companies. The main
markets are the Nordic countries, Central- and Eastern Europe, where
the Group has considerable market shares. Rieber & Søn develops
products based on local taste, and shall inspire people to prepare
exciting and tasty food in an easier way.

Rieber & Søn has leading brands such as Toro, Denja, Mr.Lee, King
Oscar (Norway), Frödinge (Sweden), K and Bähncke (Denmark), Delecta
(Poland), Vitana (Czech Rep. and Slovakia) and Chaka (Russia).

Rieber & Søn had a revenue of 5 billion NOK in 2008. The Group has a
workforce of 3 800 (2 550 of these outside Norway). Rieber & Søn has
production in Norway, Sweden, Denmark, The Netherlands, Poland, Czech
Rep. and Russia. In addition the Group has sales organisations in
Germany, Great Britain, Slovakia, Belgium and US.

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

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