The Damm Group makes €26.5 million in the first half of the year, 1.1% less than during the same period last year

Barcelona (ACN). – The Damm Group is best known for its beer products including one of the most popular beers in Catalonia, Estrella. The Catalan company made a turnover of over €421 million in the first half of this year, representing an increase of 8.5% compared with the same period last year. The company’s net profit during this period was €26.5 million, 1% less than in the first six months of 2011. Damm stated that “it’s not possible to draw any conclusions” about its future performance from the results of the first half, since they are waiting for the results of the third quarter and there is uncertainty surrounding the effect of the VAT increase from September 1st. Also the increase in consumption during the summer will affect the company’s results. Despite these uncertainties, Damm said that sales in the past weeks have “evolved satisfactorily”.

Damm explains that the first half was marked by a continual “weak economic and financial situation”, with negative annual rates of GDP, a growing number of unemployed and much uncertainty about the future of the economy, causing adverse effects on domestic consumption. In the statement, the company said that the effect of the crisis has damaged sales, especially in the bar and restaurant sector where sales are declining, while sales in supermarkets for direct consumption at home are increasing.

The beverage industry is very dependant on the weather and the summer period, meaning that it is not possible to draw conclusions for the rest of the year from the company’s results so far. Moreover, this year there is uncertainty surrounding the effect of the VAT increase from September 1st. However, Damm said that sales so far this summer have “evolved satisfactorily”.

Damm also highlighted the incorporation of new businesses into the group, after the acquisition of Rodilla Group and Cacaolat (a leading Catalan milkshake brand) which has facilitated the expansion of its product range and put the group in a better position for the coming years. Damm’s acquisition of other companies has increased the number of employees to 3,257 people by the end of the first half, 40% more than last year. Investments made during the first half totalled €68 million.  

In the statement, the Catalan company referred to the increased cost of raw materials and packaging, as well as increased logistical expenditure as a result of rising fuels costs.