Dole Fresh UK has warned that UK retailers’ drive for direct sourcing and low pricing is continuing to affect profitability in the intensely competitive fresh fruit category.
The company posted pre-tax profits of £729,000 for the year to 31 December 2009, down from £854,000 in 2008, accounts filed at Companies House show. Turnover was down marginally, from £122.7m in 2008 to £122.2m last year. However operating profit rose 84.9 per cent to £710,000.
The directors claimed in the report that pressure from retailers was making margin growth difficult at a time of turbulence in the currency markets.
“With the recessionary background of 2009, the UK retailers are competing more intensely to deliver the lowest priced fruit, especially with the focus on consumers trading down from premium lines to more value offerings,” they wrote.
“UK retailers have further extended their remits regarding direct sourcing to aid in the facilitation of the lowest priced offerings.”
No comments yet