French Flo Group expects to break even in full-year 2001 - profits to break even, sales growth of 7% - Brief Article - Statistical Data Included

Eurofood, Oct 11, 2001

French restaurant group Flo, which operates the Bistro Romain and Hippopotamus chains, has reported a net loss of 4.5m [European Dollar] for the first half of fiscal 2001 but has said that it is confident of a recovery in the second half. The loss compares to net profits of 3.4m [European Dollar] in the first six months of last year.

Sales were 18.6% higher in the first half at 185.9m [European Dollar]. However, on a like-for-like basis sales were in fact down on last year by 5%, indicated the company's new chairman Dominique Giraudier.

Giraudier, who replaced Jean-Paul Brayer as chairman two weeks ago, attributed its results to a number of factors, including the impact of BSE and foot-and-moth disease and costs related to the restructuring of the Bistro Romain chain, acquired last May. Exceptional costs of 2.3m [European Dollar] resulting from the reorganisation of the group and job cuts also affected the bottom line.

Flo is expecting sales growth of 7% for the full year and for profits to break even. Giraudier believes that the restaurant trade is "buoyant and growing strongly", in spite of the current "stormy weather".