STEF-TFE reports turnover up 9%

Paris, France: STEF-TFE has reported turnover up 9.4% to €1,077.6m and operating income up 26.8% at €29.1m for the first six months of 2011.

Despite a slowdown in food consumption growth in Europe, turnover was up and operating income markedly higher thanks to higher sales in every division of the Group.

STEF-TFE, which turned over €2.057bn in 2010, is a European provider of temperature-controlled logistics primarily for temperature-sensitive food products at -25 °C to +18 °C for food manufacturers, retailers, catering and restaurant chains, wholesalers and pharmaceutical companies.

Higher results for the first six months of the year “testify to the resilience of STEF-TFE’s business model in an uncertain environment,” the company says.

Transport activities, land and maritime, which in 2010 bore the brunt of the economic slowdown, rebounded more than other businesses as the economy improved at the beginning of 2011.

The group is now reaping results from action plans set in 2009 and 2010 to optimise the transport network in France: volumes were up 2.3% during the first half of the year and quality of service improved, it says.

On the logistics side, new contracts and increased fill levels for frozen food did not lead to an improved operational margin as various costs also increased, particularly for electricity.

Business in Europe outside France is also growing in all markets, but suffers from adverse economic and financial trends which impacts consumption. The increased presence of the group in Europe, due to external growth and investments in logistics, should start to bear fruit before the end of 2011 the company says.

“The group has for the past two years reorganised and restructured its activities. This rationalisation effort along with a reinvigorated commercial approach and a rational external growth strategy should balance the negative impact of an uncertain economic environment during the second half of the year,” the company said is a statement.