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Calvo Strong Internationally Still Struggles Within Spain

The Spanish company, Calvo Group, has announced an operational 13.83 million Euros net profit generated last year, 48% higher than the 2007 figures.

Calvo’s 2008 turnover reached Euro 414.34 million and a gross operating profit of Euro 28.16 million, thus making 2008 “one of the best years in recent history”, according to the group’s management.

Calvo public statements indicate that the main reason for the boost in earnings is the internationalization process and the expansion of its main brands - Calvo, Nostromo and Gomes da Costa - throughout the world since 2005/2006.

Heading this new strategy is Manuel Calvo Garcia-Benavides, the third generation of the family.

Despite this good news, the company is still struggling with high interest costs which are related to its bank debt, estimated to be close to Euro 140 million.

In its economically troubled home market – Spain – Calvo, which only produces its own brand – has seen it branded sales, especially premium yellowfin, decline by more than 10% over the last 5 months. This decline is caused by supermarkets expanding private label sales of canned tuna, and consumers replacing higher priced yellowfin with cheaper skipjack.