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VIET SEAFOOD

High Raw Material Prices Drive Lumar In Red Spain, December 14, 12

Spanish tuna processor Lumar Natural Seafood is not finishing the year on a high note. The company’s operating profit is in the red at minus EUR 142,076 – down 140% from last year – and its factory workers recently protested in the streets about unpaid wages.
The 35-year-old company is blaming higher raw material prices for its drop in earnings. The 15% increase in raw tuna prices affected both sales volumes, which declined by 5%, and margins, it said.

The net result ended at a loss of half a million euros, down from a profit of nearly EUR 20,000 a year ago.

Lumar had previously forecasted its operating profit to hit EUR 701,740 in the first six months of the year. It said it was unable to pass on the higher raw material prices and that it also encountered higher costs than expected.
The company’s revenues were up 15% to EUR 5.2 million, but its share price has fallen to EUR 3.50, from around EUR 4.65 when it first listed on the Mercado Alternativo Bursatil (MAB) in July 2011.
To make matters worse, Lumar factory workers demonstrated in front of the local government office at the beginning of December, claiming that the company owed them wages.
According to the head of the workers’ union, Lumar justifies the missing pay by a lack of liquidity. The union said this explanation is not acceptable, given that the factory is still operating and shipping out products.
Both workers and the union alluded that several employees have been reprimanded for poor work performance.
Some workers said that some of their colleagues were paid in the last payroll.
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