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Salmon prices deal a blow to Frosta's first half earnings

German frozen foods giant hopes innovation and new product range can turn the tide.

German frozen seafood giant Frosta saw earnings slide in the first six months of the year as the company suffered from higher salmon and vegetable prices.

Earnings plunged 59.4 percent to €4.99 million ($5.6 million) from €12.3 million ($13.7 million) a year earlier.

Revenues, meanwhile, were 3.8 percent higher at €262.7 million ($292.3 million).

In May Frosta said it expects to post low single-digit growth in 2019 thanks to increased demand for its ready meals and the launch of its "Frosta Fit" low-carb range.

The Bremerhaven-based frozen seafood processor's sales increased in 2018 by 1.6 percent year-on-year to €509 million ($566.4 million), but the group's net profit after tax fell by €23.4 million ($26 million) to €20 million ($22.3 million).

The company blamed the profit drop on on the sharp increase in raw material prices in 2018.

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