Sligro Food Group posted a modest revenue increase in the first quarter, reaching €578 million compared to €574 million a year earlier. The food wholesaler, which supplies retailers and restaurants, attributed the 0.7% rise primarily to slightly higher prices, as reported by ABM FN-Dow Jones.

Volumes of drinks and food products declined, particularly in January due to wintry weather that kept consumers indoors. March brought milder conditions and provided some recovery, according to the company's update covered in De Telegraaf. In the Netherlands, sales climbed from €488 million to €492 million, while Belgium remained flat at €86 million.

The company highlighted pressure on smaller catering and restaurant clients.

Sligro expects additional monthly costs of €0.5 million to €1 million from elevated energy prices, linked to the war in Iran driving up fuel expenses. Management anticipates passing some of these on to customers and noted initial price hikes from suppliers, which could accelerate inflation, per the trading statement.

No details on profitability were provided in the quarterly release.

The update prompted a sharp decline in Sligro's shares, falling around 5% to trade near €13.36 in early Thursday trading. Despite a Buy consensus from five analysts, the average target price stands at €12, implying potential downside from current levels.

Sligro reiterated its ambitions for profitable growth with a balanced sales mix, targeting a 7.5% EBITDA margin. Shareholders can expect payouts around 60% of net profit as regular dividends, as outlined during the investor day in March.