D.E MASTER BLENDERS 1753: Results First Six Months Fiscal Year 2013
(Thomson Reuters ONE) -
Solid First Half Performance, Mid-Term Outlook Reconfirmed
Amsterdam, February 27, 2013
Financial Highlights First Six Months Fiscal Year 2013
--------------------------------------------------------
* Total segment sales up 1.6%, like-for-like[1]; reported sales down (1.9)%
* Gross margin improved by +140 bps to 39.7%
* A&P investment up 20%
* Underlying[2] EBIT margin up 100 bps to 13.5%
* Normalized[2] earnings per share at ? 0.22
* Operating working capital improved 130 bps to 13.2% of sales
* Strong cash generation before legacy payments of ? 152 mln
Financial Highlights Second Quarter Fiscal Year 2013
------------------------------------------------------
* Rebound in underlying[2] volume growth from (2.7)% in Q1 to (0.8)% in Q2
* Total segment sales up 2.2%, like-for-like[1]; reported sales down (2.2)%
--------------------------------------------------------------------------
(? mln) H1 FY H1 FY Change
13 12 LFL.[1] Reported
--------------------------------------------------------------------------
Total segment sales 1,344 1,313 1.6% 2.3%
Reported sales 1,363 1,389 n.a. (1.9)%
Underlying EBIT[2] 182 164 10.0% 11.0%
Underlying EBIT margin[2] 13.5% 12.5% 100 bps 100 bps
---------------------
Normalized profit for the period[2] 130 n.a.
Normalized EPS[2] (?) 0.22 n.a.
Profit for the period 92 70
EPS (?) 0.15 n.a.
------------------------------------------------------
+--------------------------------+
| MID-TERM OUTLOOK RECONFIRMED |
| Sales growth of +5 to 7% |
| EBIT margin between 15% to 17% |
+--------------------------------+
+------------------------------------------------------------------------------+
| REVISED OUTLOOK FIRST 12 MONTHS FISCAL YEAR 2013 |
| Sales growth[3] of 0 to 2% (was +3 to 5%) |
|Underlying EBIT margin improvement[3] of +100 to 150 bps (was +150 to 200 bps)|
+------------------------------------------------------------------------------+
CEO Statement
---------------
Business performance for the first six months of FY 13 reflects a mixed
picture. We are seeing an improved trend for sales and volume in the second
quarter driven by a stabilizing Roast & Ground business, a steady Tea franchise
and rapid growth from L'OR capsules. On the country level, France, Spain and
Australia continue to perform well. The German business is starting to rebound
behind strong support and Belgium shows the first signs of turnaround. However,
Senseo, particularly in the Netherlands, underperformed due to heavy competitive
pressure during the holiday period. Out of Home continues to show weakness,
driven by a declining marketplace and insufficient organizational focus. Within
this, the organization has been changing and adapting, due to the spin-off,
management shifts, and the transition from a "divisional" mind-set to that of a
publicly traded company.
We have lowered our outlook for the first twelve months of FY 13 as we foresee
continued price pressure in Western Europe, especially France, due to lower
Arabica pricing. We will have to balance pricing and volumes over the coming
period to re-establish our competitive position, which will affect sales. To
build for the future, we are implementing organizational changes in Western
Europe to enable us to deliver our growth targets going forward and we intend to
continue strong A&P spending to support our brands.
We feel comfortable reconfirming our targets for the mid-term, with sales growth
of 5-7% and EBIT margins between 15%-17%. We believe that we are well-prepared
to deliver these results in the mid-term, as our key issues have been clearly
defined and work programs are in place to address them. The OOH segment is
currently in a restructuring process, while retail innovations are in execution
phase and will be rolled out over the next 18-24 months. Importantly, the
management changes of the Top 150 are nearing completion, allowing us to build
toward the future with a strong organization in place and a clearly agreed three
year growth plan. Cost savings plans are identified and are starting to deliver
and we are well ahead of our working capital targets, to reach 5% of sales by
2015.
In conclusion, despite a challenging start of the journey to create a high-
growth, high-margin pure play company, we feel confident that we now have the
business plans, the management depth and the brands to deliver.
MID-TERM OUTLOOK RECONFIRMED
------------------------------
The Company's views on the growth and profitability potential of its businesses
in the medium term remain unchanged. As such, the Company remains confident to
deliver +5 to 7% sales growth and an EBIT margin in the range of 15% to 17% in
the medium term.
OUTLOOK FIRST 12 MONTHS FISCAL YEAR 13 REVISED
------------------------------------------------
The Company expects to grow its segment sales by 0 to +2% and to improve the
underlying EBIT margin by +100 to 150 bps in the first 12 months of FY 13. The
revised outlook is based on the performance in the first 6 months and continued
pricing pressure in Western Europe. We will have to balance pricing and volumes
over the coming period to re-establish our competitive position, which will
affect sales. We intend to continue strong A&P spending to support our brands.
STRATEGIC UPDATE
------------------
Organization
The required management changes for the Top 150 executives have been accelerated
in recent months and are nearing completion. Since December 2012, a number of
important appointments have been made, including the GMs of the five largest
retail countries in Western Europe. 60% of the Top 150 positions will have been
aligned by the end of April.
Strategic reorientation Out of Home
The Company has initiated a strategic reorientation to create a more efficient
Out of Home structure, drive operational effectiveness and create a more
compelling and complete product portfolio. Focus will be on the segment's key
markets and on maximizing the interaction with the retail business. The use of
the global distribution network will be optimized to gain a greater marketplace
for its proprietary liquid technology and increase the leverage of its key
brands. Sub-standard markets will either be optimized or exited to enhance the
segment's profitability levels.
Operational effectiveness will be improved by increased focus on sales
effectiveness and excellent customer service levels and by further optimizing
the segment's cost structure. The Company will create a more compelling and
complete product portfolio by developing new concepts that capitalize on its
strong liquid technology, by launching capsules and a new espresso offer for
BARECA and offices, and by an increased focus on Tea.
This complete overhaul will create a clear competitive advantage and will
contribute to the growth and profitability of the Out of Home segment.
Cost savings program Fit for Growth
The Company's cost savings programs are well on track. The Company expects to
save ? 75 mln (annualized) by CY 15 of which between ? 25 - 30 mln is expected
to be achieved in the first twelve months of FY 13. In the first six months of
FY 2013, ? 13 mln was saved, mainly resulting from IT optimization, procurement
and blend optimization, as well as organizational efficiencies.
Operating Working Capital[4]
Operating working capital as a percentage of total sales improved by 130 bps to
13.2% in the first 6 months of FY 13, thereby freeing up ? 45 mln in cash. The
improvement of 130 bps was largely driven by a reduction in inventories, as days
of inventory outstanding dropped by more than 25% to 30 days in the first 6
months of FY 13. Good progress was also made in trade payables where average
payment terms increased by 15%.
As a result of this strong reduction in operating working capital, the Company
now expects to be able to reduce operating working capital to 10% of sales by
the end of calendar year 2013 and to 5% by the end of calendar year 2015.
FINANCIAL REVIEW SECOND QUARTER FISCAL YEAR 2013
--------------------------------------------------
------------------------------------------------------------
Change
Second Quarter FY 13 Sales (? mln) LFL[5] Reported
------------------------------------------------------------
Retail - W-Europe 333 (0.4)% (0.9)%
------------------------------------
Retail - Rest of World 206 10.0% 9.9%
------------------------------------
Out of Home 166 (1.2)% 2.1%
------------------------------------------------------------
Total segment sales 705 2.2% 2.8%
------------------------------------------------------------
Non-allocated[6] 13 n.a. n.a.
------------------------------------------------------------
Total sales 718 (2.2)%
------------------------------------------------------------
------------------------------------------------------------
Total segment sales increased 2.2% to ? 705 mln, on a like-for-like basis, in
the second quarter of FY 13. Volume performance improved to (0.8)% compared to
(2.7)% in the preceding quarter. This volume improvement was noticeable in
various markets in Retail, especially in Roast & Ground, which was partly offset
by a slight deterioration in volume performance in Out of Home. Pricing and
mix/other contributed 1.4% and 1.6% to overall growth. Acquisitions contributed
1.1% to the reported growth and currency translation effects negatively impacted
growth by (0.5)%. Total segment sales increased by 2.8%.
Retail - Western Europe
The segment Retail - Western Europe was able to keep volumes and sales
relatively stable. Positive mix growth was offset by negative pricing,
resulting in a sales decrease of (0.4)%, on a like-for-like basis, in the second
quarter. France and Spain continued to deliver strong sales growth and Belgium
witnessed a healthy pick up in volume and sales performance after having
experienced a declining trend for a number of years. In the Netherlands, Roast
& Ground and L'OR capsules performed according to expectations, but Senseo
underperformed mainly as a result of heavy competitive pressure during the
holiday season. In Germany, the corrective measures taken in the first quarter
have started to bear fruit, resulting in a marked improvement compared to the
preceding quarter.
L'OR capsules continued its strong performance across all four European markets
where the product is currently offered. In France and Spain a new "Intensity"
range was successfully launched. Market and consumption trends confirm the
Company's expectation that significant potential for further growth and market
share gains remains.
Senseo Sarista, the new and unique full-automatic bean-to-cup machine was
launched in the Netherlands in October. The concept is well received and the
initial consumer feedback on the quality and taste of the coffee is
encouraging. The Senseo Sarista machine was the #2 best-selling coffee machine
in the Dutch market, behind the Senseo Twist. Additional enhancements have been
identified which will be implemented before further roll out.
Retail - Rest of World
The segment Retail - Rest of World delivered a strong quarter with a sales
increase of 10.0% on a like-for-like basis in the second quarter. Australia
continued its superior performance driven by the success of its premiumization
strategy, most notably the recent roll out of the specialty instant range as
well as the introduction of the L'OR EspressO capsules under the Piazza d'Oro
brand. Volumes in Brazil were negatively impacted following the price increase
that was announced at the end of August to offset the increase in green coffee
Robusta prices in Brazil. The initial results of the recent relaunch of Senseo
Pilão and roll out of the upper mainstream Pilão range are also
encouraging. Poland delivered a very strong quarter both in volume and in
value, while Hungary is experiencing continued difficult market circumstances.
Out of Home
The segment Out of Home continued to show soft performance as the overall market
is in decline and customers have a tendency to be more price sensitive and to
opt for lower-cost solutions. Sales therefore showed a similar trend as
witnessed in the preceding quarters, decreasing by (1.2)% on a like-for-like
basis in the quarter. Volume and pricing continued to be under pressure which
was somewhat offset by positive mix growth. Markets are specifically
challenging in the Netherlands and Denmark, where volumes were under pressure,
most notably in roast & ground. The global distribution network delivered a
good performance.
The restructuring initiatives implemented in the Netherlands are well on track
delivering a more efficient organization with a clear focus on constant
improvement of customer services levels. The new management team in the
Netherlands, led by a new GM, has among others made a start to implement a more
compelling and complete product portfolio and to increase the effectiveness of
the sales force.
FINANCIAL REVIEW FIRST SIX MONTHS FISCAL YEAR 2013
----------------------------------------------------
-------------------------------------------- -----------------------------------
First Six Months Fiscal Year Sales LFL[7] Underl.[8] Underl.[8] LFL[7]
2013 (? mln) change EBIT (? mln) EBIT margin change
-------------------------------------------- -----------------------------------
Retail - W-Europe 624 0.1% 128 20.5% 430 bps
---------------- -----------------------------------
Retail - Rest of World 402 7.0% 26 6.3% (90) bps
---------------- -----------------------------------
Out of Home 317 (1.3)% 47 14.9% (100) bps
---------------- -----------------------------------
Total segment 1,344 1.6% 201
---------------- -----------------------------------
Non-allocated[9] 19 (19)
---------------- -----------------------------------
Total 1,363 182 13.5% 100 bps
-------------------------------------------- -----------------------------------
-------------------------------------------- -----------------------------------
Total segment sales increased 1.6% to ? 1,344 mln, on a like-for-like basis, in
the first six months of FY 13. This performance was driven by a +1.7% mix/other
growth and a price growth of +1.7%, driven by strong performance in Retail Rest
of World. Volumes declined by (1.8)%. Acquisitions contributed 1.1% to the
reported growth and currency translation effects negatively impacted growth by
(0.4)%. Total segment sales increased by 2.3% on a reported basis.
The gross margin increased 140 bps to 39.7%, excluding green coffee export
sales. The increase was largely driven by the substantial drop in green coffee
Arabica prices and by mix.
As part of the strategy, the Company increased A&P spend by 20% to support its
brands and product introductions. On the other hand, the Company kept the level
of other SG&A costs stable. As a result, the underlying EBIT margin increased
100 bps to 13.5% in the first six months of FY 13.
Normalized profit and normalized earnings per share amounted to ? 130 mln and
? 0.22, respectively. Reported profit, including the unusual items of which more
detail can be found on page 14, and reported earnings per share amounted to
? 92 mln and ? 0.15, respectively.
OTHER INFORMATION
-------------------
Unusual items
The Company recorded ? (55) mln of unusual items in the first six months of
FY 13. The unusual items mainly relate to restructuring costs and the
implementation of the new business model in February 2013. This higher level
than initially anticipated is a result of additional restructuring costs as well
as unanticipated costs such as, among others, legacy costs, additional spin-
related items and the investigation into the irregularities in Brazil in
Q1 FY 13. The Company now expects unusual items of around ? (100) mln for the
first twelve months of FY 13, which is more than initially anticipated due to
higher restructuring costs and other unforeseen costs (e.g. legacy costs,
Brazilian investigation). These unusual costs are expected to be partly offset
by an anticipated legacy income in the coming months.
Tax
The effective tax rate (ETR) was 29.9% in the first six months of FY 13,
compared to 58.9% in H1 FY 12. The ETR excluding unusual items was 29.6%. The
Company expects the ETR to be around 30% in FY 13 and around 25% from there
onwards.
Debt position
Total net debt decreased by ? 84 mln to ? 258 mln at December 31, 2012. Net
finance income amounted to ? 2 mln which was largely driven by pension finance
income, foreign exchange losses and other interest income. More details can be
found on page 10.
Equity
Equity amounted to ? 263 mln on December 31, 2012, compared to ? 318 mln on June
30, 2012. The reduction of ? 55 mln is mainly driven by an increase in
retirement benefit obligations. More details on the movements in Equity can be
found on page 11.
[1] Like-for-like (LFL) growth is at constant scope of consolidation and
constant exchange rates
[2] This represents a non-IFRS measure. The reason for the inclusion of the
measure along with the definition and reconciliation to the comparable IFRS
measure can be found in appendix 1 of this release
[3] On a like-for-like basis: at constant scope of consolidation and constant
exchange rates
[4] Operating working capital is explained and reconciled to the closest IFRS
measure in appendix 1.
[5] Like-for-like (LFL) growth is at constant scope of consolidation and
constant exchange rates
[6] Non-allocated sales represent green coffee export sales. The Company
announced in CY 12 to reduce these sales to around ? 45 mln from FY 13 onwards.
[7] Like-for-like (LFL) growth is at constant scope of consolidation and
constant exchange rates
[8] This represents a non-IFRS measure. The reason for the inclusion of the
measure along with the definition and reconciliation to the comparable IFRS
measure can be found in appendix 1 of this release.
[9] Non-allocated sales represent green coffee export sales. The Company
announced in CY 12 to reduce these sales to around ? 45 mln from FY 13 onwards.
Non-allocated EBIT mainly represents corporate overhead costs and EBIT
contribution from green coffee export sales, the latter being negligible in the
first six months of FY 13.
--------------------------------------------------------------------------------
A live and on-demand video web cast of the analyst & investor presentation on
Wednesday February 27, 2013, will be available from 10:00 am CET onwards. A
transcript of the conference call will be made available as soon as possible
after the end of the conference call. Please click here to go directly to the
webcast and transcript.
In addition, interviews with Jan Bennink and Michel Cup containing the key
messages, will be available on the Company's website, in video and text, on
February 27, 2013, from 7:30 am CET onwards, in the Investor Relations section
of the Company's website and on www.cantos.com.
--------------------------------------------------------------------------------
INCOME STATEMENT
------------------
(unaudited)
-----------------------------------------------------------------------------
(? mln) First Six Months Fiscal Year
2013 2012 change
-----------------------------------------------------------------------------
Sales 1,363 1,389 (1.9)%
Cost of sales (828) (881) (6.0)%
Gross profit 535 508 5.3%
Selling, general and administrative expenses (408) (403) 1.4%
Operating profit 127 105 20.3%
Net finance income* 2 65 n.a.
Share of profit from associate 3 1
Profit before income tax 131 171 (23.4)%
Income tax expense (39) (101) 61.1%
Profit for the period 92 70 31.4%
-----------------------------------------------------------------------------
* More information on net finance income can be found on page 10
----------------------------------------------
Earnings per share (?) 0.15
Number of shares at period end (mln) 595
Number of shares period average (mln) 595
----------------------------------------------
BALANCE SHEET
---------------
(unaudited)
----------------------------------------------------------------------
(? mln) Consolidated Consolidated
Dec. 31, 2012 June 30, 2012
----------------------------------------------------------------------
Non-current assets
Property, plant and equipment (PP&E) 370 377
Goodwill and other intangible assets 386 387
Investments in associate 15 13
Deferred income tax assets 126 91
Other non-current financial assets 61 47
Retirement benefit asset non-current 87 150
--------------------------------
1,044 1,065
--------------------------------
Current assets
Inventories 344 405
Income tax receivable 24 30
Trade and other receivables 389 422
Derivative financial instruments 2 22
Cash and cash equivalents 294 220
--------------------------------
1,053 1,099
--------------------------------
--------------------------------
Total assets 2,097 2,164
--------------------------------
Equity
Share capital and share premium 479 489
Other reserves (308) (171)
Retained earnings 92 -
--------------------------------
263 318
--------------------------------
Non-current liabilities
Borrowings 495 529
Retirement benefit obligations 140 109
Deferred income tax liabilities 62 47
Provisions 56 52
Derivative financial instruments 38 0
Other non-current liabilities 74 74
--------------------------------
864 811
--------------------------------
Current liabilities
Borrowings 58 28
Trade and other payables 603 631
Income tax payables 249 295
Provisions 44 66
Derivative financial instruments 16 15
--------------------------------
970 1,035
--------------------------------
--------------------------------
Total equity and liabilities 2,097 2,164
----------------------------------------------------------------------
STATEMENT OF CASH FLOWS
-------------------------
(unaudited)
------------------------------------------------------------------------
(? mln)
Consolidated
December 31, 2012
------------------------------------------------------------------------
Profit for the period 92
Adjustments:
Depreciation, amortization and impairments 50
Loss on sale of asset 2
Share of profit from associate (3)
Income tax expense 39
Interest income (16)
Interest expense 23
Pension expense (8)
Provision charges 12
Changes in operating assets and liabilities:
Inventories 55
Provisions for inventory write-downs (1)
Trade and other receivables (4)
Provisions for doubtful accounts 2
Trade and other payables (11)
Derivatives financial instruments 21
Other 1
Pension payments (29)
Payment of provisions (26)
Income tax payments (107)
--------------------
Net cash provided by operating activities 94
--------------------
Cash flow from investing activities
CAPEX - Purchases of property, plant and equipment (40)
CAPEX - Purchases of intangibles (9)
Loans made 2
Interest received 15
--------------------
Net cash used in investing activities (32)
--------------------
Cash flow from financing activities
Borrowing activities 24
Interest paid (18)
--------------------
Net cash provided by financing activities 6
--------------------
--------------------
Effect of exchange rate changes on cash 5
--------------------
--------------------
Net increase in cash and cash equivalents 74
--------------------
Cash and cash equivalents - beginning of period 220
Cash and cash equivalents - end of period 294
--------------------
Free cash flow * 54
--------------------
------------------------------------------------------------------------
*Free cash flow consists of the net cash provided by operating activities minus
capital expenditures related to PP&E
SELECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS
The interim financial statements and related selected notes have been prepared
in accordance with International Financial Reporting Standards ('IFRS'). The
unaudited condensed consolidated interim financial statements can be found on
the Company's website.
Net debt
------------------------------------------------------------
(? mln) Dec. 31, 2012 June 30, 2012
------------------------------------------------------------
Senior notes 490 522
Bank loans and other loans 63 36
Cash and cash equivalents* (294) (215)
------------------------------------------------------------
Subtotal net debt 258 342
------------------------------------------------------------
Cross currency swaps** 38 0
------------------------------------------------------------
Forex forwards 0 (3)
------------------------------------------------------------
Total net debt 297 340
------------------------------------------------------------
------------------------------------------------------------
*Includes ? 5 mln of bank overdrafts on June 30, 2012
**Cross-currency swap took effect in Sept. 2012. Until Sept 2012 the Senior
Notes where partially hedged using Forex-forward contracts resulting in a
? 3 mln gain.
Finance income and costs
-----------------------------------------------------------
(? mln) H1 FY 13 H1 FY 12
-----------------------------------------------------------
Interest expense (14) (10)
Interest income 6 13
Cross currency swaps 1 0
Interest income from loans Sara Lee 0 35
-----------------------------------------------------------
Net interest (expense)/income (8) 38
-----------------------------------------------------------
Net foreign currency result (11) 10
Pension finance income 21 18
-----------------------------------------------------------
Total net finance income 2 65
-----------------------------------------------------------
-----------------------------------------------------------
Movements in Equity
-----------------------------------------------------
(? mln)
-----------------------------------------------------
Equity at June 30, 2012 318
Profit for the period 92
Retirement benefit obligation related items (117)
Foreign currency translation (19)
Cash flow hedge reserve (8)
Settlement of share based payments (5)
Share based compensation expenses 2
--------
Total comprehensive income (55)
--------
--------
Equity at December 31, 2012 263
--------
-----------------------------------------------------
Appendix 1
EXPLANATION OF NON-IFRS FINANCIAL MEASURES
--------------------------------------------
Throughout this earnings release the Company presents certain measures that are
not recognized under IFRS or other generally accepted accounting principles
(GAAP). The Company has included these measures as they are measures the
Company uses in operating its business and because it believes that these
measures are useful to investors, and other users of its financial information,
in helping them to understand its underlying business performance. These
measures are not calculated in accordance with IFRS and may not be comparable to
similar measures presented by other companies. Accordingly, they should not be
considered as an alternative to the Company's reported IFRS measures.
The adjusted measures throughout this press release exclude items that are
income or charges (and related tax impact) that management believes have had, or
are likely to have, a significant impact on the earnings of the applicable
business segment or on the total Company for the period in which the item is
recognized, are not indicative of the Company's core operating results and
affect the comparability of underlying results from period to period. These
items may include, but are not limited to: charges for exit activities;
consulting and advisory costs; transformation programs; impairment charges;
spin-related costs; tax costs and benefits resulting from the disposition of a
business; impact of tax law changes; changes in tax valuation allowances and
favorable or unfavorable resolution of open tax matters based on the
finalization of tax authority examinations or the expiration of statutes of
limitations. Management highlights these items to provide greater transparency
into the underlying sales or profit trends of D.E MASTER BLENDERS 1753 or the
applicable business segment or discontinued operations and to enable more
meaningful comparability between financial results from period to
period. Additionally, D.E MASTER BLENDERS 1753 believes that investors desire
to understand the impact of these factors to better project and assess the
longer term trends and future financial performance of the corporation.
This release also contains certain underlying and normalized non-IFRS financial
measures that exclude from a financial measure computed in accordance with IFRS
the impact of the items described above and the impact of acquisitions and
dispositions, changes in foreign currency exchange rates and non-strategic
sales. Management believes that these non-IFRS financial measures reflect an
additional way of viewing aspects of D.E MASTER BLENDERS 1753's business that,
when viewed together with D.E MASTER BLENDERS 1753's financial results computed
in accordance with IFRS, provide a more complete understanding of factors and
trends affecting D.E MASTER BLENDERS 1753's historical financial performance and
projected future operating results, greater transparency of underlying profit
trends and greater comparability of results across periods. These non-IFRS
financial measures are not intended to be a substitute for the comparable IFRS
measures and should be read only in conjunction with the Company's consolidated
interim financial statements prepared in accordance with IFRS.
The definition of the Company's non-IFRS measures are as follows:
Like-for-like sales represents sales, excluding green coffee export sales,
calculated at the exchange rate for the most recent period and adjusted to
eliminate acquisitions to the extent they are not included in both periods.
Underlying EBIT represents profit for the period before share of profit from
associates, finance income / (costs), income tax expense and adjusted to exclude
income or charges that management believes are unrelated to its core operating
results and that are excluded in determining segment profits as well as items,
like for instance a part of the impact of adjustments related to Brazil in H1
12, that the Company deems to be non-recurring.
Normalized profit represents the profit for the period excluding amounts
excluded in computing underlying EBIT and excludes unusual finance income and
unusual tax expense. The finance income has been adjusted in H1 FY 12 for items
that will not recur after the separation from Sara Lee.
Normalized EPS represents the normalized profit divided by the outstanding
number of shares at year end.
Operating working capital represents working capital that is invested to operate
the business. Operating working capital is defined as the net amount of
inventories, trade receivables and trade payables.
The following tables provide reconciliation between these measures and the
Company's IFRS financial information.
Sales growth second quarter FY 13
-----------------------------------------------------------------------------
Retail Retail Out of
W-Europe Rest of World Home Total
-----------------------------------------------------------------------------
Volume (0.8)%
Price 1.4%
Mix/Other 1.6%
Like-for-like total segment sales change (0.4)% 10.0% (1.2)% 2.2%
Foreign exchange (0.5)% (2.6)% 1.7% (0.5)%
Acquisitions 0.0% 2.5% 1.6% 1.1%
Total segment sales change (0.9)% 9.9% 2.1% 2.8%
-----------------------------------------------------------------------------
Sales growth first six months FY 13
-----------------------------------------------------------------------------
Retail Retail Out of
W-Europe Rest of World Home Total
-----------------------------------------------------------------------------
Volume (1.8)%
Price 1.7%
Mix/Other 1.7%
Like-for-like total segment sales change 0.1% 7.0% (1.3)% 1.6%
Foreign exchange (0.3)% (2.8)% 1.9% (0.4)%
Acquisitions 0.0% 2.2% 1.8% 1.1%
Total segment sales change (0.2)% 6.4% 2.4% 2.3%
-----------------------------------------------------------------------------
Reconciliation of EBIT and underlying EBIT
-------------------------------------------------------- ------------------
(? mln) Margin
H1 FY 13 H1 FY 12 H1 FY 13 H1 FY 12
-------------------------------------------------------- ------------------
-------------------
Profit for the period 92 70
-------------------
Income tax expense 39 101
-------------------
Profit before income tax 131 171
-------------------
Net finance income (2) (65)
Share of profit from associate (3) (1)
------------------- ------------------
Operating Profit 127 105 9.3% 7.6%
------------------- ------------------
Adjustments:
Restructuring charges 15 56
New business model 6 -
Impairment 10 6
Other 24 0
-------------------
Total adjustments to Operating Profit 55 62
-------------------
Adjusted EBIT 182 168
-------------------
Green coffee export 0 (6)
Other items Brazil - 2
------------------- ------------------
Underlying EBIT 182 164 13.5% 12.5%
------------------- ------------------
-------------------------------------------------------- ------------------
Reconciliation of normalized profit
-------------------------------------------------------------- ----------
(? mln) H1 FY 13 Per share
-------------------------------------------------------------- ----------
---------- ----------
Profit for the period attributable to equity holders 92 0.15
---------- ----------
EBIT adjustments (net of tax) 39
----------
Total adjustments to profit 39
---------- ----------
Normalized profit 130 0.22
---------- ----------
-------------------------------------------------------------- ----------
Reconciliation of operating working capital
---------------------------------------------------------------------------
(? mln) Dec. 31, 2012 June 30, 2012
---------------------------------------------------------------------------
Inventories 344 405
Trade receivables 309 282
Trade payables (293) (282)
----------------------------
Operating working capital 360 405
----------------------------
----------------------------
Operating working capital as a % of total sales 13.2% 14.5%
----------------------------
---------------------------------------------------------------------------
Appendix 2
DISCLAIMER
------------
The statements contained in this document that are not historical facts are
forward-looking statements within the meaning of the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995. In addition, from
time to time, in oral and written statements, representatives of D.E MASTER
BLENDERS 1753 (the Company) discuss their expectations by making forward-looking
statements regarding the Company. Forward-looking statements are generally but
not always preceded by terms such as "intends", "expects", "projects",
"anticipates", "likely" or "believes". Forward-looking statements represent only
the Company's beliefs regarding the future many of which are by their nature
inherently uncertain. The Company's actual results may differ, possibly
materially, from those expressed or implied in the forward-looking
statements. Consequently, the Company wishes to caution readers not to place
undue reliance on any forward-looking statements. Among the factors that could
cause the Company's actual results to differ from such forward-looking
statements are those described in the Annual Report on Form 20-F filed by the
Company with the Securities and Exchange Commission. The Company undertakes no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be required
by applicable law.
It is to be noted that totals in this report might deviate from the sum of the
individual inputs due to rounding.
Full Press Release PDF:
http://hugin.info/152637/R/1681343/549650.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: D.E MASTER BLENDERS 1753 via Thomson Reuters ONE
[HUG#1681343]
Unternehmensinformation / Kurzprofil:
Datum: 27.02.2013 - 07:32 Uhr
Sprache: Deutsch
News-ID 233702
Anzahl Zeichen: 52400
contact information:
Town:
Amsterdam
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 178 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"D.E MASTER BLENDERS 1753: Results First Six Months Fiscal Year 2013"
steht unter der journalistisch-redaktionellen Verantwortung von
D.E MASTER BLENDERS 1753 (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
