D.E MASTER BLENDERS 1753 : First Twelve Months Fiscal Year 2013
(Thomson Reuters ONE) -
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Key Highlights First Twelve Months Fiscal Year 2013
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· Total segment sales stable on like-for-like((([1]))) basis; reported
segment sales down (0.5)%
· Gross margin improved 270 bps to 40.4%
· A&P investments up 26%
· Underlying([2]) EBIT margin up 180 bps to 13.8%
· Normalized(3) earnings per share at ? 0.47
· Operating working capital improved 590 bps to 8.6% of sales
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First Twelve
(? mln) Months Change
FY 13 FY 12 LFL.(2) Reported
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Total segment sales 2,646 2,661 0.0% (0.5)%
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Reported sales 2,680 2,795 n.a. (4.1)%
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Underlying EBIT(3) 366 327 15.4% 12.0%
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Underlying EBIT margin(3) 13.8% 12.3% 180 bps 150 bps
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Normalized profit for the period(3) 277 267
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Normalized EPS(3) (?) 0.47 0.45
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Profit for the period 196 132
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EPS (?) 0.33 0.22
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FINANCIAL REVIEW FIRST TWELVE MONTHS FISCAL YEAR 2013
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Underl.([4]) LFL(4)
First Twelve Months Sales (? LFL([3]) Underl.(5
Fiscal Year 2013 mln) change EBIT (? mln) )EBIT margin change
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Retail - W-Europe 1.228 (1.9)% 252 20.5% 370 bps
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Retail - Rest of
World 781 5.7% 46 5.9% (100) bps
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Out of Home 637 (2.6)% 95 15.0% (20) bps
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Total segment 2,646 0.0% 394
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Non-allocated([5]) 34 (28)
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Total 2,680 366 13.8% 180 bps
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Total segment sales remained stable at ? 2,646 mln, on a like-for-like basis, in
the first twelve months of FY 13. This performance was driven by an improvement
of mix/other of 2.2%, while price contributed 0.1%. Volumes were down
2.3%. Total reported sales decreased by 0.5%, with acquisitions contributing
0.6% while currency translation effects had a negative impact of 1.1%.
The gross margin increased 270 bps to 40.4%, excluding green coffee export
sales. This increase was largely driven by the substantial drop in green coffee
Arabica prices and mix.
A&P spend went up by 26% to support our brands and product introductions across
the entire portfolio. SG&A costs went down by 3% driven by "Fit for Growth",
the cost optimization program that was launched in 2012, delivering ? 27 mln of
cost savings in the first twelve months of FY 13. The resulting underlying EBIT
margin significantly improved by 180 bps to 13.8%, on a like-for-like basis.
Normalized profit and normalized earnings per share amounted to ? 227 mln and
? 0.47, respectively. Reported profit, including the unusual items, and reported
earnings per share amounted to ? 196 mln and ? 0.33, respectively.
Operating working capital([6]) as a percentage of total sales improved by 590
bps to 8.6% freeing up ? 154 mln in cash. The improvement of 590 bps was
largely driven by a reduction in inventories with good progress made in trade
payables and trade receivables.
FINANCIAL REVIEW FOURTH QUARTER SALES FISCAL YEAR 2013
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Fourth Quarter FY 13 Change
Sales (? mln) LFL([7]) Reported
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Retail - W-Europe 311 0.7% (0.8)%
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Retail - Rest of World 195 2.5% (0.8)%
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Out of Home 163 (3.9)% (2.8)%
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Total segment sales 669 0.1% (1.3)%
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Non-allocated([8]) 5 n.a. n.a.
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Total sales 674 (3.3)%
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Total segment sales increased 0.1% to ? 669 mln, on a like-for-like basis, in
the fourth quarter of FY 13. This strong rebound, compared to the decline of
(3.2)% in the preceding quarter, can be attributed to the performance of Retail
Western Europe returning to growth. The Company's sales performance had a
strong mix/other development of 3.7%, reflecting the success of our focus on
premiumization. Volume performance improved to a decrease of only (1.4)%,
versus (4.6)% in the third quarter. Price, however, had a negative effect of
(2.2)%, reflecting the increased pressure to lower consumer prices, as the
result of the substantially lower green coffee prices. Reported total segment
sales decreased by (1.3)% driven by a negative currency translation of (1.5)%,
with acquisitions adding 0.1%
OTHER INFORMATION
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Unusual items
The Company recorded ? (111) mln of unusual items in the first twelve months of
FY 13. The unusual items mainly relate to restructuring costs, the
implementation of the new business model in February 2013 and costs relating to
the public offer by Oak Leaf B.V. for all the issued and outstanding ordinary
shares in the capital of D.E MASTER BLENDERS 1753 N.V.
INCOME STATEMENT
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(unaudited)
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(? mln) First Twelve Months
2013 2012 change
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Sales 2,680 2,795 (4.1)%
Cost of sales (1,608) (1,787) (10.0)%
Gross profit 1,072 1,008 6.3%
Selling, general and administrative expenses (817) (898) (9.0)%
Operating profit 255 110 132.1%
Net finance income 12 150 (92.1)%
Share of profit from associate 4 0 -
Profit before income tax 271 260 4.4%
Income tax expense (75) (127) (41.5)%
Profit/(loss) from discontinued operations (0) -
Profit for the period 196 132 48.6%
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(? mln) First Twelve Months
2013 2012 change
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Earnings per share (?) 0.33 0.22 48.6%
Number of shares at period end (mln) 595 595
Number of shares period average (mln) 595 595
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BALANCE SHEET
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(unaudited)
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(? mln) Consolidated Consolidated
June 30, 2013 June 30, 2012
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Non-current assets
Property, plant and equipment (PP&E) 374 377
Goodwill and other intangible assets 373 387
Investments in associate 15 13
Deferred income tax assets 119 91
Other non-current financial assets 65 47
Retirement benefit asset non-current 140 150
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1,086 1,065
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Current assets
Inventories 284 405
Income tax receivable 15 30
Trade and other receivables 341 422
Derivative financial instruments 5 22
Cash and cash equivalents 442 220
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1,088 1,099
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Total assets 2,173 2,164
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Equity
Share capital and share premium 477 489
Other reserves (305) (171)
Profit for the period 196 -
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369 318
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Non-current liabilities
Borrowings 516 529
Retirement benefit obligations 94 109
Deferred income tax liabilities 61 47
Provisions 52 52
Derivative financial instruments 40 0
Other non-current liabilities 67 74
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831 811
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Current liabilities
Borrowings 23 28
Trade and other payables 661 631
Income tax payables 248 295
Provisions 37 66
Derivative financial instruments 3 15
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974 1,035
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Total equity and liabilities 2,173 2,164
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STATEMENT OF CASH FLOWS
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(unaudited)
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(? mln) Consolidated
June 30, 2013
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Profit for the period 196
Adjustments:
Depreciation, amortization and impairments 101
Loss on sale of asset 7
Share of profit from associate (4)
Income tax expense 75
Interest income (22)
Interest expense 40
Pension expense (22)
Provision charges 6
Changes in operating assets and liabilities:
Change in Operating Working Capital 154
Change in Other Working Capital 29
Derivatives financial instruments 45
Other (39)
Pension payments (77)
Payment of provisions (46)
Income tax payments (118)
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Net cash provided by operating activities 324
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Cash flow from investing activities
CAPEX - Purchases of property, plant and equipment (99)
CAPEX - Purchases of intangibles (12)
Loans made 16
Interest received 21
Dividends received 2
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Net cash used in investing activities (72)
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Cash flow from financing activities
Borrowing activities 4
Interest paid (36)
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Net cash provided by financing activities (32)
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Effect of exchange rate changes on cash 2
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Net increase in cash and cash equivalents 222
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Cash and cash equivalents - beginning of period 220
Cash and cash equivalents - end of period 442
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Free cash flow * 225
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*Free cash flow consists of the net cash provided by operating activities minus
capital expenditures related to PP&E
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.
Normalized profit represents the profit for the period excluding amounts
excluded in computing underlying EBIT and excludes unusual finance income and
unusual tax expense.
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 fourth quarter FY 13
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Retail W-Europe Retail Rest of
World Out of Home Total
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Volume (1.4)%
Price (2.2)%
Mix/Other 3.7%
Like-for-like total
segment sales change 0.7% 2.5% (3.9)% 0.1%
Foreign exchange (0.3)% (4.6)% (0.3)% (1.5)%
Change in scope* (1.2)% 1.3% 1.4% 0.1%
Total segment sales
change (0.8)% (0.8)% (2.8)% (1.3)%
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* As a result of acquisitions/divestitures and inter-segment reclassifications
Sales growth first twelve months FY 13
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Retail W-Europe Retail Rest of
World Out of Home Total
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Volume (2.3)%
Price 0.1%
Mix/Other 2.2%
Like-for-like total
segment sales change (1.9)% 5.7% (2.6)% 0.0%
Foreign exchange 0.1% (4.5)% 0.5% (1.1)%
Change in scope* (1.1)% 1.7% 2.0% 0.6%
Total segment sales
change (2.9)% 2.9% (0.1)% (0.5)%
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* As a result of acquisitions/divestitures and inter-segment reclassifications
Reconciliation of EBIT and underlying EBIT for the first twelve months FY 13
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First Twelve Margin
(? mln) Months
FY 13 FY 12 FY 13 FY 12
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Profit for the period 196 132
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Income tax expense 75 127
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Profit before income tax 271 260
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Net finance income (12) (150)
Share of profit from associate (4) (0)
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Operating Profit 255 110 9.5% 3.9%
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Adjustments:
Restructuring charges 40 121
Termination Senseo agreement - 55
New business model 12 -
Impairment 12 21
Transaction costs Offer Oak Leaf B.V. 39 -
Other 8 15
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Total adjustments to Operating Profit 111 212
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Adjusted EBIT 366 322
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Green coffee export 0 (6)
Other items Brazil - 11
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Underlying EBIT 366 327 13.8% 12.3%
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Reconciliation of normalized profit
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First 12 months
(? mln) FY 13 Per share FY 12 Per share
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Profit for the period attributable 0.33 0.22
to equity holders 196 132
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EBIT adjustments (net of tax) 80 167
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Adjustments to Finance
income/(costs) - (net of tax) (79)
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Tax adjustments 46
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Total adjustments to profit 80 135
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Normalized profit 277 0.47 267 0.45
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Reconciliation of operating working capital
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(? mln) June 30, 2013 June 30, 2012
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Inventories 284 405
Trade receivables 260 282
Trade payables (314) (282)
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Operating working capital 231 405
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Operating working capital as a % of total sales 8.6% 14.5%
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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.
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[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] Like-for-like (LFL) growth is at constant scope of consolidation and
constant exchange rates
[4] 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.
[5] 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 FY
13.
[6] Operating working capital is explained and reconciled to the closest IFRS
measure in appendix 1.
[7] Like-for-like (LFL) growth is at constant scope of consolidation and
constant exchange rates
[8] 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.
First Twelve Months Fiscal Year 2013:
http://hugin.info/152637/R/1724513/574874.pdf
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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#1724513]
Unternehmensinformation / Kurzprofil:
Datum: 23.08.2013 - 08:31 Uhr
Sprache: Deutsch
News-ID 290397
Anzahl Zeichen: 37257
contact information:
Town:
Amsterdam
Kategorie:
Business News
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