Refresco Gerber realizes strong growth in co-packing driving improved adjusted net profit
(Thomson Reuters ONE) -
Second quarter highlights
Key indicators:
* Second quarter volume of 1,672.2 million litres shows organic growth of
0.8% compared to the same period last year (Q2 2014: 1,659.7 litres).
* The key indicator of Refresco Gerber's performance, gross profit margin per
litre in euro cents, increased to 14.2 euro cents (Q2 2014: 14.0 euro
cents), maintaining the levels of Q1.
* Increased adjusted EBITDA of ?67.6 million compared to ?66.6 million in the
same period last year.
* Revenue - where change of input prices are passed on to customers - showed a
slight decrease to ?548.4 million compared to the same period last year (Q2
2015: ?550.2 million).
* Adjusted for additional refinancing expenses and restructuring costs, net
profit amounted to ?29.0 million compared to ?25.3 million in the same
period last year. On an actual basis net profit amounted to ?5.4 million (Q2
2014: ?23.9 million).
* Adjusted EPS amounted to 35.7 euro cents compared to 31.1 euro cents in the
same quarter last year.
* Refinancing fully completed as at the end of June 2015; repayment and
replacement of an amount of ?660.0 million in financing to a new term loan
of ?522.0 million and an undrawn ?150.0 million RCF.
* With a net debt of ?520.7 million at the end of June 2015, net debt ratio,
based on LTM adjusted EBITDA, amounted to 2.4 compared to a ratio of 3.8 at
the end of June 2014.
Key figures
(x 1 million euro unless Q2 2015 Q2 2014 HY 2015 HY 2014
stated otherwise)
un-audited
Sales in litres (millions of
litres) 1,672.2 1,659.7 3,049.5 3,012.6
Revenue 548.4 550.2 1,006.6 1,009.2
Gross profit margin per litre
(euro cents) 14.2 14.0 14.2 13.9
Adjusted EBITDA¹ 67.6 66.6 104.7 98.3
IPO related (and other one-
time costs) 0.7 0.0 20.5 0.0
Operating profit 38.4 45.5 35.1 55.4
Adjusted operating profit 47.0 45.9 63.7 57.0
Exceptional financing costs 21.9 0.0 21.9 0.0
Net profit / (loss) 5.4 23.9 (9.9) 21.9
Adjusted net profit / (loss) 29.0 25.3 31.6 25.1
EPS (euro cents) - pro forma 6.7 32.2 (12.2) 29.8
Adjusted EPS² (euro cents) -
pro forma 35.7 31.1 40.6 28.8
Net debt ratio (net debt/LTM
adjusted EBITDA) 2.4 3.8
(1) Adjusted EBITDA is not a measure of our financial performance under IFRS. We
apply adjusted EBITDA to exclude the effects of certain exceptional charges that
we believe are not indicative of our underlying operating performance. Such
adjustments relate primarily to substantial one-off restructurings, costs
relating to acquisitions or disposals, and refinancing and IPO relating costs.
(2) Adjusted EPS has been calculated based upon adjusted net profit, which
excludes the costs related to the IPO, exceptional financing costs,
restructuring costs and relating tax effect. The number of issued shares has
been determined on 81.2 million for Q2 2015. For Q1 2015 this number was
determined on a pro forma basis of 74.3 million shares. YTD 2015 the number of
shares was determined on a pro forma basis of 77.9 million. For all calculations
in 2014 the number of shares has been determined on a pro forma basis of 74.3
million.
CEO Hans Roelofs:
"In the first half of 2015 we realized a 1.2% organic growth in volume, in line
with the general market trend. Growth was mainly driven by our Co-Packing
business where we realized an increase of 12.5% in volume compared to the first
half of last year. This increase in Co-Packing has enabled us to maintain a
strong gross profit margin per litre, the key indicator in development of our
business.
The second and third quarters, based on volume, are traditionally our strongest
period of the year, driven by summer weather demand. Typically the average gross
profit margin per litre comes down slightly due to a shift in product mix. This
year the summer weather did not come through until the end of June. With the
absence of the product mix shift this has resulted in a slightly disappointing
market volume development and a better gross profit margin per litre.
Revenue showed a slight decrease. Change in revenue is mostly driven by
fluctuations in input prices which are passed on to customers, and is therefore
not a representative indicator for the development of our business. Volumes
developed positively and we maintained gross profit margin per litre at Q1
levels, resulting in a solid adjusted EBITDA for the period under review.
After the successful conclusion of our IPO last March, we were able to refinance
our high yield bond related debt, lowering finance costs considerably and
thereby creating headroom for the continued execution of our growth strategy.
With a healthy pipeline of potential acquisition targets we are well positioned
to further pursue our buy & build strategy going forward.
As mentioned, for the first half of 2015 we were able to maintain a strong gross
profit margin per litre. Due to product mix effects we envisage this to come
down slightly in the second half. For the full year 2015 we reconfirm our
guidance, anticipating a low to mid-single digit growth of volume with gross
profit margin per litre coming down marginally compared to the full last year
(2014: 14.2 euro cents)."
Group volume and revenue development
In a soft market we were able to realize organic volume growth of 0.8% for the
quarter. Revenue, of which the change in input prices is passed on to customers,
showed some decrease. In the second quarter revenue of ?548.4 million was
realised compared to ?550.2 million in Q2 2014.
Development Co-Packing versus Private Label
In the second quarter of 2015, the share of volume in Co-Packing (CP) business
compared to the share of volume in our Private Label (PL) business significantly
increased. This resulted in a 21.5% CP share (Q2 2014: 18.5%) versus a 78.5% PL
share (Q2 2014: 81.5%).
Volume and revenue by location of sales
Overall Q2 volume showed an increase of 0.8% to 1,672.2 litres compared to the
same period last year, with most regions showing a positive development.
The most significant growth in volume in the quarter was realised in Italy, this
was mainly driven by the roll out of new contract wins for Ferrero, partly
offset by a slight decrease in retail sales compared to the same period last
year. In France, North East Europe and Iberia, volume increased with revenue
decreasing due to product mix effects. Volume in the Benelux decreased, driven
by a continuing weak retail market and adverse weather conditions in Northern
Europe during April and May. Volumes in Germany were also impacted as a
consequence of the weather conditions. In the UK volumes were slightly up with
revenue positively impacted by currency effects.
Sales in litres
(x 1 million) Q2 2015 Q2 2014 HY 2015 HY 2014
un-audited
Benelux 282.9 291.6 511.9 534.4
Germany 382.6 399.7 737.1 741.7
France 260.6 250.7 468.9 451.8
UK 165.2 162.4 309.2 316.3
Iberia 148.7 144.5 270.9 259.6
Italy 255.4 238.3 435.2 416.5
North East Europe 176.8 172.5 316.3 292.3
Total volume 1,672.2 1,659.7 3,049.5 3,012.6
Revenue by location of
sales Q2 2015 Q2 2014 HY 2015 HY 2014
(x 1 million euro)
un-audited
Benelux 114.2 119.7 203.4 219.0
Germany 116.1 119.4 220.6 223.0
France 87.5 89.5 161.6 163.8
UK 98.5 93.0 183.4 179.9
Iberia 39.9 41.6 73.6 74.9
Italy 45.4 43.6 75.9 73.8
North East Europe 38.9 41.1 74.2 72.5
Holding³ 7.9 2.3 13.9 2.3
Total revenue 548.4 550.2 1,006.6 1,009.2
(3) Holding revenue mainly relates to the sale of packaging and raw materials to
the divested Waibstadt manufacturing site which has been concluded by the end of
July 2015.
Margin development
Gross profit margin per litre for the second quarter of 2015 amounted to 14.2
euro cents compared to 14.0 euro cents in the same period last year. This was
driven by a positive product mix.
Results of operations
Operating costs in Q2 2015 amounted to ?199.8 million compared to ?186.3 million
in the same period last year. The operating costs were affected by the impact of
the announced closure of a plant in Germany. Adjusted operating profit amounted
to ?47.0 million compared to ?45.9 million in Q2 2014. Actual operating profit
was ?38.4 million (Q2 2014: ?45.5 million), which was mainly the result of the
restructuring costs and impairment for the closure of a German plant.
Reconciliation of operating profit to adjusted EBITDA
Adjusted EBITDA in the second quarter amounted to ?67.6 million a slight
increase compared to the same period last year (Q2 2014: ?66.6 million).
(x 1 million euro) Q2 2015 Q2 2014 HY 2015 HY 2014
un-audited
Operating profit 38.4 45.5 35.1 55.4
Depreciation, amortization and impairment costs 23.9 20.7 44.3 41.3
EBITDA 62.3 66.2 79.4 96.7
Merger and restructuring costs 0.2 0.4 0.7 1.6
IPO related costs 0.7 0.0 20.5 0.0
Restructuring Germany 3.1 0.0 3.1 0.0
Refinancing related costs 1.3 0.0 1.3 0.0
Sales of fixed assets 0.0 0.0 (0.3) 0.0
Adjusted EBITDA 67.6 66.6 104.7 98.3
Finance result
Finance expenses increased to ?30.0 million compared to ?12.8 million in the
same period under review last year. The additional finance costs made in the
quarter under review are fully related to the refinancing announced in April
2015.
(x 1 million euro) Q2 2015 Q2 2014 HY 2015 HY 2014
un-audited
Interest expenses 8.1 12.8 20.2 25.5
Refinancing costs 21.9 0.0 21.9 0.0
Interest receivables 0.0 0.0 (0.3) (0.1)
Net finance result 30.0 12.8 41.8 25.4
Reconciliation of net result to adjusted net result
Adjusted for amongst others additional finance expenses and restructuring costs,
net profit amounted to ?29.0 million compared to a net profit of ?25.3 million
in the same period last year. Actual net profit for the second quarter was ?5.4
million compared to a net profit of ?23.9 million for the second quarter of
2014.
(x 1 million euro unless stated otherwise) Q2 2015 Q2 2014 HY 2015 HY 2014
un-audited
Net profit / (loss) 5.4 23.9 (9.9) 21.9
Non-controlling interest 0.0 0.0 0.4 0.1
Profit attributable to shareholders 5.4 23.9 (9.5) 22.0
Result of discontinued business 0.0 1.1 0.0 1.9
Merger and restructuring costs 0.2 0.4 0.7 1.6
IPO related costs 0.7 0.0 20.5 0.0
Restructuring Germany 3.1 0.0 3.1 0.0
Refinancing related costs 1.3 0.0 1.3 0.0
Additional refinancing expenses 21.9 0.0 21.9 0.0
Sales of fixed assets 0.0 0.0 (0.3) 0.0
Impairment plant Germany 3.3 0.0 3.3 0.0
Tax effect (6.9) (0.1) (9.4) (0.4)
Adjusted net profit / (loss) 29.0 25.3 31.6 25.1
Pro forma no. of shares (x1 million) 81.2 74.3 77.9 74.3
EPS (euro cents) - pro forma 6.7 32.2 (12.2) 29.8
Adjusted EPS profit/ (loss) - pro forma (euro
cents) 35.7 31.1 40.6 28.8
Balance sheet and financial position as of June 30, 2015
Balance sheet total amounted to ?1,643.5 million compared to ?1,643.1 million at
December 31, 2014.
As of June 30, 2015, net debt amounted to ?520.7 million consisting of ?556.8
million in loans and borrowings and ?36.1 million cash and cash equivalents,
compared to a net debt of ?658.7 million on June 30, 2014.
At the end of June 2015, net debt ratio, based on LTM adjusted EBITDA, amounted
to 2.4 compared to a ratio of 3.8 at the end of June 2014.
Capex spending for the quarter was ?19.9 million compared to ?12.4 million in
the same period last year, this increase was mainly attributable to investments
for new contracts.
Working capital increased by ?33.1 million for the quarter, mainly due to the
seasonal nature of our business. Working capital for the half year period
increased by ?19.4 million.
Outlook
As mentioned previously and based on the current market outlook, we expect
volume for the year to grow organically at low to mid-single digit levels
compared to the full year 2014 volume (FY 2014: 6.0 billion litres). As we have
seen raw material prices coming down, organic revenue growth will be slightly
below organic volume growth.
We expect that, based on the current market and competitive environment, gross
profit margin per litre for 2015 will come down marginally compared to the gross
profit margin per litre over 2014 (? 14.2 euro cents), due to product mix
effects. These product mix effects are driven by an increase in sales of lower
margin products.
For further information, please contact:
Claire Verhagen, tel. +31 10 440 5165
claire.verhagen(at)refrescogerber.com
Next financial reporting
Refresco Gerber N.V.'s third quarter 2015 results will be published November
12, 2015.
Notes to the editors:
About Refresco Gerber N.V.
Refresco Gerber (Euronext: RFRG) is the leading European bottler of soft drinks
and fruit juices for retailers and branded players with production in the
Benelux, France, Germany, Iberia, Italy, the UK, Poland and Finland. The company
realized full year volumes and revenue of circa 6.0 billion litres and circa
?2.0 billion, respectively. Refresco Gerber offers an extensive range of product
and packaging combinations from 100% fruit juices to carbonated soft drinks and
mineral waters in carton, PET, Aseptic PET, cans and glass.
Focused on innovation, Refresco Gerber continuously searches for new and
alternative ways to improve the quality of its product and packaging
combinations in line with consumer and customer demand, environmental
responsibilities and market demand. Refresco Gerber is headquartered in
Rotterdam, the Netherlands and employs circa 4,100 staff.
Refresco Gerber second quarter 2015 results:
http://hugin.info/169419/R/1945256/705181.pdf
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Source: Refresco Gerber via GlobeNewswire
[HUG#1945256]
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Datum: 13.08.2015 - 07:30 Uhr
Sprache: Deutsch
News-ID 413369
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