BONDUELLE - 2016-2017 Annual Results: a key milestone in the VegeGo! 2025's ambition
(Thomson Reuters ONE) -
BONDUELLE
A French SCA (Partnership Limited by Shares) with a capital of 56,000,000 Euros
Head Offices: La Woestyne 59173 Renescure, France
Business registration number: 447 250 044 (Dunkerque Registrar of Businesses)
2016-2017 Annual Results
A key milestone in the VegeGo! 2025's ambition
* Organic growth at the higher end of the target range and turnover exceeding
? 2 billion
* Increase in current operating result, higher than the annual objective set
* Increase in net result at + 11.4%
* Transforming integration of Ready Pac Foods
* Substantial strengthening of the group's financial structure
* Strong growth in the activity and profitability expected for 2017-2018
On the 29th of September 2017, the Supervisory Board, under the chairmanship of
Martin Ducroquet, reviewed the statutory and consolidated financial statements
for FY 2016 - 2017 as presented by the Executive Board and certified by the
company's statutory Auditors.
+--------------------------+-----------+-----------+------------+
| Consolidated Accounts | 2016-2017 | 2015-2016 | Variations |
| (in ? millions) | | | |
+--------------------------+-----------+-----------+------------+
| Turnover | 2,288.1 | 1,967.7 | +16.3% |
+--------------------------+-----------+-----------+------------+
| Current Operating Result | 108.3 | 103.5 | +4.6% |
+--------------------------+-----------+-----------+------------+
| Net Result | 59.8 | 53.7 | +11.4% |
+--------------------------+-----------+-----------+------------+
FY 2016-2017 reflected, once again, for the Bonduelle Group, in a solid organic
growth both in terms of turnover and current operating profitability, despite
operating in a challenging environment (sluggishness of the consumption in
Europe, economic crisis in emerging countries and difficult harvests for 2016).
This remarkable performance, confirming the group's strong resilience, is
coupled, this FY, with the acquisition of Ready Pac Foods. This major
acquisition - the largest ever in terms of size in the group's history - has
profoundly changed the group's profile, strengthening its international
expansion and highlighting, by the development of its ready-to-eat segment, the
search for new sources of growth that are capital employed efficient.
The on-going performance increase of the group's historical business scope and
the full-year contribution from Ready Pac Foods will result for FY 2017-2018 in
strong growth both in terms of turnover and profitability, in line with the
VegeGo! 2025 plan's objectives.
Global Turnover
Solid organic growth and very substantial external growth
Activity by Geographic Region
+---------------------+---------+---------+----------------+-------------------+
| Total consolidated | | | Variation | Variation |
| turnover |2016-2017|2015-2016|Reported figures| Like for like |
| (in ? million) | | | | basis((1)) |
+---------------------+---------+---------+----------------+-------------------+
|Europe Zone | 1,277.3 | 1,274.9 | 0.2% | 0.2% |
+---------------------+---------+---------+----------------+-------------------+
|Non-Europe Zone | 1,010.8 | 692.8 | 45.9% | 7.1% |
+---------------------+---------+---------+----------------+-------------------+
|Total | 2,288.1 | 1,967.7 | 16.3% | 2.7% |
+---------------------+---------+---------+----------------+-------------------+
Activity by Operating Segments
+---------------------+---------+---------+----------------+-------------------+
| Total consolidated | | | Variation | Variation |
| turnover |2016-2017|2015-2016|Reported figures| Like for like |
| (in ? million) | | | | basis((1)) |
+---------------------+---------+---------+----------------+-------------------+
|Canned | 984.2 | 959.3 | 2.6% | 1.2% |
+---------------------+---------+---------+----------------+-------------------+
|Frozen | 648.4 | 596.9 | 8.6% | 7.5% |
+---------------------+---------+---------+----------------+-------------------+
|Fresh processed | 655.5 | 411.5 | 59.3% | - 0.8% |
+---------------------+---------+---------+----------------+-------------------+
|Total | 2,288.1 | 1,967.7 | 16.3% | 2.7% |
+---------------------+---------+---------+----------------+-------------------+
Over FY 2016-2017 (1(st) of July 2016 - 30(th) of June 2017), the group's
turnover reached 2,288.1 million of Euro, an increase of + 16.3% on reported
figures. This performance reflects a solid organic growth (+ 2.7%), at the
higher range of the announced target (+ 2 to +3%), a positive effect of currency
fluctuations (+ 1.-%) and the consolidation of Ready Pac Foods as of the 21(st)
of March 2017.
Europe Zone
The Europe zone, representing 55.8 % of this FY turnover, returned to growth: +
0.2% both on reported figures and like for like basis((1)), driven by a dynamic
fourth quarter recording + 1.6%.
The lack of products due to the poor harvests observed in summer 2016 (cans and
frozen) and early 2017 (fresh-cut bagged salads) was partially offset by a sunny
spring promoting the consumption of canned corn and fresh prepared products.
Non-Europe Zone
The non-Europe zone recorded an increase of + 45.9% based on reported figures
and represents 44.2% of the turnover. This performance was fuelled by a solid
organic growth standing at + 7.1% coupled with a positive effect of currency
fluctuations of + 3.1% and a + 35.7% contribution from Ready Pac Foods over a
quarter. Ready Pac Foods, now Bonduelle Fresh Americas, also recorded very
strong growth over 12 months, hence continuing to improve its American market
penetration.
The strong performance of the canned and frozen segments in North America was
partially offset by the difficulties observed in emerging countries (namely in
Brazil and Russia). In Russia, the slight pickup in the economic recovery has
not yet been translated into an increase in food consumption. Thanks to a wide
offer of canned vegetables products and strength of its brands (Bonduelle and
Globus), the group has successfully managed to maintain its market share and
sales prices, hence its profitability.
Current Operating Profitability
Increase in current operating profitability
+------------------+--------------+--------------+--------------+--------------+
| (in ? millions) | 2016-2017 | 2015-2016 | Variation | Variation |
| | Reported | Reported | Reported |Like for like |
| | figures | figures | figures | basis((1)) |
+------------------+--------------+--------------+--------------+--------------+
|Turnover | 2,288.1 | 1,967.7 | + 16.3% | + 2.7% |
+------------------+--------------+--------------+--------------+--------------+
|Current Operating | 108.3 | 103.5 | + 4.6% | + 1.2% |
|Profitability | | | | |
+------------------+--------------+--------------+--------------+--------------+
|Current Operating | 4.7% | 5.3% | - 60 bp | - 10 bp |
|Margin | | | | |
+------------------+--------------+--------------+--------------+--------------+
For FY 2016-2017, the Bonduelle Group's current operating profitability stood at
108.3 million of Euro, an increase of + 4.6% based on reported figures.
The current operating profitability, excluding changes in scope of
consolidation, recorded 106.1 million of Euro, an increase of + 2.5% higher than
the objective announced in October 2016 and revised upwards in March 2017.
The increased caution on the group's cost structure, coupled with continuous
marketing-media investments and good performance of the brands of the group,
enabled to offset the negative impact of the poor harvests of summer 2016
(canned & frozen) and of early 2017 (salads) and to record, yet again, an
increase in profitability.
Net Result
Strong growth in net result
The net expense of non-recurring items stands at 8.1 million of Euro and
essentially includes the acquisition costs of Ready Pac Foods.
The net financial debt amounts to 18.2 million of Euro against 21.4 million of
Euro last financial year, the group benefited from its on-going deleveraging,
excluding the Ready Pac Foods acquisition, the latter only impacting on the last
quarter.
Given the result of the companies consolidated by equity method (+ 0.1 million
of Euro), an income tax expense of 22.3 million of Euro i.e. an effective tax
rate of 27.2%, stable over the period considered, the net result for this FY
stands at 59.8 million of Euro, an increase of + 11.4%, representing 2.6% of the
turnover and 3.1%, when excluding Ready Pac Foods, the dilutive impact on the FY
being linked to the acquisition costs.
Financial situation
Solid financial structure
The generation of cash-flows from the group's businesses, and the first results
of the approach: "Finance for Growth" optimisation of the capitals employed,
allow to record another growth of 100 bps on ROCCE((2)) of 11.5% and a strong
decrease of the group's net debt, its debt leverage((3)) stands at 1.67x against
2.47x on the 30(th) of June 2016, excluding the Ready Pac Foods acquisition.
After taking into account the acquisition debt, on a pro forma((4)) basis the
debt leverage((3)) stands at 3.1x highlighting the solid financial structure of
the group and its investment grade profile.
+-----------------+-----------+-----------+-----------+-----------+------------+
| | 30(th) of | 30(th) of | 30(th) of | 30(th) of | 30(th) of |
| | June 2013 | June 2014 | June 2015 | June 2016 | June 2017 |
+-----------------+-----------+-----------+-----------+-----------+------------+
|Net debt (in | 591.9 | 524.6 | 512.4 | 440.6 | 661.6 |
|millions of Euro)| | | | | |
+-----------------+-----------+-----------+-----------+-----------+------------+
|Gearing((5)) | 1.15 | 1.04 | 0.98 | 0.78 | 1.09 |
+-----------------+-----------+-----------+-----------+-----------+------------+
|Leverage | 3.27x | 2.95x | 2.73x | 2.47x | 3.1x((4)) |
|ratio((3)) | | | | | |
+-----------------+-----------+-----------+-----------+-----------+------------+
|Net debt (in | | | | | |
|millions of Euro)| 591.9 | 524.6 | 512.4 | 440.6 | 301.3 |
|acquisition | | | | | |
|excluded((6)) | | | | | |
+-----------------+-----------+-----------+-----------+-----------+------------+
|Gearing((5)) | | | | | |
|acquisition | 1.15 | 1.04 | 0.98 | 0.78 | 0.49 |
|excluded((6)) | | | | | |
+-----------------+-----------+-----------+-----------+-----------+------------+
|Leverage | | | | | |
|ratio((3) )) | 3.27x | 2.95x | 2.73x | 2.47x | 1.67x |
|acquisition | | | | | |
|excluded((6)) | | | | | |
+-----------------+-----------+-----------+-----------+-----------+------------+
Considering the group's operational profitability evolution and 2017-2018
outlooks, the General Management will request at the Shareholders' Meeting on
the 7(th) of December 2017, a dividend distribution of ? 0.45 per share, versus
? 0.43 last FY.
Highlights
Acquisition of Ready Pac Foods in the US
On the 21(st) of March 2017, the Bonduelle Group announced the acquisition of
Ready Pac Foods for an amount of 403 million US dollars, net of debt.
Based in California, Ready Pac Foods is the #1 producer of single-serve salad
bowls in the U.S. through its Bistro® range. Already well-established in the
healthy snacking segment, Ready Pac Foods is currently adding wraps and soup
kits to its offer. Ready Pac Foods is also a producer of fresh-cut products,
offering packaged salads, fresh-cut fruits, and mixed vegetables to its retail
and foodservice customers. With 4 production facilities located in Irwindale
(CA), Jackson (GA), Florence and Swedesboro (NJ), it employs circa 3,500 regular
employees. Ready Pac Foods generates approximately 870 million US dollars ((4))
of revenues and operates nationwide in the U.S.
This transaction is a key milestone in Bonduelle's strategic ambition VegeGo!
2025 of being "the world reference in "well living" through vegetable products".
This acquisition will strengthen Bonduelle's international footprint and
dramatically change its profile, making the U.S. the largest country of
operations, continuing a longstanding track record of successful acquisitions in
North America, in particular Aliments Carrière, Canada, in 2007 and Allens, USA
in 2012, and making of the fresh category, its first business segment.
This acquisition, which is fully compatible with Bonduelle's strong financial
profile, perfectly fits with its strategic plan and will strengthen its
leadership positions in its core business lines:
- development of Bonduelle's business in the consumer convenience and healthy
food segments,
- increasing presence in the fast growing segment of fresh prepared vegetables,
- reinforcement of footprint in North America, of a size, post transaction,
equivalent to the European Union in Bonduelle's geographical portfolio.
Ready Pac Foods has been erected as a business unit, dedicated to the fresh
business in North America and is called Bonduelle Fresh Americas (BFA),
alongside Bonduelle Long Life Europe (BELL), Bonduelle Fresh Europe (BFE),
Bonduelle Americas Long Life (BALL) and Bonduelle EurAsia Markets (BEAM). The
role of this business unit, like the others, is to pursuit its expansion both in
terms of organic growth and acquisitions for the activity and geographical scope
given.
Ready Pac Foods' management team attracted by the Bonduelle's ambition,
unanimously decided to jump on board.
Refinancing of Ready Pac Foods acquisition
Bonduelle finalized, under particularly attractive conditions, the refinancing
operations associated with the acquisition of Ready Pac Foods.
This operation was financed through a bridge loan of $ 279 million with an
initial term of one year and a $ 130 million amortizing bank loan with a five
years maturity.
This operation was carried out jointly with Crédit Agricole Nord de France and
Crédit Agricole CIB.
The successful syndication process with the pool of existing banks as well as
with 3 new foreign banks, together with the particularly attractive margin
conditions have led Bonduelle to increase the total amount of the bank loan from
$ 130 million to $ 200 million.
At the same time, looking for additional maturity, Bonduelle issued on July the
6(th) 2017, a new Private Placement in the US market (USPP) split into 2
instalments of respectively ? 150 million and $ 50 million. These two
instalments both have a final maturity of 10 years and bring the group's total
debt average maturity to almost 5 years.
Bonduelle, being a repeat issuer on the USPP market since 2000, has been able to
deal this private placement under particularly competitive conditions both in
euros and US dollars, from a pool of historical investors who have renewed its
confidence in the group as well as a new investor.
Through this operation, Bonduelle pursues its policy of partial
disintermediation and diversification of its financing sources (banks, USPP,
EuroPP,...) by further expanding its platform of both banking and non-bank
financial partners, guaranteeing independence and competitiveness of its
indebtedness' cost, and thus reflects its post Ready Pac Foods acquisition
investment grade profile.
Divestiture of the interest in Gelagri
On the 23(rd) of June 2017, the Bonduelle Group divested its minority interests
in the Gelagri companies of France and Spain to Triskalia, its joint shareholder
in these companies. Born from the respective contributions of the shareholders
expertise in frozen for private labels, this joint venture enabled, via
industrial efficiency gains, a sharp turnaround of the activity in terms of
financial performance. Seen as non-strategic, the activity was divested like the
UltraCongelados de la Ribera joint venture during last FY.
The Bonduelle Group received the 1(st) prize for the Corporate Governance of
mid-cap companies
On September 2017 the 19(th), in Paris, Grégory Sanson, the Chief Financial
Officer of the Bonduelle Group, was awarded the 1(st) prize for the category of
"Corporate Governance for Mid-Cap".
The jury honored the family-owned group's willingness to maintain an open and
independent governance made of highly diversified profiles, notably by adopting,
as early as 2008, the Afep/Medef code of corporate governance.
Organized by AGEFI (Economic and Financial Agency), in partnership with BNP
PARIBAS SECURITIES SERVICES, the Grand Prix for Corporate Governance honors the
SBF 120 (French stock market index) stock issuers that best meet investors
demands in terms of transparency and best practices. Launched in 2004, they have
over the years become the absolute reference in identifying the best practices
in terms of corporate governance.
Outlooks
FY 2017-2018 will be characterized by the integration of Ready Pac Foods and its
consolidation over 12 months. The group is expected a revenue growth, at
constant exchange rates, of circa 3% and a current operating profitability
growth of 7 to 8% of its historical business activities. Given revenue and
current operating profitability growth of Ready Pac Foods and its consolidation
over the entire fiscal year, the group is expecting consolidated revenue and
current operating profitability growth of circa 25% at constant exchange rates
for FY 2017-2018, the debt ratio((3)) dropping back to a ratio lower than 3x
excluding new acquisitions.
((1)) At constant scope of consolidation and exchange rates
((2)) Current operating profitability / capital employed
((3)) Net financial liability / recurring EBITDA
((4)) Ready Pac Foods' activity on a twelve-month pro forma basis
((5)) Net financial debt / equity
((6)) Excluding Ready Pac Foods acquisition
Next financial events:
- 2017-2018 1(st) Quarter Turnover: 6(th) of November
2017 (after stock exchange trading session)
- Annual General Meeting: 7(th) of December 2017
- 2017-2018 1(st) Half Year Turnover: 5(th) of
February 2018 (after stock exchange trading session)
- 2017-2018 1(st) Half Year Results: 1(st) of March 2018
(prior to stock exchange trading session)
Find the complete annual results and the financial notices calendar on
www.bonduelle.com
About Bonduelle
Bonduelle, a family business, was established in 1853. Its mission is to be the
world reference in "well-living" through vegetable products. Prioritising
innovation and long-term vision, the group is diversifying its operations and
geographical presence. Its vegetable, grown over more than 130,000 hectares all
over the world, are sold in 100 countries under various brand names and through
various distribution channels and technologies. Expert in agro-industry with 54
industrial sites or own agricultural production, Bonduelle produces quality
products by selecting the best crop areas close to its customers.
Bonduelle is listed on Euronext compartment B
Euronext indices: CAC MID & SMALL - CAC ALL TRADABLE - CAC ALL SHARES
Bonduelle is part of the Gaïa non-financial performance index and employee
shareholder index (I.A.S.)
Code ISIN : FR0000063935 - Code Reuters : BOND.PA - Code Bloomberg : BON FP
2016-2017 Annual Results:
http://hugin.info/143377/R/2137946/818487.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: BONDUELLE via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 02.10.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 561973
Anzahl Zeichen: 23871
contact information:
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Kategorie:
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