July 29, 2010 01:18 ET
BONDUELLE: Annual Turnover
VILLENEUVE-D'ASCQ, FRANCE--(Marketwire - July 29, 2010) - 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: B 447 250 044 (Dunkerque Registrar of
Businesses)
FY 2009-2010 annual turnover
Turnover up by 2.3%
- Sales sustained despite an uncertain consumer climate
- Market-share gains for branded products
- France Champignon successfully integrated as planned
- Start-up of operations in Brazil in August 2010
- Expected increase in operational profitability confirmed
As of June 30th, 2010, consolidated turnover stood at 1,559.6 million
Euros, compared to 1,523.9 million Euros in the previous financial year.
At constant foreign exchange rates and on a like-for-like basis, the
turnover was down 2.2 %.
Once again the Bonduelle Group demonstrated its capability for resistance
in the face of:
- low consumption volumes and significant efforts on consumer retail prices
in Western Europe;
- the non-materialisation of an economic upturn in Central and Eastern
Europe;
- an unfavourable USD-to-CAD parity in North America.
With the France Champignon acquisition, and the start-up of operations in
Brazil, the Group underscores its intention to pursue investments in
growing areas.
Breakdown of turnover by geographical zone
+------------------------+-----------+---------------+--------------------+
| Consolidated turnover | 2009-2010| | |
+------------------------+-----------+---------------+--------------------+
| (in millions of Euros)| | Current|Like for like basis |
| | | |(1) |
+------------------------+-----------+---------------+--------------------+
| | | exchange rates| |
+------------------------+-----------+---------------+--------------------+
| Europe Zone | 1174.6| +1.5 %| - 0.8 %|
+------------------------+-----------+---------------+--------------------+
| Non-Europe Zone | 385.0| + 5.0 %| - 6.1 %|
+------------------------+-----------+---------------+--------------------+
| Total | 1559.6| + 2.3 %| - 2.2 %|
+------------------------+-----------+---------------+--------------------+
+----------------------+--------------+--------------+--------------------+
|Consolidated turnover | Q4 2009-2010| | |
+----------------------+--------------+--------------+--------------------+
|(in millions of Euros)| | Current|Like for like basis |
| | | |(1) |
+----------------------+--------------+--------------+--------------------+
| | |exchange rates| |
+----------------------+--------------+--------------+--------------------+
|Europe Zone | 342.7| + 10.1%| - 1.7 %|
+----------------------+--------------+--------------+--------------------+
|Non-Europe Zone | 89.1| + 6.8 % | - 14.9 %|
+----------------------+--------------+--------------+--------------------+
Total | 431.8| + 9.4 %| - 4.8 %|
+----------------------+--------------+--------------+--------------------+
Breakdown of turnover by processing technology
+------------------------+----------+----------------+--------------------+
| | | |Like for like basis |
| | | |(1) |
+------------------------+----------+----------------+--------------------+
| Consolidated turnover | 2009-2010| Current| |
| | | | |
+------------------------+----------+----------------+--------------------+
| (in millions of Euros)| | exchange rates| |
+------------------------+----------+----------------+--------------------+
| Canned | 793.7| + 2.9 %| - 2.7 %|
+------------------------+----------+----------------+--------------------+
| Frozen | 420.9| + 1.2 %| - 3.9 %|
+------------------------+----------+----------------+--------------------+
| Chilled | 345.0| + 2.4 %| 1.1 %|
+------------------------+----------+----------------+--------------------+
| Total | 1559.6| + 2.3 %| - 2.2 %|
+------------------------+----------+----------------+--------------------+
+----------------------+--------------+--------------+--------------------+
| | | | |
| | | | |
+----------------------+--------------+--------------+--------------------+
|Consolidated turnover | Q4 2009-2010| Current|Like for like basis |
| | | |(1) |
+----------------------+--------------+--------------+--------------------+
|(in millions of Euros)| |exchange rates| |
+----------------------+--------------+--------------+--------------------+
|Canned | 224.9| + 9.7 %| - 7.2 %|
+----------------------+--------------+--------------+--------------------+
|Frozen | 106.2| + 9.5 %| - 8.1 %|
+----------------------+--------------+--------------+--------------------+
|Chilled | 100.7| + 8.8 %| + 4.2 %|
+----------------------+--------------+--------------+--------------------+
|Total | 431.8| + 9.4 %| - 4.8 %|
+------------------------+------------+--------------+--------------------+
(1) Constant exchange rates and scope of consolidation
Canned-vegetable sales
Canned-vegetable sales closed up 2.9 %. When restated to account for
consolidation-scope effects (integration of France Champignon sales at
April 1, 2010; full-year impact of the November-2008 acquisition of La
Corbeille; transfer of apple- and pickle-transformation operations in
January 2010) and exchange rate variations, sales had receded by 2.7 %.
In a western-European market in which retail volumes were generally in
negatively oriented, the Bonduelle Group saw increases in branded-product
sales in its 3 main markets (France, Germany, and Italy)—thanks
notably to significant investments in advertising, major promotional
operations, the successful market performance of its innovations (steamed
products in France, and the Cassegrain sweet-and-savoury line in
particular)—as well as market-share gains in practically all of its
territories.
Globally, canned-vegetable sales were penalised by the non-materialisation
of an upturn in consumption in Central and Eastern Europe, and by voluntary
restrictions on customer credit in this region.
Frozen-vegetable sales
Frozen-vegetable sales rose by 1.2 %. When restated to account for
consolidation-scope effects (incorporation of France Champignon; full-year
impact of the Family Tradition and Omstead Food acquisitions in April and
June 2009 respectively; April-2009 deconsolidation of Gelagri's European
distributor-brand frozen-vegetables operations) and exchange-rate
variations, sales were down by 3.9 %.
Despite growth in Food Service sales in Western Europe, and market-share
gains by Bonduelle-brand products in the French mass retail sector, global
frozen-vegetable sales were negatively affected by the impact of a strong
Canadian dollar on US sales.
Chilled-vegetable sales
Chilled-vegetable sales were up 2.4 %—and 1.1 % when restated to
account for the incorporation of France Champignon in the scope of
consolidation—marking a revival in growth in this technology sector,
particularly in terms of volume, in markets which had regained their
dynamism.
The increase in sales was accompanied by market-share gains by Bonduelle-
brand products in both the packaged- and prepared-salads sectors in France.
Highlights of the quarter
Integration of France Champignon
The incorporation of France Champignon's operations is proceeding as
planned, i.e.:
- Continued rationalisation of production facilities;
- Ongoing efforts to achieve administrative synergies and economies of
scale (purchasing).
The Group confirms the prospects of a significant improvement in the
profitability of this business, and its contribution to an improvement,
within 3 years, in the Group's Return on Capital Employed (ROCE).
Transfer of the production facility in Stabroek
At the end of June, the Group completed the transfer of the production
facility in Stabroek (Belgium), acquired on the occasion of the take-over
of La Corbeille, and whose operations were discontinued in FY 2009/2010.
Start-up of the Cristalina site in Brazil confirmed for August 2010
With the completion of the first phase of the Cristalina industrial
facility—designed for a total production capacity of 50,000
tons—, production (canned peas then corn) is scheduled to begin in
August 2010, with the first products appearing on the market in November
2010.
Prospects
Despite a more-difficult-than-anticipated 4th quarter, the Bonduelle Group
expects, this year again, to show an increase in operating profitability in
FY 2009-2010.
Through asset transfers (Stabroek; apple processing operations) and careful
management of working capital requirements, the Group expects to improve
its debt ratio (135 % at June 30, 2009), despite the end-of-year
acquisition of France Champignon.
With poor production campaigns in certain regions (high temperatures), the
non-materialisation of an upturn in consumption in Western, Central and
Eastern Europe, and the absorption of an overall excess inventory both in
Europe and North American markets, the Group is intent on redoubling
efforts to adapt its cost structure, while pursuing a selective innovation
and investment policy in growth zones.
The acquisition of France Champignon opens new and significant prospects
for
growth in profitability, and with its healthy financial situation, the
Bonduelle Group's remains ever attentive to further acquisition
opportunities.
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