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
(in € millions) |
2016-2017 |
2015-2016 |
Variations |
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 turnover
(in € million) |
2016-2017 |
2015-2016 |
Variation
Reported figures |
Variation
Like for like 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 turnover
(in € million) |
2016-2017 |
2015-2016 |
Variation
Reported figures |
Variation
Like for like 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 (1st of July 2016
- 30th 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 21st 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
Reported figures |
2015-2016
Reported figures |
Variation
Reported figures |
Variation
Like for like basis(1) |
Turnover |
2,288.1 |
1,967.7 |
+ 16.3% |
+ 2.7% |
Current Operating Profitability |
108.3 |
103.5 |
+ 4.6% |
+ 1.2% |
Current Operating Margin |
4.7% |
5.3% |
- 60 bp |
- 10 bp |
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 30th 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.
|
30th of June
2013 |
30th of June
2014 |
30th of June
2015 |
30th of June
2016 |
30th of June
2017 |
Net debt (in millions of Euro) |
591.9 |
524.6 |
512.4 |
440.6 |
661.6 |
Gearing(5) |
1.15 |
1.04 |
0.98 |
0.78 |
1.09 |
Leverage ratio(3) |
3.27x |
2.95x |
2.73x |
2.47x |
3.1x(4) |
Net debt (in millions of Euro) acquisition
excluded(6) |
591.9 |
524.6 |
512.4 |
440.6 |
301.3 |
Gearing(5) acquisition
excluded(6) |
1.15 |
1.04 |
0.98 |
0.78 |
0.49 |
Leverage ratio(3) )
acquisition excluded(6) |
3.27x |
2.95x |
2.73x |
2.47x |
1.67x |
Considering the group's
operational profitability evolution and 2017-2018 outlooks, the
General Management will request at the Shareholders' Meeting on the
7th 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 21st 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 6th 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 23rd 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 1st prize for
the Corporate Governance of mid-cap companies
On September 2017 the 19th, in Paris,
Grégory Sanson, the Chief Financial Officer of the Bonduelle Group,
was awarded the 1st 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 1st
Quarter Turnover:
6th of November
2017 (after stock exchange trading session)
- Annual General
Meeting:
7th of December
2017
- 2017-2018 1st Half Year
Turnover:
5th of February
2018 (after stock exchange trading session)
- 2017-2018 1st Half Year
Results:
1st 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
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
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