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 ZoneThe 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 ZoneThe 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) |
2016-2017Reported figures |
2015-2016Reported 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
USOn 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
acquisitionBonduelle 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 GelagriOn
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 BEuronext indices: CAC MID & SMALL - CAC
ALL TRADABLE - CAC ALL SHARESBonduelle 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
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