BONDUELLE
A French SCA (Partnership Limited by Shares) with
a capital of 57 102 699,50 EurosHead Office: La Woestyne 59173
Renescure, FranceRegistered under number: 447 250 044
(Dunkerque Commercial and Companies Register)
2022-2023 Annual
Results(July 1, 2022 - June 30, 2023)
Growth in the
Bonduelle Group’s business and
profitabilityin
2022-2023
- Significant growth in revenue, declining
volumes
- Current operating profitability up, above the annual
target but insufficient
- Solid financial position despite the impact of
inflation on inventories
- One-third of revenue B Corp™ certified
- Further increase in revenue and profitability expected
in 2023-2024
On September 29, 2023, the Supervisory Board,
under the chairmanship of Martin Ducroquet, reviewed the statutory
and consolidated financial statements for FY 2022 - 2023 as
approved by the General Management and certified by the company's
statutory Auditors.
The Bonduelle Group’s revenue for the fiscal
year 2022-2023 ended June 30, 2023 amounted to € 2,406.2
million, an increase of 9.2% on a reported basis and 5.0% on a like
for like basis(1) compared to the previous fiscal year. Currency
fluctuations had a favorable effect of +4.2% on the group’s growth
this year, with a significant appreciation of the US dollar and
more notably the Russian ruble.
Current operating profitability increased by
+24.8% on a reported basis and +26.9% on a like for like basis(1),
with the current operating margin of 2.7%, higher than the
communicated guidance.
Key figures
Consolidated Accounts(In
€ million) |
2022-2023 |
2021-2022 |
Variations |
Revenue |
2,406.2 |
2,202.6 |
+9.2% |
Current operating
income |
65.9 |
52.8 |
+24.8% |
Net result |
14.5 |
35.4 |
-59.1% |
Message from Xavier
Unkovic - Chief Executive
Officer:
“In an environment of a widespread inflation and
where strong geopolitical tensions remain in certain regions where
the group operates, the diversity of our activities (long-life,
fresh and processed), our production and sales regions,
distribution channels (retail, food service) and our products
either branded or private label enabled the Bonduelle Group to post
a growth in both revenue and current operating income. Financial
year 2023-2024 starts in a climate of significant deconsumption,
fuelled by still important inflation. More than ever, our ability
to innovate and offer product differentiation through strong and
accessible brands will be key elements in the necessary recovery of
the group’s profitability. “
Activity by Geographic
Region
Total consolidated revenue(In €
million) |
2022-2023 |
2021-2022 |
VariationReported
figures |
VariationLike for like
basis(1) |
Europe Zone |
1,508.1 |
1,357.3 |
11.1% |
11.6% |
Non-Europe Zone |
898.1 |
845.3 |
6.3% |
-5.8% |
Total |
2,406.2 |
2,202.6 |
9.2% |
5.0% |
Activity by Operating
Segments
Total consolidated revenue (In €
million) |
2022-2023 |
2021-2022 |
VariationReported
figures |
VariationLike for like
basis(1) |
Canned |
1,126.3 |
958.4 |
17.5% |
13.0% |
Frozen |
278.8 |
238.4 |
17.0% |
165% |
Fresh processed |
1,001.1 |
1,005.9 |
-0.5% |
-5.4% |
Total |
2,406.2 |
2,202.6 |
9.2% |
5.0% |
Europe Zone
The Europe Zone, representing 62.7% of the
business activity in FY 2022-2023, recorded a very strong revenue
growth of +11.1% on reported figures and +11.6% on like for like
basis(1).
All technologies reported growth in value over
the year, despite Quarter 4 marked by a downturn in retail.
For the long life segment, canned-brand
activities posted a drop in volume, but maintained their market
share in declining markets, while the group private labels
activities experienced a more limited decline, enabling them to
meet the expectations of the various market segments. Driven by the
year’s innovations, the frozen activity posted a growth in volume.
Price increases, made necessary by the rise in various cost items,
supported growth in value. The food service activity, mainly
frozen, confirmed its dynamism over the whole year, with a growth
in volume, reinforced in value by price increases.
More sensitive to the consumer environment, the
fresh processed segment in retail also contributed to overall
growth in value, with sales sustained by a good performance in
fresh prepared activity, with growth in volume thanks to the
success of innovations and favorable weather conditions, on the
other hand, the fresh cut salads showed a sharper decline.
Non-Europe Zone
The revenue of the Non-Europe Zone, representing
37.3% of the business activity over FY, recorded a growth of +6.3%
on reported figures and -5.8% on a like for like basis(1).
In North America, the downturn in the fresh
processed segment remained marked in retail, due to an unfavorable
market trend returning to pre-Covid levels, an agronomic crisis
linked to a plant disease that affected the entire sector, and the
residual impact of the previous year's loss of references; the
price rises made necessary by cost increases did not offset the
volume declines recorded. As in the Europe Zone, the dynamic
remains encouraging in the food service activity, with growing
markets and the conquest of new customers. The reorganization of
our sales teams, the overhaul of our commercial policy, the outcome
of recent negotiations, the relaunch of our innovation policy and
the stabilization of markets should enable us to achieve a recovery
in sales volumes in the future.
In the Eurasia zone, the canned activity, which
is predominant in this area and impacted by the geopolitical
context, posted an overall decline in volume, with the Globus brand
preserving the brand’s significant market share in this region. The
frozen activity, which is more marginal, posted for its part a
significant decline. For safety reasons, the Russian frozen plant
in Belgorod has been shut down for the 2023 harvest, with the
processing activity being outsourced during this period.
The export activity of the group also suffered
the consequences of the inflationary and geopolitical environment,
with heightened competition in certain regions with limited
purchasing power and major delivery constraints, while continuing
to expand with the introduction of Bonduelle's range of frozen
products in Israel.
Operating
profitability
(In € million) |
2022-2023 |
2021-2022 |
VariationReported
figures |
VariationLike for like
basis(1) |
Revenue |
2,406.2 |
2,202.6 |
+9.2% |
+5,0% |
Current operating
profitability |
65.9 |
52.8 |
+24.8% |
+26,9% |
Current operating
margin rate |
2.7% |
2.4% |
34 bps |
59 bps |
For fiscal year 2022-2023, the Bonduelle Group’s
current operating profitability stands at € 65.9 million at
constant exchange rates compared to € 52.8 million for the previous
fiscal year, i.e., a current operating margin of 2.7% on reported
figures.
The Europe Zone posted a like for like(1)
current operating margin of 4.7% with price increases making it
possible to absorb the considerable increases in production
costs.
The Non-Europe Zone saw its profitability
recover over the fiscal year. The Eurasia region benefited from
favorable exchange rates for the competitiveness of the products
sold, with the fresh processed segment in North America seeing its
negative profitability narrow under the effect of the
competitiveness initiatives put in place and set to strengthen in
2023-2024.
After taking into account non-recurring items of
€ -11.7 million for the fiscal year, mainly related to the
industrial reorganization costs for the fresh processed segment in
North America, Bonduelle Group’s operating income stood at € 54.1
million as reported compared to a loss of € -65.2 million for the
previous fiscal year, where impairment of property, plant and
equipment and intangible assets was recorded as a non-recurring
item.
Net Result
Financial result amounted to € -31.3 million,
compared to € -14.5 million at the end of the previous fiscal year.
This rise is mainly due to the higher cost of debt as a result of
the increase in interest rates in the currencies in which the
Bonduelle Group finances its activity along with the nature of the
instruments used, with the average financing rate rising from 1.61%
to 4.01% and, lastly, an increase in working capital requirement on
a like for like basis due to the impact of inflation on
inventories.
Foreign exchange hedging transactions generated
a loss of € -4.6 million, mainly due to changes in the Russian
ruble, which is now ineligible for foreign exchange hedges and
which is offset by the competitiveness gains mentioned above. Net
income from associates was € 4.4 million corresponding to the share
of income from Nortera Foods holding, now accounted for under the
equity method, less impairments recorded on non-controlling
interests in start-ups intended to reflect their market value.
The income tax expense amounted to € 18.5
million, compared to € 40.0 million the previous year, the
effective tax rate (80.9%) being distorted by the
non-capitalization of losses on fresh processed activities in North
America.
After taking into account income from
associates, financial result, tax expense and an earn-out of
€ 5.7 million related to the disposal of the long-life
activity in North America the previous fiscal year, Bonduelle
Group’s net income for fiscal year 2022-2023 came to € 14.5
million, compared with € 35.4 million for the previous fiscal year,
or 0.6% of revenue.
Financial situation
|
June 30, 2021Reported
figures |
June 30, 2021Excl. IFRS
16 standards |
June 30, 2022Reported
figures |
June 30, 2022Excl. IFRS
16 standards |
June 30, 2023Reported
figures |
June 30, 2023Excl. IFRS
16 standards |
Net debt (In € million) |
716.0 |
631.0 |
362.9 |
267.9 |
436.1 |
356.7 |
Gearing(2) |
0.97 |
0.85 |
0.43 |
0.31 |
0.56 |
0.45 |
Leverage
ratio(3) |
3.38 |
3.33 |
2.63 |
2.28 |
2.94 |
2.84 |
Net debt (excluding IFRS 16) at June 30, 2023
was € 356.7 million, compared with € 267.9 million at June 30 of
the previous fiscal year. The ratio of debt to the group’s
shareholders’ equity (gearing) remains limited to 0.45. The
leverage ratio (net debt/REBITDA) amounted to 2.84 compared to 2.28
the previous fiscal year.
Other significant information
Adaptation of the American industrial
set up
In February 2023, the Bonduelle Group announced
the adaptation of the industrial structure of its activity on the
East Coast of the United States in order to improve its
competitiveness in the fresh processed market in the United States
and to refocus its activity on its valued segment. Thus, the
manufacturing activities in Florence (New Jersey) are currently
being transferred to the Swedesboro site (New Jersey). This
operation aims at optimizing the production of all products for
customers nationally, while achieving gains in efficiency and
coverage of fixed costs.
At the closing date, the project was underway,
with completion scheduled for the first half of the fiscal year
2023-2024.
The net impact of this reorganization has been
recorded in the fiscal year 2022-2023 under non-recurring items (€
10.1 million).
Amendment of the green syndicated loan
of € 400 million
On February 6, 2023, the Bonduelle Group signed
an amendment to its € 400 million syndicated revolving credit
facility (RCF) with its banking partners, thereby securing an
essential source of financing, which is particularly well suited to
the seasonal nature of the group's financing needs, and on very
competitive terms, despite the current unstable economic
environment. This arrangement provides for a two-year extension,
bringing the maturity from 2026 to 2028, with two one-year
extension options, bringing the final maturity of the loan to
February 2030.
The financial terms of this credit line include
Corporate Social Responsibility (CSR) indicators in line with the
group's mission and purpose, both in terms of B Corp certification
and in terms of reducing its carbon footprint and contributing,
with its agricultural partners, to a regenerative agriculture.
This operation demonstrates once again the
confidence shown by the banking partners in supporting the
Bonduelle Group's development over the long term.
First B
CorpTM
certifications awarded
In 2018, the Bonduelle Group announced its
ambition to become a certified B Corp company by 2025. This
ambition involves each of its entities obtaining their
certification one by one. FY 2022-2023 marks a major milestone with
the certification of Bonduelle in Italy and Bonduelle Fresh
Americas in the United States, together accounting for a third of
group revenue. The two Bonduelle Group entities are the first to
meet B Lab's demanding social and environmental impact standards.
They join the growing community of B Corp-certified companies,
working collectively to make the global economy more respectful of
the planet, inclusive and equitable every day.
These two certifications illustrate the
Bonduelle Group's determination to place a positive impact at the
heart of its business model, formalized from 2020 through a roadmap
called the B!Pact and built around 3 pillars: food, planet and
people. The B Corp certification process accelerates the commitment
and mobilization of all the company's activities around the group's
positive impact programs.
Governance evolution
Following the announcement of Guillaume
Debrosse’ departure in May 2023, the group announced the
appointment of Xavier Unkovic as Chief Executive Officer. The
appointment took effect on June 1, 2023.
Xavier Unkovic held positions in finance, sales,
marketing and executive management in the United-States for 23
years, within the Mars Group and then with Amy’s Kitchen, a B
Corp-certified californian company that markets a range of organic
prepared meals, which he turned around and developed. Since 2021,
Xavier Unkovic has been the CEO of the french company NAOS, a major
player in skin care and health under the brands Bioderma, Institut
Esthederm and Etat Pur.
Outlook
Given a difficult consumer environment, the
Bonduelle Group is targeting revenue growth of around 5% - i.e.
estimated revenue for 2023-2024 of € 2,530 million - and an
operating margin exceeding 3% - i.e. current operating
profitability of around € 75 to 80 million - both at constant
exchange rates, fueled by the confirmed recovery in business in
North America, and strict management of overheads, despite still
significant inflation and a change in currencies adversely
impacting production costs.
(1) at constant currency exchange rate and scope
of consolidation basis. The revenues in foreign currency over the
given period are translated into the rate of exchange for the
comparable period. The impact of business acquisitions (or gain of
control) and divestments is restated as follows
- For businesses acquired (or gain of
control) during the current period, revenue generated since the
acquisition date is excluded from the organic growth
calculation;
- For businesses acquired (or gain of
control) during the prior fiscal year, revenue generated during the
current period up until the first anniversary date of the
acquisition is excluded;
- For businesses divested (or loss of
control) during the prior fiscal year, revenue generated in the
comparative period of the prior fiscal year until the divestment
date is excluded. In the specific case of the loss of control of
the long life activities in North America, the IFRS 5 standard
having been applied to the historical data, the revenue is already
restated in the historical elements;
- For businesses divested (or loss of
control) during the current fiscal year, revenue generated in the
period commencing 12 months before the divestment date up to the
end of the comparative period of the prior fiscal year is
excluded.
(2) net financial debt / equity(3) net financial
debt / recurring EBITDA
Alternative performance indicators: the group
presents in its financial notices performance indicators not
defined by accounting standards. The main performance indicators
are detailed in the financial reports available on
www.bonduelle.com
Next financial
events:
- 2023-2024 1st Quarter Revenue:
November 7, 2023
(after market closing)- Annual Shareholder’s
Meeting: December 7,
2023- 2023-2024 1st Half Year
Revenue: February 1,
2024 (after market closing)- 2023-2024 1st Half Year
Results: February
29, 2024 (after market closing)- Analysts and investors meeting:
March 1, 2024
Find all annual
resultsand the schedule of financial
publications on www.bonduelle.com
About
the Bonduelle Group
We want to inspire the
transition toward a plant-rich diet, to contribute to people’s
well-being and planet health. We are a French family business with
11,038 employees and we have been innovating with our farming
partners since 1853. Our products are cultivated on 68,300 acres
and marketed in 100 countries, with a revenue of € 2,406.2 million
(data as of June 30, 2023)
Our 4 brands are:
BONDUELLE, READY PAC FOODS, CASSEGRAIN and GLOBUS.
Bonduelle is listed on Euronext
compartment BEuronext indices: CAC MID & SMALL – CAC FOOD
PRODUCERS – CAC ALL SHARESBonduelle is part of the Gaïa
non-financial performance index and employees shareholder index
(I.A.S.)Code ISIN: FR0000063935 - Code Reuters: BOND.PA - Code
Bloomberg: BON FP
This document is a free translation into English
and has no other value than an informative one. Should there be any
difference between the French and the English version, only the
French-language version shall be deemed authentic and considered as
expressing the exact information published by Bonduelle.
- Bonduelle - 2022-2023 Annual Results
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