BONDUELLEA French SCA
(Partnership Limited by Shares) with a capital of 56 942 095
EurosHead Office: La Woestyne 59173 Renescure, FranceRegistered
under number: 447 250 044 (Dunkerque Commercial and
Companies Register)
First Half Year 2018-2019 Financial
Results(July 1 - December 31, 2018)
Resilience of business activity and
profitabilityin a difficult environment
- Business activity remains satisfactory in Europe
- Business activity outside Europe impacted mainly by the
downsizing of the fresh activities in North America
- 2018 difficult harvests impacting profitability over the
first half year
- Acquisition of the Lebanon frozen plant (USA)
- Annual profitability objectives confirmed at the low end of
the initial target range
The 2018-2019 half-year financial statements
were reviewed by the General Partner, then by the Supervisory Board
of February 28, 2019 and audited by the Statutory Auditors.
Significant Results
(in € millions) |
1st HY 2018-2019 |
1st HY 2017-2018 |
Variation |
Revenue |
1,406.6 |
1,420.3 |
-1.-% |
Current Operating Result |
60.9 |
66.- |
-7.7% |
Current Operating Margin |
4.3% |
4.6% |
- 30 bp |
Consolidated Net Profit |
34.8 |
37.7 |
-7.6% |
Gearing(1) |
1.32 |
1.32 |
- |
Revenue
The Bonduelle Group's revenue stands for the
first half of financial year 2018-2019 at 1,406.6 million of euros,
a decrease of -1.-% both on reported figures and a like-for-like
basis(2). The changes in the scope of consolidation resulting from
the acquisition, early July 2018, of the Del Monte business
activities, made a positive contribution of +1.2% to the variation
of the revenue over the period and the negative impact of the
exchange rates fluctuations, mainly the weakening of the Russian
ruble and Canadian dollar, -1.1%.
Activity by Geographic Region
Total Consolidated Revenue(in € millions) |
1st HY 2018-2019 |
1st HY2017-2018 |
Variation Reported figures |
Variation Like-for-like basis(2) |
Europe Zone |
642.3 |
633.3 |
+1.4% |
+1.6% |
Non-Europe Zone |
764.4 |
787.- |
-2.9% |
-3.1% |
Total |
1,406.6 |
1,420.3 |
-1.-% |
-1.-% |
Activity by Operating Segments
Total Consolidated Revenue(in € millions) |
1st HY 2018-2019 |
1st HY2017-2018 |
Variation Reported figures |
Variation Like-for-like basis(2) |
Canned |
533.3 |
522.4 |
+2.1% |
+1.5% |
Frozen |
322.5 |
316.4 |
+1.9% |
+3.6% |
Fresh processed |
550.8 |
581.5 |
-5.3% |
-5.7% |
Total |
1,406.6 |
1,420.3 |
-1.-% |
-1.-% |
Europe ZoneThe revenue growth for the
Europe Zone, representing 45.7% of the business activity over the
period, posted a global increase of +1.4% on reported figures and
+1.6% on a like-for-like basis(2) for the first half of the fiscal
year, the three operating segments of the group having positively
contributed to the evolution of this zone.The second quarter
demonstrated faster growth with a +2.2% percent improvement on
reported figures and +2.4% on a like-for-like basis(2).Following a
difficult start for this fiscal year, the canned and frozen
operating segments recorded a solid growth over Q2. By contrast,
following a first quarter boosted by favourable weather conditions,
the fresh processed and fresh ready-to-eat operating segment
recorded, over Q2, limited growth, that was partially impacted by
the demonstrations that took place in France.
Non-Europe ZoneThe revenue of the
Non-Europe Zone, representing 54.3% of the revenue of the group,
was down -2.9% on reported figures and -3.1% on a like-for-like
basis(2).In North America, the temporary time lags in the
completion of some sales contracts with canned and frozen food
manufacturers observed in Q1, have, as expected, been postponed to
Q2.The discontinuation of non-profitable product ranges within
Bonduelle Fresh Americas (fresh-cut fruit,...); a health warning
regarding the consumption of salads in the US and Canada, without
Bonduelle or its suppliers involvement but affecting the entire
industry; and a sourcing diversification strategy of one of our
customers in the US have all hindered the fresh activities in the
zone. This is despite adding new customers and the launch of a
Bonduelle-branded range of salad bowls in Canada at the end of the
half-year.During Q2, Russia confirmed strong sales momentum in
canned and frozen for the Bonduelle brand observed during the first
half of the year, buoyed notably by some innovations in corn,
olives and mixed vegetables in jars, now produced in Russia.
Operating profitability
The current operating profitability of the
Bonduelle Group for the first half year of FY 2018-2019 stands at
60.9 million of euros, a 7.7% decline in reported figures and 7.8%
on a like-for-like basis(2). Consequently, the current operating
margin of 4.3% was down 30 bp when compared with the first half of
last fiscal year, mainly reflecting the effects of the 2018 poor
harvests, as announced last October.The Europe zone, primarily
affected by those poor harvests, posted a profitability of 22.9
million of euros on reported figures and recorded a current
operating margin of 3.6% both in reported figures and constant
exchange rates, a decline of 50 bp.In the non-Europe zone, the
current operating profitability stands at 38.- million of euros,
with a current operating margin of 5.-% on reported figures, a
decline of 10 bp when compared with the first half of last fiscal
year but unchanged at 5.1% at constant exchange rates.This
resilience in the operating margin amid similar harvest effects has
been driven by the accretive integration of the Del Monte
activities coupled with the strong performance recorded in
Russia.After non recurrent items, the operating profitability
stands at 58.1 million of euros against 64.9 over the same period
last fiscal year.
Net result
The net financial result remains substantially
unchanged at -13.4 million of euros despite the volatility of the
ruble. Corporate income tax expense amounts to -9.8 million of
euros, for an effective tax rate of 22%. The net result stands at
34.8 million of euros, representing 2.5% of revenue, down 7.6%
compared to the same period last fiscal year.
Financial situation
The group's net financial debt stands on
December 31, 2018 at 879.9 million of euros against 826.5 million
of euros last fiscal year. The gearing ratio(1) is at 1.32, stable
from one period to another and consistent with the seasonal nature
of the group's activity. The evolution of the debt is linked to the
acquisition of the Del Monte business activities that took place on
July 1, 2018 and to the inventory procurement cost. Meanwhile the
average cost of debt is down to 2.69% against 2.76% last fiscal
year.
Highlights
Bonduelle continues its development in frozen
food in the United States with the acquisition of the Lebanon
plantOn February 12, 2019, the Bonduelle Group announced that
it had reached a definitive agreement with the American company
Seneca (NASDAQ: SENEA, SENEB) to acquire its plant in Lebanon
(Pennsylvania, USA).This plant, which is used for the packaging of
frozen products, was built in 2008 and acquired by Seneca in 2010,
has a capacity of 45,000 tons on seven packaging lines in perfect
working order, with a large storage capacity, and has 140 permanent
employees.The Bonduelle Americas Long Life business unit (BALL),
which until recently was limited in its development capacity, is
thus completing its frozen industrial facility in North America,
with 4 industrial facilities in the Eastern United States and 6 in
Canada. In addition to the additional packaging capacity generating
revenue, this acquisition will allow both industrial and logistical
synergies with existing facilities and will offer enhanced quality
of service for the benefit of BALL business unit customers.This
acquisition, including industrial assets, stocks of frozen products
and the personnel of the Lebanon industrial site, effective
February 11, 2019, will, given the seasonality of the activity, be
accretive from the 2019-2020 financial year.
Co-optation of a member of the Supervisory
BoardAt the Supervisory Board meeting of February 28, 2019,
Marie-France TISSEAU decided, for personal reasons, to resign as a
member of the Board. During the same meeting, the Board appointed
Jean-Michel THIERRY, Chartered Accountant and Statutory Auditor, as
member of the Board and member of the Accounts and Audit
Committee.Approval of this co-optation will be submitted for
ratification to the Annual General Meeting on December 5, 2019 at
the latest.
Outlooks
Given the activity change recorded in the first
half of the year, the Bonduelle Group is anticipating limited
growth in revenue at constant exchange rates for the full fiscal
year 2018-2019, largely driven, in the absence of any expected
internal growth, by the acquisitions of the Del Monte activities
and to a lesser extent, of the frozen plant in Lebanon.The harvest
impact and the difficulties in negotiating with distributors in a
context of inflation of the various cost components will limit the
group's profitability objective at constant exchange rates at the
announced lower range of the initial target of 128 to 133 million
of euros.
(1) net financial debt / equity(2) 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;
- 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.
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:
- 2018-2019 3rd Quarter FY
Revenue:
May 2, 2019 (after stock exchange trading session)- 2018-2019
Financial Year Revenue:
August 5, 2019 (after stock exchange trading session)- 2018-2019
Annual Results:
September 30, 2019 (prior to stock exchange trading session)
Find the complete Half Year results 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 plant-based food. Prioritizing innovation and long-term
vision, the group is diversifying its operations and geographical
presence. Its vegetables, 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. An
expert in agro-industry with 55 industrial sites or owned
agricultural production sites, Bonduelle produces quality products
by selecting the best crop areas close to its customers.Bonduelle
is listed on Euronext compartment AEuronext indices: CAC MID &
SMALL - CAC FOOD PRODUCERS - 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
Find out about the group's current events and
news on Twitter @Bonduelle_Group, and its financial news on
@BonduelleCFO
- Bonduelle - Half Year 18-19 Financial results.pdf
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