Bel: Bel Fourth quarter 2020 financial information Sales
Suresnes — February 26, 2021 at 6
p.m.
Bel
Fourth quarter 2020 financial
information
Sales
Full-year organic growth makes further
headway
- Consolidated sales increase 1.5% to €3,455.8 million in
2020
- Organic sales growth accelerates to 2.8%1
for the full year
- Strong momentum reported in new territories, with sales
up 11.8% organically
- Global (mature) markets prove resilient, with sales up
1.1% organically
- Fourth quarter sales total €862.2 million, up 1.6%
organically
|
Amounts are expressed in millions of euros and
rounded off to the nearest million. Ratios and variances are
calculated based on underlying amounts, not rounded off
amounts.
In a year marked by an unprecedented health and
economic crisis, Bel in 2020 generated consolidated sales of
€3,455.8 million, up 1.5% on a published basis versus 2019. Organic
sales growth advanced 2.8% for the year. Excluding Iran
hyperinflation retreatment, organic sales growth totaled 3.2%.
Foreign exchange rate fluctuations had a negative impact of -1.7%
(€58.7 million).
The 2020 increase in organic sales growth was
fueled by the positive momentum of Bel's core brands, in particular
Boursin®, Kiri®, Leerdammer®, and GoGo squeeZ® in all company
markets. The year was also marked by resumed growth at Bel France,
Bel US, and The Laughing Cow® brand, and MOM's continued positive
trajectory. Lastly, sales of industrial and unbranded products
declined 5%, compared to the prior year, as a result of lower
prices for cream.
In Q4, consolidated sales totaled €862.2
million, down 1.9% versus the prior-year period. The decline
stemmed from a negative -4.5% forex impact triggered primarily by
the appreciation of the euro against the U.S. dollar and organic
sales growth of 1.6%. Bel demonstrated strong resilience in a
complicated environment during the year and reported continued
organic growth in both its operating segments. Market contraction
in North Africa and the Middle East was offset by strong growth in
North American and European markets, which were buoyed by
successful sales and marketing strategies deployed locally and
MOM's performance. In particular, Mini Babybel® resumed growth on
the success of a new promotional campaign conducted in July and
August 2020.
|
Q4 |
|
12 months |
millions of euros |
2020 |
2019 |
% change |
% organic growth** |
|
2020 |
2019 |
% change |
% organic growth** |
Global Markets |
727 |
749 |
-2.8% |
+0.8% |
|
2,865 |
2,871 |
-0.2% |
+1.1% |
New Territories* |
135 |
130 |
+3.7% |
+6.2% |
|
591 |
532 |
+11.2% |
+11.8% |
TOTAL |
862 |
879 |
-1.9% |
+1.6% |
|
3,456 |
3,403 |
+1.5% |
+2.8% |
* New Territories encompass the business
activities of MOM (Mont-Blanc, Materne), as well as markets in
Sub-Saharan Africa and China.** Including impact from the
hyperinflationary environment in Iran and excluding AIF (All In
Foods).
Agile and fast adaptation to mitigate
Covid impact
Throughout 2020, Bel made ensuring the health
and safety of its employee an absolute priority by implementing
very strict preventive measures at all its sites worldwide.
As a result of its agile operations management
and tight financial control, the company was able to adapt rapidly
to confront the Covid 19 pandemic and mitigate its impacts. In
particular, Bel took action to actively manage its inventories and
raw materials in view of fluctuating consumer demand and to limit
extraordinary operating costs tied to managing the crisis.
For the full year, Bel estimates that the Covid
19-related impact on sales was non-material overall, albeit with
some major disparities by geographic region. In France, the Benelux
countries, the UK, and the Gulf countries, local consumer spending
was particularly buoyant, especially for products that can be used
for home cooking. Conversely, Morocco and to a lesser degree
Southern Europe were unfavorably affected, while the impact in
North America remained neutral.
Resilient sales in global
markets
Bel's global (mature) markets showed resilience,
posting a relatively flat (negative 0.2%) performance in 2020.
Excluding foreign currency fluctuations, organic sales growth came
to 1.1%, with a solid Q4 increase of 0.8% over Q4 2019.
In Europe, sales advanced 1.9% organically in
2020, with the strong momentum reported in France, the UK and the
Benelux countries, offsetting a tough trade and competitive
environment in Germany.
Against a particularly volatile geopolitical and
economic environment notably in the markets of the Levant region,
Bel reported a -3.1% decline in organic sales growth in the Middle
East and Greater Africa region at December 31, 2020.
In North America, strong sales growth was
bolstered by increased sales of The Laughing Cow®, notably by the
reintroduction of the brand's products in the single-serving
portions format at the beginning of the year. Bel Canada also
reported favorable momentum spurred by Boursin® brand product
innovations and stronger sales of the company's core brands. In
this territory, the second half of 2020 was marked by the startup
of the new plant in Sorel.
Growth accelerates in new
territories
In 2020, Bel again strengthened its performance
in new territories, where sales were up 11.2% versus 2019. The
performance was buoyed by MOM's solid growth trajectory,
particularly in North America, where the company reported
double-digit sales growth.
In Asia, momentum in China continued to develop
in the last quarters, with double-digit organic growth reported by
the Foodservice activity in that market.
Sales by geographic region
|
|
12 months |
millions of euros |
|
2020 |
2019 |
% change |
% organic growth |
Europe |
|
1,858 |
1,823 |
+1.9% |
+1.9% |
Middle East, Greater
Africa |
|
678 |
724 |
-6.3 |
-3.1% |
Americas, Asia-Pacific |
|
920 |
856 |
+7.5% |
+9.5% |
TOTAL |
|
3,456 |
3,403 |
+1.5% |
+2.8% |
2020 earnings outlook
reiterated
The transformation plan initiated in 2018
continued to unfold in 2020. The associated cost-cutting plan aimed
at supporting growth was successfully completed at the end of the
year, in line with the earlier announced targets and schedule. As a
result of the cost cutting measures, efforts to renew industrial
operations productivity and Bel's quick response to adapt to
health, operational and financial challenges posed by the Covid 19
pandemic, the company expects to further improve its operating
margin2 and to generate strong cash flow3 at end 2020.
With a long-term commitment to champion
healthier food embodied by its new "For All. For Good" signature,
Bel is fully in sync with a sustainable and profitable growth
model.
Bel expects to report its financial results on
March 18, 2020.
About Bel
The Bel Group is a world leader in branded
cheese and a major player in the healthy snack market. Its
portfolio of differentiated and internationally recognized brands
include such products as The Laughing Cow®, Kiri®, Mini Babybel®,
Leerdammer®, Boursin®, Pom’Potes®, and GoGo squeeZ®, as well as
some 20 local brands. Together, these brands helped the Group
generate sales of €3.46 billion in 2020. Some 12,510 employees in
some 40 subsidiaries around the world contribute to the deployment
of the Group's mission to champion healthier and responsible food
all. Bel products are prepared at 33 production sites and
distributed in nearly 120 countries.
www.groupe-bel.com
------------------ Public relationsHavas
Paris - Sarah Duparcsarah.duparc@havas.com - +33
(0)1.58.47.82.06 / +33 (0)6.46.72.39.99
1 Organic growth corresponds to reported sales
growth, excluding impacts from foreign exchange fluctuations and
changes in the scope of consolidation, i.e. on a constant structure
and exchange rate basis, and excluding inflation in Iran. Since
2020, Iran's economy is deemed to be a hyperinflation economy.
Accordingly, inflation impacts, based on the Consumer Price Index
(CPI), were excluded when determining organic growth.
2 Operating margin corresponds to operating income.
3 Operating cash flow corresponds to net cash flow generated by
operating activities.
- Bel_2020_Sales_4th quarter_US