Bel : First quarter 2021 financial information : Sales
Suresnes — May 10, 2021 at 6
p.m.
Bel
First quarter 2021 financial
information
Sales
Organic sales growth up slightly
after adjusting for Covid impact in 2020
- Q1 2021 sales totaled €840.2 million1, down 7.5% on a
published basis.
- Sales declined 3.6%(2)
organically, but grew 0.2% after excluding
the Q1 2020 sales spike tied to the Covid-19
pandemic.
|
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.
Antoine Fievet, Chairman and Chief Executive
Office of the Bel Group, said, "I want to thank all of Bel's
employees, who mobilized once again this quarter to fight the
Covid-19 pandemic and its consequences on our activities and their
personal lives. The unprecedented growth that we reported in Q1
2020, buoyed by increased food purchases and stockpiling by
consumers around the world, automatically led to a sales decline at
the beginning of this year. While our business environment remains
marked by uncertainty and significant disparities, we enter the
second quarter with confidence in the strong economic rebound
expected in key markets, such as North America and China, and the
favorable impact on consumer spending from the Easter and Ramadan
holidays."
In Q1 2021, Bel generated consolidated sales of
€840.2 million, down 7.5% on a published basis versus €908.8
million in the prior-year period. Unfavorable foreign exchange
fluctuations stemming primarily from the euro's rise against the
U.S. dollar, adversely impacted sales by 4.3%, or €39.5 million.
Organically, sales declined 3.6%, after adjusting for negative 0.4%
impact from hyperinflation in Iran. Excluding the positive impact
on Q1 2020 sales related to the Covid-19 pandemic, sales were up
organically a slight 0.2% in Q1 2021.
The performance arose notably from an
unfavorable comparison base with Q1 2020, when sales atypically
spiked due to the global Covid-19 health crisis. At the beginning
of 2020, sales advanced a hefty 11% organically, as lockdown
measures spurred consumer spending on home food consumption around
the world. Accordingly, sales automatically declined 3.6%
organically year-on-year in Q1 2021. That decrease was partially
offset by the excellent performance of the Boursin brand, which
reported a 12.9% sales increase overall, buoyed by higher sales in
France, Belgium and the United States.
The sales breakdown by market segment is as
follows:
|
|
First quarter |
|
|
millions of euros |
2021 |
2020 |
% change |
% organic growth** |
|
| Global Markets |
690 |
747 |
-7.6% |
-3.8% |
|
|
New Territories* |
150 |
162 |
-7.5% |
-3.0% |
|
|
Total |
840 |
909 |
-7.5% |
-3.6% |
|
* New Territories encompass the business
activities of MOM (Mont-Blanc, Materne), as well as markets in
Sub-Saharan Africa and China.** Including adjustments for
hyperinflation in Iran and excluding AIF (All in Foods).
Global Markets
The performance of global (mature) markets was
marked by a slowdown in the global economy. Curfew and lockdown
measures, once again mandated in many European countries, such as
the U.K., Germany, Portugal, and France, negatively impacted
consumer spending. In some markets like Germany, a strong
competitive environment put downward pressure on prices. The sales
volumes of snack products in North America and Japan similarly
declined from recommended lockdown measures in those markets.
Nevertheless, the underlying trend in consumer spending for all
brands in the United States remains favorable. Lastly, the
geopolitical and economic situation in Near and Middle East
countries remains particularly volatile.
New Territories
The slight decline in sales from new territories
stems from the unfavorable comparison base with an exceptionally
strong Q1 2020.
|
|
3 months |
|
|
millions of euros |
2021 |
2020 |
% change |
% organic growth** |
|
| Europe |
461 |
473 |
-2.6% |
-2.1% |
|
| Middle East, Greater
Africa |
163 |
198 |
-17.8% |
-9.5% |
|
|
Americas, Asia-Pacific |
216 |
237 |
-9.0% |
-1.8% |
|
|
Total |
840 |
909 |
-7.5% |
-3.6% |
|
** Including adjustments for hyperinflation in
Iran and excluding AIF (All in Foods).
Outlook for 2021
Currency volatility and unfavorable raw material
price trends were confirmed in Q1 2021, calling for renewed caution
going forward. While the Covid-19 pandemic and the geopolitical and
economic situation in the Near and Middle East still make for a lot
of uncertainty, accelerated vaccination campaigns around the world
and the progressive stabilization of the situation in certain
Levant countries are positive signs. Lastly, Bel expects its Q2
2020 growth to be buoyed by a more favorable comparison base,
accelerated promotional campaigns with several product innovation
launches in the offing, the Easter and Ramadan holidays, and the
particularly strong economic recoveries expected in key markets,
such as the United States and China.
Against this backdrop, Bel reiterates its trust
in the company's ability to strengthen its presence in the healthy
snack market, while continuing to innovate and increase the appeal
of its product offering in the three complementary markets of
dairy, fruit and plant-based foods. In line with its model for
engaged and responsible growth, Bel plans to continue lessening its
environmental footprint and to contribute to promoting a new
positive business model for the food industry, in sync with its
company mission to champion healthier and responsible food for
all.
In Q1 2021, Bel beefed up its policy for
procuring renewable electricity at its plants to meet the company's
Scope 1 and 23 carbon reduction goals by end 2021. At this writing,
the supply of electricity to all dairy North American sites comes
from renewable sources. Bel also launched a partnership between Bel
Brands USA and Land O'Lakes to jointly lead a regenerative
agriculture program key to contributing to the development of
sustainable dairy industry. In addition, Bel successfully deployed
a campaign to raise awareness about food waste alongside Too Good
To Go in the U.K. and Spain, after rolling out similar campaigns in
France in March 2020 and Portugal in December 2020. Bel intends to
pursue these significant actions in the coming quarter, as part of
its ambitious Corporate Social Responsibility (CSR) policy.
On March 18, 2021, Bel Group and Lactalis Group
entered into a Unilateral Promise to Purchase a business, including
Royal Bel Leerdammer NL, Bel Italia, Bel Deutschland, the
Leerdammer brand and all related rights plus Bel Shostka Ukraine,
in exchange for 1,591,472 Bel shares held by Lactalis (23.16%
equity stake). This transaction is in line with Bel’s strategy to
expand its activities beyond cheese products to strengthen its
position as a major player in the healthy snack market.
The final agreements relating to the exchange
transaction may be concluded after consultation with the employee
representative bodies of some of the entities concerned. Completion
of the transaction will be conditional on obtaining the required
merger control approvals and is expected to take place before the
end of summer 2021, in accordance with the indicative timetable
announced.
Following said transaction completion, Bel plans
to file a public share buyback tender offer (“OPRA”)4 at €440 per
share5 (cum dividend).
Furthermore, Bel has been notified of Unibel’s
intention to file a planned public share squeeze-out offer
(“OPR-RO”) with the AMF on any remaining Bel shares as soon as
possible following the OPRA settlement-delivery date and at the
same price per share as for the OPRA, that is to say €440 per
share5 (cum dividend). Completion of the OPR-RO is expected to take
place before the end of 2021.
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®, Nurishh®, 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 relations
Havas Paris - Sarah
Duparcsarah.duparc@havas.com - +33 (0)1.58.47.82.06 / +33
(0)6.46.72.39.99
Havas Paris – Michaël
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(0)6.82.34.76.26
1 This amount includes the business comprising Royal Bel
Leerdammer NL, Bel Italia, Bel Deutschland, the Leerdammer brand
and all related rights, and Bel Shostka Ukraine.
2 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.
3 Scope 1 covers direct factors of greenhouse gas emissions
generated by an organization or a territory. Scope 2 covers
indirect factors of greenhouse gas emissions associated with
electricity and heat usage.
4 See Bel press release dated March 19, 2021. This proposed
public offering will be subject to a compliance decision by the AMF
(“Autorité des Marchés Financier”).
5 The fairness of the price of the public offer is subject to
the assessment of the appointed independent expert.
- Bel_2021_Sales_First Quarter_US