Bel: Third quarter 2020 financial information - Sales
Suresnes — Nov. 5, 2020 at 6:00
pm
Bel
Third quarter 2020 financial
information
Sales
- Sales advance a robust 3.5% organically in the first
nine months of 2020
- Consolidated sales total €2,594 million
- Sales increase 2.7% on a published basis
- In Q3, strong organic sales growth achieved in an
environment still marked by the global health crisis
- Organically, sales grew 2.0% overall and 3.0% excluding
the Levant region
-
- Sales of Bel's core brands were up 2.3%
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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.
At September 30, 2020, in a global environment
hard hit by the Covid-19 pandemic, Bel reported consolidated sales
of €2,594 million, up 2.7% on a published basis over the first nine
months of last year, after taking into account a negative 0.8%, or
negative €19-million, impact from foreign exchange rate
fluctuations. Organic sales growth for the nine-month period
came to 3.5%.
In Q3 2020, organic sales growth remained
strong, advancing 2.0% overall and increasing 3.0% excluding the
Levant region, against an already high comparison base in Q3 2019.
Consolidated sales totaled €857 million, down 1.1% versus Q3 2019,
after factoring in a markedly negative foreign-exchange impact of
3.1%, or €27 million.
Organic sales growth for the period was notably
fuelled by strong performances achieved in France and the United
States, where the company's core brands continued to make headway.
Sales of The Laughing Cow continued to grow thanks to an effective
promotional campaign at the beginning of the year, while Kiri and
Boursin also reported strong gains in their markets.
These good performances offset the consequences
of pandemic-related measures, particularly in Southern Europe,
where consumer spending declined for lunch box single-serving
portions following the closure of schools, and in-store promotional
campaigns were curtailed owing to the pandemic. Markets in the
Levant region remained in decline.
Sales by market
segment
|
Third quarter |
|
|
9 months |
millions of euros |
2020 |
2019 |
% change |
% organic growth |
|
2020 |
2019 |
% change |
% organic growth |
Global Markets |
703 |
720 |
-2.3% |
+0.9% |
|
2,137 |
2,123 |
+0.7% |
+1.6% |
New Territories |
154 |
147 |
+4.6% |
+7.4% |
|
457 |
402 |
+13.6% |
+13.7% |
TOTAL |
857 |
867 |
-1.1% |
+2.0% |
|
2,594 |
2,525 |
+2.7% |
+3.5% |
Global Markets
In Europe, excluding food services, sales
continued to grow strongly in France in Q3, confirming the robust
trend observed since the beginning of the year. Bel brands remained
popular among consumers, in particular Boursin and The Laughing
Cow.
The contraction observed in the Levant markets
since the second half of 2019 continued apace and accounted for the
1.5% decline in Q3 sales in the Middle East, Greater Africa
region.
In North America, the strong sales growth
reported in the first half of 2020 for The Laughing Cow portions
was confirmed in Q3.
The plant in Sorel, Canada, began operations in
September, producing its first Mini Babybel branded products.
New Territories
In Asia, Bel's dynamic sales growth in China was
confirmed in Q3 2020.
The sales momentum of all MOM products and
brands stayed buoyant in the New Territories market segment.
Sales by geographic
region
|
Third quarter |
|
|
9 months |
millions of euros |
2020 |
2019 |
% change |
% organic growth |
|
2020 |
2019 |
% change |
% organic growth |
Europe |
459 |
457 |
+0.4% |
+0.7% |
|
1,375 |
1,348 |
+2.0% |
+2.1% |
Middle East,
Greater Africa |
166 |
183 |
-9.4% |
-1.5% |
|
533 |
553 |
-3.7% |
-0.6% |
Americas,
Asia-Pacific |
232 |
226 |
+2.5% |
+7.4% |
|
686 |
624 |
+10.0% |
+10.2% |
TOTAL |
857 |
867 |
-1.1% |
+2.0% |
|
2,594 |
2,525 |
+2.7% |
+3.5% |
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2020 results outlook
The economic environment remains highly
unpredictable, given a persistent global health crisis that is
still growing in many countries.
Nevertheless, Bel remains confident about its
pursuit of innovative and more responsible growth and its aim to
add plant-based products to all its core brands, beginning with the
launch in October of a plant-based version of Boursin in the United
States.
In the second half of the year, Bel expects to
beef up spending to support its brands, notably during the
end-of-the year holiday season, against the backdrop of a tough
health crisis. Bel plans to restart in-store promotional
initiatives, backed by advertising campaigns similar to the one
rolled out for Mini Babybel at the end of September. At the same
time, spending in fast-growing territories like China will continue
apace in the second half.
For 2020, despite the extraordinary costs
arising from managing the health crisis and which impacted
industrial productivity efforts, Bel expects operating margin to
improve over the 2019 performance. The company also confirms its
potential for significantly improving net cash position, notably as
a result of tightly managing working capital requirement and
investment.
With its long-term commitment to champion
healthier food and to conserve the earth's resources encapsulated
in its new "For All. For Good" signature, Bel is fully in sync with
a sustainable and profitable growth model.
Bel's financial performance indicators
The Group uses non-IFRS financial performance
indicators internally and for its external communication. These
non-IFRS indicators are defined below:
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. The organic
growth rate is calculated by applying the exchange rate
for the prior year period to the current year period.
This press release may contain forward-looking
statements. Such trend and/or target information should in no way
be regarded as earnings forecast data or performance indicators of
any kind. This information is by nature subject to risks and
uncertainties that may be beyond the Company's control. A detailed
description of these risks and uncertainties is provided in the
Company's Registration Document, available at (www.groupe-bel.com).
More comprehensive information about the Bel Group can be found in
the "Regulatory Information" section of the www.groupe-bel.com
website.
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 €3.4 billion in 2019.
Some 12,400 employees in some 30 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 32 production sites and distributed in
nearly 120 countries.
www.groupe-bel.com
--------Public relations
Havas Paris - Sarah Duparc
sarah.duparc@havas.com - 01.58.47.82.06 / 06.46.72.39.99
- Bel_Third quarter 2020 financial information_US