Bonduelle - 2020-2021 Annual Results: Business activity and
profitability sustained in an environment subject to sanitary
constraints
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)
2020-2021
Annual Results
(July 1, 2020 - June 30,
2021)
Business activity and profitability
sustained in an environment subject to sanitary
constraints
- Growth of revenue on a like
for like basis(1), contrasted by
technology and distribution channels, impacted by
the sanitary crisis and the related restrictions
- Growth of net profitability
despite the direct and indirect effects of the sanitary situation
and the unfavourable exchange
rate impacts
- Financial debt and
associated ratios under full control
- Sales and profitability
growth expected in 2021-2022
- Strategic review of North
American Long Life activities
On September 24, 2021, the Supervisory Board,
under the chairmanship of Martin Ducroquet, reviewed the statutory
and consolidated financial statements for FY 2020-2021 as approved
by the General Management and certified by the company's statutory
Auditors.
Significant Results
Consolidated Accounts(in €
million) |
2020-2021 |
2019-2020 |
Variations |
Revenue |
2,778.6 |
2,854.9 |
-2.7% |
Current Operating Income |
100.4 |
108.7 |
-7.6% |
Net Result |
57.1 |
54.6 |
+4.6% |
Message from Guillaume
Debrosse - Chief Executive
Officer:"The Bonduelle Group recorded another financial
year of business growth at constant exchange rates and, despite the
sanitary context, retained its profitability.In a consumer
environment far different from the one in which the annual targets
were set, we demonstrate our resilience thanks to a portfolio of
diversified business activities in terms of technologies,
distribution channels and geographical areas.Despite an unstable
and in many ways adverse environment, we have materialised our
purpose, now embedded in our articles of association, through
various initiatives: "Inspire the transition toward a plant-based
diet, to contribute to people’s well-being and planet health."With
caution and determination, in 2021-2022 we intend to continue our
growth trajectory and return to pre-Covid profitability levels, if
necessary, questioning the contribution of our businesses to our
ambition of sustainable growth with a positive impact."
Revenue
At €2,778.6 million, the group's revenue for FY
2020-2021 (July 1, 2020 - June 30, 2021) is up by + 1.6% on a like
for like basis(1), in line with the objectives announced at the
beginning of the FY and down by -2.7% on reported figures. Currency
fluctuations had a particularly unfavourable effect this year,
reducing the group's growth by nearly -4.3% (mainly due to the
strengthening of the Euro against the US dollar, the Russian rouble
and the Canadian dollar).
Activity by Geographic Region
Total consolidated revenue(in €
million) |
2020-2021 |
2019-2020 |
Variation Reported figures |
Variation Like for like
basis(1) |
Europe Zone |
1,271.7 |
1,299.5 |
-2.1% |
-1.9% |
Non-Europe Zone |
1,506.9 |
1,555.3 |
-3.1% |
+4.6% |
Total |
2,778.6 |
2,854.9 |
-2.7% |
+1.6% |
Activity by Operating Segments
Total consolidated revenue(in €
million) |
2020-2021 |
2019-2020 |
Variation Reported figures |
Variation Like for like
basis(1) |
Canned |
1,087.7 |
1,121.5 |
-3.-% |
+1.1% |
Frozen |
655.1 |
685.- |
-4.4% |
-0.2% |
Fresh processed |
1,035.8 |
1,048.4 |
-1.2% |
+3.5% |
Total |
2,778.6 |
2,854.9 |
-2.7% |
+1.6% |
Europe ZoneThe revenue for the
Europe Zone, representing 45.8% of the business activity over FY
2020-2021, posted an overall decline of -1.9% on a like for like
basis(1) and -2.1% on reported figures.In retail, the relative
stability of revenue is mainly due to unfavorable comparison bases
(precautionary purchases in Q3 and Q4 of 2019-2020) and product
shortages resulting from the poor agricultural campaigns of summer
2020. These factors mask the remarkable growth in sales of the
Cassegrain brand in canned food and the Bonduelle brand in the
frozen food segment. The fresh ready-to-eat segment continued to be
heavily penalized by the limited number of sales in retail stores
over a large part of the year, affecting the entire market.The
sanitary crisis and its effects on the food service business
activity once again had a major impact on the frozen and
ready-to-eat fresh segments over a large part of the year. Q4
recorded, with the gradual lifting of sanitary and traffic
restrictions, a significant increase in both technologies.
Non-Europe ZoneThe revenue of
the Non-Europe Zone represents 54.2% of the business activity over
FY 2020-2021, up +4.6% on a like for like basis(1) and down -3.1%
on reported figures. All three technologies posted positive growth
over the financial year on a like for like basis(1).In North
America, the fresh ready-to-eat business activity posted solid
growth over the financial year, helped by a favorable comparison
base and the gradual reopening of restaurants in Q3. However, the
unfavourable sales mix, linked to the sanitary context, weighed
significantly on profitability.The long-life business activities in
North America (canned and frozen), like the European activities,
recorded contrasting activity between distribution networks, which
nonetheless allowed the business to remain stable over the
financial year.The long-life business activities (canned and
frozen) in Russia and Eastern Europe recorded solid growth over the
year despite a depressed consumer environment, thanks to the
resilience of the Bonduelle brand and the growth of the Globus
brand in the canned segment, as well as strong development in the
frozen one related to the successful launch of new locally produced
references.
Operating Profitability
(in € million) |
2020-2021Reported figures |
2019-2020Reported figures |
Variations Reported figures |
Variations Like for like
basis(1) |
Revenue |
2,778.6 |
2,854.9 |
-2.7% |
+1.6% |
Current Operating Profitability |
100.4 |
108.7 |
-7.6% |
-4.-% |
Current Operating Margin Rate |
3.6% |
3.8% |
- 19 bps |
- 21 bps |
For FY 2020-2021, the Bonduelle Group's current
operating profitability stands at € 100.4 million current exchange
rate and € 104.3 million at constant exchange rate compared to €
108.7 last financial year, with a current operating margin of 3.6%,
in line with the objectives set.The long-lasting sanitary crisis on
the one hand, source of additional costs (disinfection, adaptation
of organisations, productivity...) and on the other hand, the
operational difficulties partly linked to this same context faced
by the fresh business segment in North America - additional
logistical costs, inflation, labour shortages, climatic incidents,
fires, illnesses impacting the raw material - had a negative impact
on the current operating result of this financial year, the latter
overshadowed an otherwise solid performance in the long-life
operating segment in Europe, Russia and Eastern Europe, as well as
in North America.Despite this context, the group continued its
policy of developing its brands with an increase of more than 10.-%
in marketing investments and the ongoing deployment of innovations
(Without Pesticide Residues range, etc.).After taking into account
non-recurring items (€ 3.2 million) linked to the various
restructuring operations that took place during the year (takeover
of the assets of the France Champignon Cooperative...), the
Bonduelle Group's operating income stands at € 97.2 million,
compared with € 101.9 million last financial year.
Net Result
The net financial expense stands at € -17.3
million against € -25.9 million last financial year. This
significant improvement is mainly due to a favourable interest rate
effect, the implementation of new competitive financing (NEU CP
programme), with an average cost of debt for the Group at 1.79%
against 2.15% last financial year and a positive exchange rate
result of € 1.2 million. The income tax expense stands at € 22.2
million, against € 21.3 million last financial year and represents
a stable effective tax rate of 28.-%. After taking into account the
tax charge and the financial income, the Bonduelle Group's net
income for FY 2020-2021 stands at € 57.1 million, compared with €
54.6 million last financial year, an increase of +4.6% on reported
figures.
Financial Situation
|
June 30, 2018 |
June 30, 2019 |
June 30,2020Exclud. IFRS
16 Standard |
June 30, 2020Reported
Figures |
June 30,2021Exclud. IFRS
16 Standard |
June 30, 2021Reported
Figures |
Net debt (in millions of
euro) |
617.4 |
654.7 |
631.- |
715.2 |
631.- |
716.- |
Gearing(2) |
0.95 |
0.90 |
0.89 |
1.- |
0.85 |
0.97 |
Leverage ratio(3) |
2.91 |
3.07 |
3.19 |
3.24 |
3.33 |
3.38 |
On June 30, 2021, the Bonduelle Group posted the
same net debt as last financial year at € 631.- million, excluding
the impact of the application of IFRS 16 standard, a debt
leverage(3) of 3.33 (against 3.19 last financial year) and a
gearing(2) down again at 0.85 against 0.89 last financial year.
Once IFRS 16 standard is taken into account, the group's debt
stands at € 716 - million and debt leverage(3) at 3.38.
Highlights
The Bonduelle
Group Shareholders' Meeting adopts the company's
purposeThe Shareholders' Meeting, on
December 17, 2020, adopted with 99.91% of the votes the resolution
to amend its articles of association to include the company's
purpose: "Inspire the transition toward a plant-based diet, to
contribute to people’s well-being and planet health." With this
inclusion in its articles of association, the Bonduelle Group is
thus giving concrete expression to its commitments in terms of
Corporate Social and Environmental Responsibility and its ambition
to achieve the B Corp certification by 2025.
The Bonduelle
Group strengthens its partnership with its vegetable
producers in FranceThe Bonduelle Group and its partners,
OPLvert and OPLINORD, which regroups the vegetable producers of the
Hauts-de-France area, and its partner Euralis Coop for the green
vegetable producers in the South-West of France, have signed
agreements to increase prices in order to finance the increase in
farm income and the agro-ecological transition.This revaluation is
based upon a strong commitment to "runoff" in favour of
agricultural producers, which involves all the actors of the value
chain, in a state of mind in line with that of the États Généraux
de l'Alimentation (General Assembly on Food) in order to perpetuate
one of the main sectors of French agricultural excellence.In
addition, Bonduelle, acting under the authority granted by the
Combined Shareholders' Meeting of December 17, 2020, announced on
June 18, 2021 the completion of the capital increase reserved for
its agricultural partners in France. Through this transaction, the
Bonduelle Group intends to share Bonduelle's value creation and to
strengthen sustainable and close links with the agricultural world
by associating it with its capital, in accordance with its ambition
of sustainable growth with positive impact.
Appointment of a member representing
employees on the Supervisory BoardPursuant to the PACTE
Act of May 22, 2019 and in accordance with the vote of the Company
Shareholders' Meeting of December 17, 2020, the Group Work Council
appointed on April 22, 2021, by an absolute majority, Didier
Cliqué, an electromechanical technician for the technical service
in the plant of Vaulx-Vraucourt (France), as the employee
Supervisory Board member. His three-year term of office took effect
at the Supervisory Board meeting of April 27, 2021.
Once again,
Bonduelle strengthens its financial
flexibility and aligns this financing to sustainable development
objectivesAfter the successful issuance of a NEU CP
program in July 2020, the Bonduelle Group announced on November 30,
2020, the early renewal of its syndicated loan, increasing it from
€ 300 million to € 400 million and indexing the margin on
Environmental, Social and Governance criteria (ESG).This financing
transaction, carried out in a particularly uncertain economic and
financial context, once again underlines the group's financial
strength. The over subscription and the expansion of the pool of
lenders also demonstrate the enthusiasm of financial institutions
for the Bonduelle Group's financial profile.Via its endorsement of
the B Corp certification process, this transaction illustrates the
group's commitments in terms of Social and Environmental
Responsibility, in line with its purpose.
The French Competition Authority
approves the acquisition of the industrial assets of the France
Champignon cooperativeIn a decision dated July 7, 2021,
the French Competition Authority authorized the acquisition of
exclusive control by SCA Cultures France Champignon, a subsidiary
of the Bonduelle Group, of the industrial assets of the France
Champignon agricultural cooperative, which was formalized by a
takeover offer dated December 28, 2020, and the decision of the
Saumur judicial court dated February 18, 2021. The business
activity take over has thus become definitive. Its impact on
Bonduelle's financial statements for the six months ended June 30,
2021, is not significant.
Outlooks
Despite the still uncertain health environment
and a hyperinflationary context, the Bonduelle Group aims to
achieve growth of around 3% in its turnover and a current operating
margin rate of 3.8% to 4,-% , both at constant scope and exchange
rates.The General Management will propose a dividend of 0.45 euro
at the Annual General Meeting on December 2, 2021, to be paid on
January 5, 2022.
Furthermore, as part of the periodic review of
its business portfolio, the Bonduelle Group announces that it has
initiated a strategic review of its Bonduelle Americas Long Life
business unit. This activity, born from the acquisition in 2007 of
Aliments Carrière in Canada and fueled by both internal and
external growth, representing sales for the fiscal year ended June
30, 2021 of more than 600 million euros, is dedicated to the
processing and marketing of canned and frozen vegetables and fruits
in retail channels, mainly in private labels, out-of-home catering
as well as in co-packing of third-party brands evenly split between
USA and Canada. This review aims at assessing the contribution of
this activity towards the Bonduelle Group's ambition of sustainable
growth with a positive impact, as well as its strategic fit with
the priorities defined by its reference controlling shareholder and
validated by its board of directors, in particular, the priority
given to branded activities in its turnover, as a guarantee of both
independence and sustainability.This review, and the resulting
scenarios, should enable Bonduelle Americas Long Life's activities
to pursue their development in a constantly consolidating North
American market and to finance the investments necessary to
increase its profitability.
(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;
- 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 event:
- 2021-2022 1st Quarter Revenue:
November 4 2021
(after stock exchange trading session)- Annual General Meeting:
December 2, 2021-
2021-2022 1st Half Year Revenue:
February 3, 2022
(after stock exchange trading session)- 2021-2022 1st Half Year
Results: March 4,
2022 (prior to stock exchange trading session)
About
the Bonduelle Group
We want to inspire the
transition toward a plant-based diet, to contribute to people’s
well-being and planet health. We are a French family business with
14,700 employees and we have been innovating with our farming
partners since 1853. Our products are cultivated on 124,000 acres
and marketed in 100 countries, with a revenue of € 2,779
million.”Our 6 strong brands are Bonduelle, Cassegrain, Globus,
Arctic Gardens, Ready Pac Foods and Del Monte
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 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
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.
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