BON Bonduelle

BONDUELLE

Head office: "La Woestyne" - 59173 Renescure - FranceBonduelle a French S.C.A (Partnership limited by Shares) with a capital of 57 102 699,50 eurosRegistered under number: 447 250 044 (Dunkerque Commercial and Companies Register)

Bonduelle is launching its 3 year transformation program

During a press conference on October 7, 2024, the Bonduelle Group will present its 3 year transformation program “Transform to win” as well as its FY 2023-2024 financial and extra-financial performances.

“Transform to win” is based on a solid strategic review of business activities and aims at restoring the group’s ability to develop as a successful and attractive B Corp company.

The Bonduelle Group closed its fiscal year with higher annual sales and a current operating income above the guidance(1) and is forcasting a stable business activity and profitability for FY 2024-2025(1).

Message from Xavier Unkovic - Chief Executive Officer:

“Transformation is at the heart of our business model, which has been able to reinvent itself in response to the challenge it has faced for over 170 years. Driven by powerful fundamentals - the strong commitment of our teams, healthy and delicious products carried by iconic brands, and our positive impact ambition - the Bonduelle metamorphosis takes on a new dimension.

We operate in a global environment marked by economic and geopolitical uncertainties, consumer tensions and erosion of purchasing power. Facing these challenges, we have kept our commitments and confirmed our ambition to deploy a sustainable business model. With targeted innovations and relevant activations, our brands are expanding.

The coming year will be an important period of transition as we roll out our transformation plan to prepare for a rebound and then an acceleration in our performance in the years ahead.”

“Transform to win”, a transformation supported by 5 pillars:

After a year at the head of the group, which allowed a strategic review of its business activities, Xavier Unkovic announces the launch of a vast transformation program. “Transform to win”, deployed throughout the Bonduelle Group.

This work has confirmed the relevance of the group’s mission regarding plant-rich food and that it operates in attractive market segments in line with strong consumer trends.

The “transform to win” program is built around 5 strategic pillars:

• Performance
• Brands and innovations
• Key geographies
• Operational and organizational efficiency
• Positive impact.

This 3 year plan will create the conditions for transition, then a rebound, and finally an acceleration of the company’s performance around an organization aligned with shared objectives and ambitious strategic planning.

Financial performance

On October 4, 2024, the Supervisory Board, under the chairmanship of Martin Ducroquet, reviewed the statutory and consolidated financial statements for FY 2023-2024 as approved by the General Management and certified by the company's statutory Auditors.

The Bonduelle Group’s sales for the fiscal year 2023-2024 ended June 30, 2024 amounted to 2,371.8 million euros, an increase of +2.7% on a like-for-like basis(1). After taking into account the exchange rate variations, it shows a decline of -1.4% on reported figures.

Current operating income increased by +30.5% on a like-for-like basis(1) and +14.3% on a reported figures with the current operating margin of 3.2% on a reported figures higher than the communicated guidance.

Key figures

(In millions of euros)	2023-2024	2022-2023	Variations
Sales	2,371.8	2,406.2	-1.4%
Current operating income	75.3	65.9	+14.3%
Net result	-119.8	14.5	N/A

Activity by Geographic Region

Total consolidated sales (In millions of euros)	2023-2024	2022-2023	Variation Reported figures	Variation Like-for-like basis(1)
Europe Zone	1,558.2	1,508.1	3.3%	2.9%
Non-Europe Zone	813.6	898.1	-9.4%	2.4%
Total	2,371.8	2,406.2	-1.4%	2.7%

Activity by Operating Segments

Total consolidated sales (In millions of euros)	2023-2024	2022-2023	Variation Reported figures	Variation Like-for-like basis(1)
Canned	1,120.1	1,126.3	-0.5%	6.1%
Frozen	303.0	278.8	8.7%	10.3%
Fresh processed	948.6	1,001.1	-5.2%	-3.3%
Total	2,371.8	2,406.2	-1.4%	2.7%

Europe Zone

The Europe Zone, representing 65.7% of the business activity over the fiscal year, posted a growth over this period of +3.3% on reported figures and +2.9% on a like-for-like basis(1) despite a slowdown in sales reflecting the sluggish consumer climate in the last quarter.

The canned and frozen private label ranges enjoyed a strong growth over the year, reflecting the pressure on purchasing power while the branded Bonduelle and Cassegrain products showed a significant growth over the period, in both retail and food service channels.

The fresh processed (bagged salads) and prepared segment posted stable sales over the period, with salads in Italy and fresh prepared segments reporting growth, whereas salads in France and in Germany were down in a declining market.

Non-Europe Zone

The Non-Europe Zone, representing 34.3% of the business activity over the fiscal year, grew over the 2023-2024 fiscal year by +2.4% on a like-for-like basis(1) (-9.4% on reported figures).

Over the fiscal year, the Eurasia region and emerging countries continue to grow both in volumes and in value thanks to the solid growth of the Bonduelle canned brand and further sustained acceleration in frozen food in retail.

North American activity remained down over the period, while the market-leading Ready Pac branded bowls and salad-kits both grew in volume and value in retail, while the bagged salad segment declined.

Operating income

(In millions of euros)	2023-2024	2022-2023	Variation Reported figures	Variation Like-for-like basis(1)
Sales	2,371.8	2,406.2	-1.4%	+2.7%
Current operating income	75.3	65.9	+14.3%	+30.5%
Current operating margin rate	3.2%	2.7%	+44 bps	+74 pbs

For fiscal year 2023-2024, the Bonduelle Group’s current operating income stands at 75.3 million euros at constant exchange rates compared to 65.9 million euros for the previous fiscal year, i.e., a current operating margin of 3.2% on reported figures higher than the target announced at the beginning of the fiscal year enabled by proactive programs to improve industrial efficiency and tight control of overheads.

The Europe Zone posted an operating margin of 5.1% on a like-for-like basis(1), up 40 bps over the fiscal year, despite a downturn of the business activity in volumes and an increase in private labels.

Growth in current operating income for the Non-Europe Zone and in current operating margin (0.7% on a like-for-like basis(1) vs. -0.6% the previous year) continued, driven in particular by the turnaround in the North American business activities, which benefited from the competitiveness inititiatives launched in 2022-2023 and pursued throughout the year.

Non-recurring items amounted to -145 million euros over FY, mainly comprising the impairment of intangible assets in the fresh segment in North America on the one hand and the 100% impairment of assets from the Saint-Mihiel plant in the Meuse region (France) on the other hand (5 million euros), which closure was announced in a press release dated August 29, 2024. Despite a turnaround in the fresh segment in North America expected to begin in 2023-2024, the anticipated generation of discounted future cash flow is lower than the value of assets concerned, the group impaired the goodwill of this business by 131 million euros.

After taking into account non-recurring items for the fiscal year, the Bonduelle Group operating income reaches -69.7 million euros on a reported figures, compared to 54.1 million euros the previous year.

Net Income

The net financial income came to -35.1 million euros compared with -31.3 million euros at the end of the previous year. The increase was due partly to a rise in working capital requirements, and in particular inventories (volumes effect due to lower consumption, and value effect due to inflation), and partly to the continuing rise of interest rates on the main currencies in which the group operates, partially limited by the hedging instruments in place. The average financing rate thus rose from 4.01% to 4.39%.

Net income from associates amounted to 3.6 million euros compared with 4.4 million euros the previous year, mainly corresponding to the group’s share of income from its minority holding from Nortera Foods.

Income tax expense came to 18.5 million euros, stable compared with the previous year, as it included the non-activation losses from the North American fresh activity and the non-deductibility of the 131 million euros of impairment booked on the same perimeter as non-recurring items.

After taking into account income from associates, financial income and tax expense, the Bonduelle Group’s net income for fiscal year 2023-2024 came to -119.8 million euros compared with 14.5 million euros for the previous fiscal year.

Financial situation

	June 30, 2022 Reported figures	June 30, 2022 Excl. IFRS 16 standards	June 30, 2023 Reported figures	June 30, 2023 Excl. IFRS 16 standards	June 30, 2024 Reported figures	June 30, 2024 Excl. IFRS 16 standards
Net debt (In millions of euros)	362.9	267.9	436.1	356.7	561.9	485.6
Gearing(2)	0.43	0.31	0.56	0.45	0.88	0.75
Leverage ratio(3)	2.63	2.28	2.94	2.84	3.57	3.56

Net debt (excluding IFRS 16) at June 30, 2024 was 485.6 million euros, compared with 356.7 million euros at June 30 of the previous fiscal year. The ratio of debt to the group’s shareholders’ equity (gearing(2)) remains limited to 0.75. The leverage ratio(3) (net debt/REBITDA) amounted to 3.56 compared to 2.84 the previous fiscal year (excluding IFRS 16).

Other significant information and subsequent events

On August 29, 2024 the Bonduelle Group announced plans to sell its packaged salad business in France and Germany.

The Bonduelle Group announced, on August 29, 2024, several projects designed to protect the company’s long-term future:

• the resizing of Bonduelle Frais France, with a plan to streamline head office structures and cease operations at the Saint Mihiel site, with a search for a buyer,
• exclusive negotiations with Les Crudettes, a company of LSDH Group, for the acquisition of its packaged salad business in France,
• and exclusive negotiations with Taylor Farms for the acquisition of its packaged salad business in Germany.

These projects are necessary considering the ongoing decline in the result of the fresh packaged salad business in these countries, to preserve jobs within the Bonduelle Group’s sites in France and Europe. They will shift focus to Bonduelle’s other business operations to enable the group to continue accelerating its activities in the fresh prepared, canned and frozen food markets in these territories.

These transactions are subject to the necessary approvals.

Annual General Meeting on December 5, 2024 - Dividend

During the Annual General meeting to be held on December 5, 2024 a dividend of 0.20 euro per share will be proposed.

Outlook

In a climate of consumption under pressure and consumer concern about their purchasing power, the Bonduelle Group intends to accentuate its policy of accessible innovation through its brand, backed by increased marketing investment, particularly in the American market.

In the meantime, the group will pursue its transformation program initiated in 2023-2024, including the plan to sell its packaged salad business in France and Germany.

In this context, the group’s objective for this transitional year is to achieve a stability of its activity and its current operating income, both on a like-for-like basis(1).

(1) at constant currency exchange rate and scope of consolidation basis. Net sales 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, net sales generated since the acquisition date is excluded from the organic growth calculation;
• For businesses acquired (or gain of control) during the prior fiscal year, net sales 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, net sales 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, net sales 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 events:

- Analysts and investors meeting:         October 7, 2024 - 2024-2025 1st Quarter sales:         November 7, 2024 (after market closing) - Annual Shareholder’s Meeting:        December 5, 2024 - 2024-2025 1st Half Year sales:        February 4, 2025 (after market closing) - 2024-2025 1st Half Year Results:        March 5, 2025 (after market closing) - Analysts and investors meeting:         March 6, 2025

Find all annual results and the schedule of financial publications on www.bonduelle.com

About the Bonduelle Group

We want to inspire the transition toward a plant-rich diet, to contribute to people’s well-being and planet health. We are a French family business with 10,409 employees and we have been innovating with our farming partners since 1853. Our ready-to-use products are cultivated on 69,035 acres and marketed in 100 countries, with sales of 2,371.8 million euros (data as of June 30, 2024)

Our 4 brands are: BONDUELLE, READY PAC BISTRO, CASSEGRAIN, GLOBUS. 

Bonduelle is listed on Euronext compartment B Euronext indices: CAC MID & SMALL – CAC FOOD PRODUCERS – CAC ALL SHARES Bonduelle is part of the Gaïa non-financial performance index and employees shareholder index (I.A.S.) Code ISIN: FR0000063935 - Code Reuters: BOND.PA - Code Bloomberg: BON FP

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.

Attachment

• 2023-2024 Annual Results