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Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
Wessanen Q1 2011 (28 April 2011)
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Wessanen Q1 2011 (28 April 2011)

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Q1 2011 highlights …

Q1 2011 highlights
• Revenue +3.6% to €178.8 million,
• Autonomous² revenue growth Wessanen Europe Grocery 5.9% and HFS (6.1)%
• Ongoing focus to improve operations in areas such as brand activation and central sourcing
• Normalised operating result (EBIT) increased to €7.0 million, driven by Wessanen Europe Grocery
• Market share gains for leading Grocery brands such as Bjorg, Whole Earth and Zonnatura
• Net debt €36.7 million; 45% below last year’s comparable figure

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  • 1. Royal Wessanen nv Q1 2011 Amsterdam, 28 April 2011
  • 2. Q1 2011 key figures ¹ Continuing operations; ² Attributable to Wessanen equity holders 2.0x 66.2 (14.3) (0.07) (4.8) 6.4 6.4 172.6 Q1 2010 - 0.06 Earnings per share (EPS) ² (5.2) Operating cash flow ¹ (44.6)% 36.7 Net debt 9.4% 7.0 ‘ Normalised’ EBIT ¹ 1.1x 4.5 8.1 0.2% 178.8 Q1 2011 Autonomous growth - Net result ² 26.6% EBIT ¹ - Leverage ratio Revenue ¹ In € million 3.6% In %
  • 3. EBIT - from reported to ‘normalised’ <ul><li>Wessanen Europe Grocery </li></ul><ul><ul><li>Release provision €0.8mln </li></ul></ul><ul><ul><li>Restructuring provision Belgian activities €(0.3) mln </li></ul></ul><ul><li>Wessanen Europe HFS </li></ul><ul><ul><li>Release provision €0.6mln </li></ul></ul>6.4 7.0 ‘ Normalised’ EBIT 6.4 8.1 EBIT - 1.1 Exceptionals Q1 2010 Q1 2011 0.5 WE Grocery 0.6 WE HFS Exceptionals
  • 4. Q1 2011 highlights <ul><li>Started 2011 as a stronger, more focused company </li></ul><ul><li>Central sourcing efforts starting to pay off, contributing to offset increased raw material costs </li></ul><ul><ul><li>In general, expect to be successful in raising prices, if and where needed </li></ul></ul><ul><li>Market share gains for leading Grocery brands </li></ul><ul><li>Numerous initiatives underway, such as </li></ul><ul><ul><li>Brand activation </li></ul></ul><ul><ul><ul><li>Such as Zonnatura biorhythm campaign </li></ul></ul></ul><ul><ul><li>Innovations </li></ul></ul><ul><ul><ul><li>Such as Bjorg lunchboxes, Allos Frucht Pur </li></ul></ul></ul><ul><ul><li>Embark on process to delist low-margin products </li></ul></ul><ul><ul><li>Nationwide distribution of fresh products in the Netherlands </li></ul></ul><ul><ul><li>Third GooodyFooods store opened in Almere </li></ul></ul><ul><ul><ul><li>Expect to realise 5-10 openings per annum </li></ul></ul></ul><ul><ul><li>Managed withdrawal Grocery Belgium </li></ul></ul>
  • 5. Innovations - some examples
  • 6. Brand activation - Zonnatura Biorhythm
  • 7. European brand-platform-category map <ul><li>Organic Nutrition </li></ul><ul><li>Dairy alternatives </li></ul><ul><li>Biscuits (nutrition) </li></ul><ul><li>Bread replacers </li></ul><ul><li>Cereals </li></ul><ul><li>Tea </li></ul><ul><li>Spreads (nutrition) </li></ul><ul><li>Organic Taste-Indulgence </li></ul><ul><li>Spreads </li></ul><ul><li>Biscuits </li></ul><ul><li>Cereals </li></ul><ul><li>Juices </li></ul><ul><li>Organic Taste-Cooking </li></ul><ul><li>Condiments </li></ul><ul><li>Bouillon, Stock & Gravies </li></ul><ul><li>Meal components </li></ul><ul><li>Ready meals </li></ul>France Grocery HFS TBD TBD TBD Netherlands Grocery HFS Germany Grocery HFS UK Grocery HFS TBD TBD Other Europe Grocery HFS TBD Consumer Benefit Platform <ul><li>Organic Basics </li></ul><ul><li>Multi categories </li></ul>TBD TBD TBD TBD TBD TBD TBD TBD
  • 8. Strategic objectives 2011-2013 <ul><li>Top-line growth </li></ul><ul><ul><li>Market share gains in core categories and brands </li></ul></ul><ul><ul><li>Add-on acquisitions </li></ul></ul><ul><li>Improve EBIT-margins </li></ul><ul><ul><li>Increase gross margins (central sourcing savings, richer product mix) </li></ul></ul><ul><ul><li>Manage non-core brands for cash </li></ul></ul><ul><ul><li>Increase capacity utilisation own factories </li></ul></ul><ul><ul><li>Reduce overhead costs </li></ul></ul><ul><li>Grow our export business and aim to establish footprint in other European countries </li></ul><ul><li>Improve operational performance / Establish cross-country organisation </li></ul><ul><li>Raise the overall talent bar / Increase people engagement </li></ul>
  • 9. Closing remarks <ul><li>Started 2011 as a stronger, more focused company </li></ul><ul><li>Numerous good initiatives underway </li></ul><ul><ul><li>Central sourcing, SAP implementations, brand activation </li></ul></ul><ul><li>Also still have to improve in various areas and businesses </li></ul><ul><ul><li>Notably Wessanen Europe HFS </li></ul></ul><ul><li>Step-by-step improvement of sales and, subsequently, earnings performance </li></ul><ul><li>We are on the right track and we will see the first evidence in 2011 with more to come in the coming years </li></ul>
  • 10. Appendices
  • 11. Royal Wessanen - who we are <ul><li>A long and rich history as a food company </li></ul><ul><li>Incorporated in 1765; Royal since 1913; listed on Euronext since 1959 </li></ul><ul><li>2010 revenue €712 mln; over 2,200 employees </li></ul><ul><li>Headquartered in Amsterdam </li></ul><ul><ul><li>Operations in the Benelux, France, Germany, UK, Italy, USA </li></ul></ul><ul><li>A leading player in the major organic food markets in Europe </li></ul><ul><li>Frozen Foods: leading frozen snacks producer/marketer in Benelux </li></ul><ul><li>ABC: leading producer fruit drinks/cocktail mixers in USA </li></ul>
  • 12. Revenue 2010 €712 mln WE Grocery Revenue €231 mln EBITDA €12 mln Avg. Capital Employed €66 mln FTE’s (year-end) 435 Frozen Foods Revenue €116 mln EBITDA €9 mln Avg. Capital Employed €56 mln FTE’s (year-end) 505 WE HFS Revenue €273 mln EBITDA €11 mln Avg. Capital Employed €95 mln FTE’s (year-end) 837 ABC Revenue €93 mln EBITDA €7 mln Avg. Capital Employed €46 mln FTE’s (year-end) 382 Corporate centre & non-allocated EBITDA €(11) mln FTE’s (year-end) 63
  • 13. Net debt and leverage ratio Net debt Leverage ratio € 36.7 mln 1.1x In € mln
  • 14. Cash flow Q1 2011 In € mln
  • 15. Financial guidance 2011 <ul><li>Net financing costs €(4-5) mln </li></ul><ul><ul><li>2010: €(8.3) mln (2009: €(19.9) mln) </li></ul></ul><ul><li>Effective tax rate around 35% </li></ul><ul><ul><li>2010 impacted by country mix and non-deductible impairments, partly compensated by recognition tax losses </li></ul></ul><ul><li>Capex around level of depreciation of €(15) mln </li></ul><ul><ul><li>2010: €(11.5) mln (2009: €(9.5) mln) </li></ul></ul><ul><li>Non-allocated expenses (incl. corporate) around 2010 normalised level </li></ul><ul><ul><li>2010: €(12.3) mln (normalised €(10.2) mln) </li></ul></ul><ul><li>Some reconfigurations low value-added distribution activities Wessanen Europe HFS </li></ul><ul><ul><li>Possibly leading to limited restructuring costs </li></ul></ul>
  • 16. Priorities 2011 <ul><li>Wessanen Europe Grocery and Wessanen Europe HFS: </li></ul><ul><ul><li>Achieve revenue growth and gain market share </li></ul></ul><ul><ul><li>Increase success rate of innovations </li></ul></ul><ul><ul><li>Improve operating margins through focus on core brands and strengthening of brand equity </li></ul></ul><ul><ul><li>Improve operational excellence </li></ul></ul><ul><li>Frozen Foods: </li></ul><ul><ul><li>Increase relevance of Beckers and Bicky brands for our customers and consumers </li></ul></ul><ul><ul><li>Improve operational efficiency by continuously improving quality of processes, systems and production </li></ul></ul><ul><li>ABC: </li></ul><ul><ul><li>Build brand equity and improve distribution for sales growth and margin improvement </li></ul></ul><ul><ul><li>Intention to divest, in principle, in 2011 </li></ul></ul><ul><li>Financing policy </li></ul><ul><ul><li>Aim to maintain net debt structurally below 2.5x EBITDA </li></ul></ul>
  • 17. Wessanen Europe Grocery <ul><li>Revenue +7.7% </li></ul><ul><ul><li>Autonomous growth 5.9% </li></ul></ul><ul><ul><ul><li>Volume 5.7%; Price/mix 0.2% </li></ul></ul></ul><ul><ul><li>Currency effect 0.4%; trading days 1.4% </li></ul></ul><ul><li>Normalised operating result €5.9 mln </li></ul><ul><ul><li>Increased ICT spending </li></ul></ul><ul><ul><li>Lower A&P spending, partly due to phasing </li></ul></ul><ul><li>Exceptional gain €0.5 mln </li></ul><ul><ul><li>€ 0.8 mln due to release provision </li></ul></ul><ul><ul><li>€ (0.3) mln due to managed withdrawal Belgium </li></ul></ul><ul><li>Brands such as Bjorg, Kallo and Whole Earth gaining market share </li></ul><ul><li>In Benelux, Zonnatura and Biorganic volumes up </li></ul><ul><li>Further expansion of distribution in German grocery </li></ul><ul><li>Gaining distribution in Italy </li></ul>5.9% EBIT (in € mln) Revenue (in € mln)  Reported,  ‘Normalised’  Autonomous third party revenue growth
  • 18. Wessanen Europe HFS <ul><li>Revenue decreased (0.6)% </li></ul><ul><ul><li>Autonomous growth (6.1)% </li></ul></ul><ul><ul><ul><li>Volume (3.5)%, price/mix (2.6)% </li></ul></ul></ul><ul><li>Normalised EBIT Є2.3 mln </li></ul><ul><ul><li>Lower volumes in France and Benelux </li></ul></ul><ul><ul><li>Higher operating expenses, mainly ICT related </li></ul></ul><ul><li>€ 0.6 mln exceptional gain as result of release provision </li></ul><ul><li>Benelux sales impacted by increased competition </li></ul><ul><ul><li>±30 Natuurwinkels at year-end following departures </li></ul></ul><ul><ul><li>3 rd GooodyFooods opened in Almere </li></ul></ul><ul><ul><li>Natudis in nationwide distribution fresh products </li></ul></ul><ul><li>French market slightly recovering. Bonneterre up, while fresh and food supplements down </li></ul><ul><li>Growth in German market varying per category </li></ul><ul><ul><li>‘ Our’ categories stable, while we posted growth </li></ul></ul><ul><li>Tree of Life UK turned in solid performance </li></ul>(6.1)% EBIT (in € mln) Revenue (in € mln)  Reported,  ‘Normalised’  Autonomous third party revenue growth
  • 19. Frozen Foods <ul><li>Revenue down 5.9% </li></ul><ul><ul><li>Autonomous growth (7.9)% </li></ul></ul><ul><ul><ul><li>Volume (8.7)%, price/mix 0.7% </li></ul></ul></ul><ul><ul><li>Branded volumes up, private label down </li></ul></ul><ul><ul><li>In general, competition remained fierce </li></ul></ul><ul><li>EBIT in line with last year </li></ul><ul><ul><li>Lower gross margin due to lower revenue and increased raw material prices </li></ul></ul><ul><ul><li>Lower marketing expenses </li></ul></ul><ul><ul><ul><li>Phasing </li></ul></ul></ul><ul><ul><ul><li>In 2010 introduction of Mammoet frikandel </li></ul></ul></ul><ul><li>Focus remains on revitalising Beckers </li></ul><ul><ul><li>New campaign “The Family Man 2011” </li></ul></ul>(7.9)% EBIT (in € mln) Revenue (in € mln)  Autonomous revenue growth
  • 20. American Beverage Corporation <ul><li>Revenue up 23.1% in US dollar terms </li></ul><ul><ul><li>Autonomous growth 21.6% </li></ul></ul><ul><ul><ul><li>Volume 13.9%, price/mix 7.7% </li></ul></ul></ul><ul><li>EBIT of US$1.0 mln in line with expectations </li></ul><ul><li>Daily’s doing well, driven by success RTD pouches </li></ul><ul><ul><li>Additional RTD line has been installed </li></ul></ul><ul><ul><li>National roll-out large customer nearing completion </li></ul></ul><ul><li>Little Hug showing lower volumes </li></ul><ul><ul><li>Lapping bonus pack promotion last year </li></ul></ul><ul><ul><li>Continued intense competitive activity </li></ul></ul><ul><li>A&P in line with last year </li></ul><ul><ul><li>Upgrading of Little Hug packaging </li></ul></ul><ul><ul><li>New print advertising with key benefits such as </li></ul></ul><ul><ul><li>“ 75% less sugar” </li></ul></ul><ul><ul><li>Print advertising Daily’s updated </li></ul></ul>21.6% EBIT (in € mln) Revenue (in € mln)  Autonomous revenue growth
  • 21.  

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