Wessanen Q3 2011 analyst&investors presentation
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Wessanen Q3 2011 analyst&investors presentation

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Q3 2011 presentation used for analyst and investors on roadshows

Q3 2011 presentation used for analyst and investors on roadshows

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  • Objective: to gain a understanding of So Good consumers/Soya category. Methodology: 2x focus groups (online); outputs used to create main U&A questionnaire; Online U&A (600 sample); Segmentation & U&A report Sample Focus Group 10-15 Current So Good users Lapsed So Good users (but still in the soya category) Non So Good users (users of other soya products) Category non users (but non rejecters) Online U&A n=200 current So Good users (past 2 months) n=200 So Good non or lapsed users but users of other soya alternatives n=200 dairy alternative non users but non rejecters
  • Objective: to gain a understanding of So Good consumers/Soya category. Methodology: 2x focus groups (online); outputs used to create main U&A questionnaire; Online U&A (600 sample); Segmentation & U&A report Sample Focus Group 10-15 Current So Good users Lapsed So Good users (but still in the soya category) Non So Good users (users of other soya products) Category non users (but non rejecters) Online U&A n=200 current So Good users (past 2 months) n=200 So Good non or lapsed users but users of other soya alternatives n=200 dairy alternative non users but non rejecters

Wessanen Q3 2011 analyst&investors presentation Wessanen Q3 2011 analyst&investors presentation Presentation Transcript

  • Royal Wessanen nv Q3 2011Amsterdam, 27 October 2011
  • Q3 2011 highlights Another quarter with progression Autonomous revenue growth 8.0%  Grocery up 7.5% and ABC 53.5% Grocery continues to perform well showing growing sales and strengthening position of its brands HFS working hard to implement multiple improvements  Autonomous growth (7.1)% Focus at Frozen Foods on both sales growth and managing operating costs. Innovations gaining traction ABC showing a very strong performance this quarter  Benefiting from strongly increased distribution of RTDs 2
  • Q3/9M 2011 key figuresIn € million Q3 2011 Q3 2010 9M 2011 9M 2010Revenue ¹ 174.3 173.4 548.8 539.7Autonomous growth 8.0% 3.5%Normalised EBIT ¹ 6.2 1.6 25.0 18.9As % of revenue 3.6% 0.9% 4.6% 3.5%EBIT ¹ 5.4 1.6 20.9 17.4Net result ² 8.1 1.0 18.0 2.8Earnings per share (EPS) ² 0.11 0.01 0.24 0.04Operating cash flow ¹ 4.2 9.2 0.9 12.9 3 ¹ Continuing operations; ² Attributable to Wessanen equity holders
  • Bridge - revenue growthIn € mln 200 Autonomous revenue growth 8.0% 2.8% 190 5.2% Reported revenue growth (0.8)% 180 (1.9)% 0.5% (4.8)% 170 160 Q3 2010 Volume Price/mix Trading Currency Divestments Q3 2011 days 4
  • Grocery examples of activation Kallo soy launch activity Dairy alternatives key category Kallo core brand, phased out So GoodYearly award magazine „Lebensmittel Praxis“Whole Earth Inka Taler (4 varieties)Criteria based on:Quality/Design/Distribution/Communication/Sustainability Bjorg commercial Based on success of Q2 airing, repeated in September Results: increased awareness, higher sales 5
  • Zonnatura 360°campagne Television Outdoor - busshelter  Sponsoring GTST  Nationwide coverage Radio campaign  Week 43-44  Week 43-45  Week 43-44 In-store  Retail promotions  Week 43-47 Tastings Site In-store tastings tea / bars  Consumer activation In week 44 Social media Free sampling  From week 43 Margriet Winterfair  Week 46-47 6
  • HFS examples of activationAllos cookiesNew range of cookies launchedAvailable in German HFS stores New GooodyFooods store Opened early October in Zaandam 4th store, new ones in the pipeline 7
  • Frozen Food examples of activationBicky Double Chicken burgerIntroduced in October in Belgian out-of-homeFurther extension Bicky rangeNewly designed carton boxSupported by TV commercials and online campaign Online campaign in Flanders (Dutch) and Wallonia (French) 8
  • ABC examples of activation 9
  • Q3 2011 financials Normalised EBIT €6.2 mln, clear increase year-on-year  Driven by strong performances at Grocery and ABC  Increased margins and operational leverage Reported EBIT of €5.4 mln  Includes exceptionals of €(0.8) mln Income taxes €3.8 mln positive  Recognition of tax carry forward losses in US; deferred tax asset of €4.7 mln at quarter-end Operating cash flow €4.2 mln  Negative impact of €9.2 mln due to discontinuation factoring of debtors Net debt fell to €35.9 mln  Leverage ratio 0.9x (Q2 2011: 1.1x)• Additional data available in appendix (e.g. on net debt / cash flow / exceptionals) 10
  • Closing remarks Strategy is clear, we are more focused, and in better shape Different businesses response with different speed to strategic initiatives Going forward, we are cautiously optimistic  A strong team in place  Execution of strategy is progressing To deal with element of uncertainty  Persistently subdued European economic environment  Consumer confidence remains fragile Firmly determined  To improve performance step-by-step  To further solidify our positions and brands 11
  • Appendices
  • Q3 performance 9M performance Revenue (in € mln) Revenue (in € mln) 3.5% 8.0% 539.7 548.8 174.3 173.4♦ Autonomous third party revenue growth ♦ Autonomous third party revenue growth EBIT (in € mln) EBIT (in € mln) 25.0 20.9 5.4 17.4 18.9 6.2 1.6 1.6 Q3 10 Q3 11 9M 10 9M 11♦ Reported, ♦ Normalised ♦ Reported, ♦ Normalised 13
  • Revenue Q3 2011 €174.3 mln ABC WE Grocery Revenue €37.7 mln Revenue €57.5 mln Normalised EBIT €5.2 mln Normalised EBIT €3.8 mln 21% 33%Frozen FoodsRevenue €27.3 mln 15%Normalised EBIT €0.2 mln 31% WE HFS Revenue €54.7 mln Normalised EBIT €(0.5) mln Non-allocated & eliminations Revenue €(2.9) mln Normalised EBIT €(2.5) mln 14
  • Revenue 9M 2011 €548.8 mln ABC WE Grocery Revenue €94.6 mln Revenue €185.2 mln Normalised EBIT €10.4 mln Normalised EBIT €16.2 mln 17% 33%Frozen Foods 15%Revenue €84.0 mlnNormalised EBIT €2.1 mln 35% WE HFS Revenue €194.2 mln Normalised EBIT €3.8 mln Non-allocated & eliminations Revenue €(9.2) mln Normalised EBIT €(7.5) mln 15
  • Bridge - revenueIn € mln180 €2.9 €(13.6) €11.2 €0.2 €174.3175 €173.4170165 €0.2160 Q3 2010 Grocery HFS Frozen ABC Inter- Q3 2011 Foods segment eliminations 16
  • Bridge - normalised EBITIn € mln 10 8 €5.9 €6.2 6 €(0.1) €1.6 €(1.9) 4 €1.6 €(0.9) 2 0 Q3 2010 Grocery HFS Frozen ABC Corporate Q3 2011 Foods entities 17
  • EBIT - from normalised to reported Q3 2011 Q3 2010 Normalised EBIT 6.2 1.6 Grocery Release restructuring provisions 0.2 - HFS Mainly exchange loss deferred in equity (2.0) - ABC Minor asset adjustments 0.2 - ABC Net reversal impairment losses 0.8 - EBIT 5.4 1.6 18
  • Cash flow Q3 2011 In € mln 13.9 (10.7) Derivatives 0.5 and FX (1.5) Net Investments Decrease working 4.9 capital Discontinuation (9.2) Factoring France Grocery Cash flow from 8.5 earnings Reduction 3.2 of net debt Sources Uses 19
  • Net debt and leverage ratio In € mln 250 Net debt 200 150 100 €35.9 mln 50 0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 5 Leverage ratio 4 3 2 0.9x 1 0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 20
  • Financial guidance 2011 Net financing costs €3-4 mln  2010: €(8.3) mln; 2009: €(19.9) mln Effective tax rate around 25-30%  Excluding recognition of deferred tax assets regarding tax carry forward losses  2010 impacted by country mix and non-deductible impairments, partly compensated by recognition tax losses Depreciation and amortisation (excl. impairments) about €14 mln  2010: €(14) mln Capex about €10-11 mln  2010: €11.5 mln Non-allocated expenses (incl. corporate) around €10 mln  2010: €(12.3) mln (normalised €(10.2) mln) 21
  • Wessanen Europe Grocery Revenue growth remained robust, growing by 5.3% to Revenue (in € mln) €57.5 million 7.5% Continued focus on core brands, making further progress in areas such as brand activation, innovations and operational excellence  Bjorg continues to gain market share 57.5  Zonnatura launched sizeable 360º activation 54.6 campaign * Focus on organic teas and its natural taste  Range of soy milks relaunched under Kallo brand ♦ Autonomous third party revenue growth * Diary alternatives European core category * 1 strong brand, therefore phased out So Good EBIT (in € mln)  Bjorg launched on German market * Its nutritional positioning complementary to indulgence of Whole Earth Normalised EBIT up to €3.8 million 4.0  Increased revenue and higher gross margin % 2.2 2.2 3.8 Q3 10 Q3 11 ♦ Reported, ♦ Normalised 22
  • Wessanen Europe HFS Revenue down 19.9% Revenue (in € mln)  Divestment TOL UK (12.2% impact) Autonomous revenue (7.1)% (7.1)%  >2% decline due to weak performance Kalisterra • Divested as of 1 October Brands performing satisfactorily 68.3  Focus on brand activation and innovations 54.7  Brands such as Allos, Bonneterre, De Rit At wholesale activities working hard on implementing ♦ Autonomous third party revenue growth multiple improvements, several yet to translate in EBIT (in € mln) tangible results  Focus on operational excellence and expanding Dutch own format stores 1.4 1.4 -2.5 -0.5 Q3 10 Q3 11 ♦ Reported, ♦ Normalised 23
  • Frozen Foods Autonomous revenue growth 0.8% Revenue (in € mln)  Branded up due to Belgian out-of-home, export 0.8%  Somewhat lower volumes at Dutch retail and out-of-home  Private label about stable 27.3 EBIT decreased to €0.2 million 27.1  Increased raw material prices  Marketing spending in line with last year ♦ Autonomous revenue growth In October, Bicky Double Chicken burger introduced in Belgian out-of-home EBIT (in € mln)  Further extension of Bicky range  Supported by TV commercials and online 1.1 0.2 Q3 10 Q3 11 ♦ Reported 24
  • American Beverage Corporation Very strong Q3, driven by success Daily’s RTD pouches Revenue (in € mln)  Development right packaging concepts  Change distribution strategy to serve grocery chains 53.5%  Consistent execution  Attractive price-value positioning 37.7 Daily’s bag-in-a-box and premixes doing well either 26.5 Little Hug stable sales  Continued competitive activity ♦ Autonomous revenue growth  Active pruning/de-emphasising lower margin products EBIT (in € mln)  20-count doing well / new packaging  Revitalisation continues 2011: EBIT in range of US$17-19 mln; autonomous revenue expected to show strong growth year-on-year 6.2 5.2 2012: further revenue and earnings growth -0.7 -0.7 Q3 10 Q3 11 ♦ Reported, ♦ Normalised 25