Wessanen Q3 2013 trading update

197 views
148 views

Published on

Wessanen's 3rd quarter 2013 trading update

Published in: Investor Relations, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
197
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Wessanen Q3 2013 trading update

  1. 1. Royal Wessanen nv Q3 2013 trading update Amsterdam, 25 October 2013 www.wessanen.co @RoyalWessanen
  2. 2. Q3 performance A continuation of trends witnessed in the first half of 2013 • Rather low consumer confidence; European economies remain depressed • Strong underlying trend of consumers looking for healthier, more sustainable food – • Transformational programme ‘Wessanen 2015’ largely completed – • Lasting growth for organic, natural, free-from and fair trade products Full run-rate savings of €15 mln expected from 2014 onwards Results in the quarter showing mixed picture – Revenue impacted by various initiatives (e.g. cutting the tail, closing Deurne plant) – Underlying revenue growth healthy at Grocery, HFS and IZICO – EBITE increased at Grocery, HFS and IZICO – ABC bringing in weak performance Q3 revenue 16% 42% 14% 28% 2 Grocery HFS IZICO ABC
  3. 3. Q3 2013 key figures In € mln Q3 2013 Q3 2012 Revenue 171.2 175.4 Autonomous growth (2.9)% Normalised EBIT 2.6 7.5 As % of revenue 1.5% 4.3% Exceptional costs / income 6.7 (0.8) EBIT 9.3 6.7 Net result, attributable to equity holders 3.7 3.9 0.05 0.05 Earnings per share (EPS) EBIT contributors Gross margin (%) → Operating costs ↓ Marketing spending 3 ↑
  4. 4. Q3 performance - Grocery • Autonomous revenue 6.4%, driven by 5.3% volume and 1.1% price/mix – Strategic actions impacting growth negatively by about 3% • Integration Alter Eco progressing as planned • Most core brands and categories continue to grow – – Zonnatura aired successfully its 2nd TV campaign “What happened to our food?” – • Bjorg showing strong growth, driven by TV campaign and promotions Rebranding into Kallø been favourable responded to by consumers Clipper has been launched in NL and Germany – Very positive feedback by trade and consumers – Further distribution expansion in France 4
  5. 5. Q3 performance - HFS • Autonomous revenue growth (1.4)% – – • German SAP go-live moved 1.5% volume to Q2 (pre-ordering) Additional (3)% effect of discontinuing most of fruits & vegetables distribution Branded business to perform in line with expectations – • Bonneterre and Evernat growing (inroads at specialty chains and HFS buying groups) Dutch wholesale (Natudis) growing sales, – – • Natuurwinkel stores and independent stores growing Dutch fresh distribution (Kroon) and Belgium operations also up Underlying French wholesale activities growing – Impacted by ceasing distribution of chilled and large part fruit & vegetables – Refocus Bonneterre company going well Q3 revenue split 33% 67% Brands Wholesale 5
  6. 6. Bjorg - 17 new products All launched in September 6
  7. 7. Clipper - Dutch introduction • Available at Albert Heijn (4 variants) • Available at numerous health food stores (8 variants) • Working on further distribution expansion 7
  8. 8. Kallø Extensive rebrand across entire portfolio from autumn 2013 • • • New ‘folk tale’ designs Packaging features hand drawn illustrations and poetry Focus on loving food and embracing life • Available in stores from mid-September 8
  9. 9. Q3 performance - IZICO / ABC • Revenue IZICO impacted by closure Deurne plant / cutting the tail projects – Branded sales up in NL and Belgium, private label growing as well • EBITE clearly improved as result of ‘Wessanen 2015’ • Beckers and Bicky performing well – – • Activation in out-of-home channel (scratch card, ‘Win a Vesta’) Beckers expanded distribution at Albert Heijn At ABC, market weakness for ready-to-drink pouches remained – Market down over 20% in volume and value year-to-date – Daily’s remains clear market leader • Little Hug continued to perform well, delivering double digit revenue growth • Negative EBITE in Q3 (and expected to be as well in Q4). To become profitable again in 2014 9
  10. 10. Net debt development year-to-date In € mln 90 75 60 45 4,1 14 14 3,2 5 3,8 73 55 30 10
  11. 11. Closing remarks • Q3 showing continuation of trends witnessed in first half 2013 • Ongoing positive developments for healthy and sustainable food such as organic, natural, free-from and fair trade products. • Vast majority of our core brands and categories has been growing – We continue to invest in A&P behind our core brands • Transformational program Wessanen 2015 largely completed – On track to deliver annualised cost savings of €15 million p.a. as of 2014 • Encouraged by progress made in Europe year-to-date. Focused to bring the year to a good end and being well-positioned for a good start in 2014 11
  12. 12. Healthy food, healthy people, healthy planet
  13. 13. Segment overview In € mln Revenue Normalised EBIT Q3 13 Q3 12 Q1 13 Grocery 72.7 65.8 ↑ HFS (Health Food Stores) 48.9 48.0 ↑ IZICO 24.7 26.6 ↑ ABC 28.4 36.9 ↓ Non-allocated (3.5)* (1.9)* ↑ Wessanen 171.2 175.4 ↓ * Eliminations for inter-segment revenue (between Grocery and HFS) 13
  14. 14. Revenue breakdown per segment Grocery Health Food Stores 80 40 6.4% (1.4)% 72,7 65,8 48,9 48,0 0 ♦ Autonomous third party revenue growth  €2mln partly exiting German/Italian grocery, delisting Biorganic and exiting UK private label contract ♦ Autonomous third party revenue growth  €1.3mln of discontinued fruit & vegetables business France IZICO ABC (18.2)% (7.2)% 26,6 36,9 24,7 ♦ Autonomous third party revenue growth  €3mln of discontinued volume (closure Deurne plant, cutting the tail) 28,4 ♦ Autonomous third party revenue growth 14
  15. 15. Revenue / EBIT guidance 2013-14 In general, we do not provide guidance on revenue or EBIT(E) for Royal Wessanen. We however do provide specific guidance, on certain topics. Revenue • Grocery: downsizing German and Italian grocery operations, exiting UK private label contract and delisting Biorganic (in NL) – • H1 2014: €(2-3) mln HFS: cutting the tail projects in France and NL – • Q4 2013: €(2.5) mln; Q4 2013: €(2.5) mln; H1 2014: €(3-4) mln IZICO: closing of Deurne plant (as of March 2013) and cutting the tail projects – Q4 2013: €(3.5) mln; Q1 2014: €(4) mln EBIT • Non-allocated expenses are expected to be €10 mln in 2013 • ABC is expected to show a loss of $8-10 mln in 2013 • ABC is expected to be profitable in 2014 • In Q4, in relation to Wessanen 2015, exceptional costs <€(1) mln are expected 15
  16. 16. Q3 financials / FY13 guidance Financials Q3 • Net financing costs €(0.7) mln Q3 2012: €(0.6) mln (restated) • Income tax expenses €(4.9) mln ¹ Q3 2012: €(2.2) mln Guidance FY2013 • Net financing costs €(2-2.5) mln • Effective tax rate around 45% ² • Capex €(6-7) mln • Depreciation and amortisation €(13-14) mln Revised IAS 19 - impacted FY 2012 / yearend 2012 • Personnel expenses - €0.5 mln higher • Net financing costs - €1.1 mln lower • Equally distributed over all four quarters • Equity €9.2 mln higher as at yearend 2012 ¹ Including €2.3 mln addition to provision for uncertain tax positions ² Effective tax rate excludes recognition of provisions for uncertain tax positions 16
  17. 17. Net debt / Leverage ratio In € mln 100 Net debt €73 mln 75 50 25 0 Q3 11 Q4 11 Q1 12 3 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Leverage ratio Q3 13 2.2x 2 1 0 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 17
  18. 18. A very sound financial position In € mln Sept 13 Dec 12 * In € mln Sept 13 Dec 12 * Dec 12 Restated Reported Restated Total equity 115.5 110.8 101.6 - Non-current liabilities 100.4 81.0 90.2 153.0 146.1 146.1 Non-current assets 145.4 154.5 - Current liabilities Current assets 223.5 183.4 Total liabilities 368.9 337.9 TOTAL ASSETS TOTAL EQUITY & LIABILITIES 253.4 227.1 236.3 368.9 337.9 337.9 *Restated for revised IAS19 (employee benefits) 18

×