Bonduelle - First Half Year 2020-2021 Revenue: a context of a
sanitary crisis generating contrasted growth in business activity
BONDUELLE
A French SCA (Partnership Limited by Shares) with
a capital of 56 942 095 EurosHead Office: La Woestyne 59173
Renescure, FranceRegistered under number: 447 250 044
(Dunkerque Commercial and Companies Register)
First Half Year 2020-2021
Revenue(July 1 – December 31, 2020)
A context of a sanitary crisis
generating contrasted growth in business
activity
The Bonduelle Group's revenue stands for the 1st
half of financial year 2020-2021 at € 1,441.5 million, stable at
-0.1% on reported figures and an increase of +3.9% on a like for
like basis*.The negative effects of currency exchange rates
contributed to -4.-% on the published variation for the 1st half of
the financial year, explained by a strengthening of the Euro,
particularly against the Russian rouble and the US and Canadian
dollars. No change in the group's scope of consolidation occurred
over the period.Second quarter revenue posted an increase of +0.4%
on reported figures and +5.8% on a like for like basis*, with all
three technologies making a positive contribution over the period
on a constant consolidation scope and exchange rate basis.
Activity by Geographic
Region
Total Consolidated Revenue(in €
millions) |
1st HY 2020-2021 |
1st HY2019-2020 |
Variation Reported figures |
Variation Like for like
basis* |
2nd Quarter2020-2021 |
2nd Quarter2019-2020 |
Variation Reported figures |
Variation Like for like
basis* |
Europe Zone |
648.- |
640.4 |
1.2% |
1.5% |
333.- |
322.6 |
3.2% |
3.7% |
Non-Europe Zone |
793.5 |
801.9 |
-1.1% |
5.8% |
428.- |
435.4 |
-1.7% |
7.4% |
Total |
1,441.5 |
1,442.3 |
-0.1% |
3.9% |
761.- |
758.- |
0.4% |
5.8% |
Activity by Operating
Segments
Total Consolidated Revenue(in €
millions) |
1st HY 2020-2021 |
1st HY2019-2020 |
Variation Reported figures |
Variation Like for like
basis* |
2nd Quarter2020-2021 |
2nd Quarter2019-2020 |
Variation Reported figures |
Variation Like for like
basis* |
Canned |
589.- |
559.2 |
5.3% |
10.5% |
332.7 |
314.2 |
5.9% |
12.5% |
Frozen |
332.- |
340.3 |
-2.4% |
1.3% |
179.6 |
186.5 |
-3.7% |
0.9% |
Fresh processed |
520.5 |
542.8 |
-4.1% |
-1.1% |
248.6 |
257.3 |
-3.4% |
1.1% |
Total |
1,441.5 |
1,442.3 |
-0.1% |
3.9% |
761.- |
758.- |
0.4% |
5.8% |
Europe ZoneThe growth of
revenue for the Europe Zone, representing 45.-% of the business
activity over the period, posted for the 1st half of the financial
year a global change of +1.2% on reported figures and +1.5% on a
like for like basis*.Changes in the second quarter amounted to
+3.2% and +3.7% respectively.Long life operating segments (canned
and frozen food) in the retail business activity posted robust
growth over the 1st half of the year and even more so in the second
quarter, particularly in the branded products (Bonduelle and
Cassegrain), due to the sanitary crisis and its related measures
(curfews, etc.) leading to a renewed interest in these product
categories with long shelf lives. This phenomenon has made it
possible to absorb the sharp drop in activity in the food service
business segment, particularly noticeable in frozen food, still at
a standstill over the period (closure of commercial catering,
home-working, etc.) and in fresh food, this market declined
significantly, in the 3 related countries (France, Italy, Germany),
as a result of lower in-store traffic, the driving force behind the
purchasing act.Taking into account the seasonality of production
and the once again difficult crops observed in the summer of 2020,
the high level of activity recorded at the beginning of the
financial year could be reduced, in the long term, by product
shortage, and therefore a loss of sales in the spring of 2021 on a
high basis of comparison.
Non-Europe ZoneThe revenue of
the Non-Europe Zone, representing 55.-% of the revenue of the
group, is at -1.1% on reported figures and up +5.8% on a like for
like basis*, changes in the second quarter are -1.7% and +7.4%
respectively.All three technologies posted positive growth in the
region, both in the second quarter and over the half year as a
whole.In North America, the long life operating segment (canned and
frozen food) recorded solid growth over the period, with
supermarket sales, particularly branded sales (Arctic Gardens and
Del Monte), and B2B sales more than offsetting an out-of-home
catering business impacted by the health crisis, even if the
downturn was less severe than in Europe.Despite a difficult
agricultural context observed on the west coast as a result of the
autumn fire coupled with unequalled difficulties in recruiting
workers and a health situation that was unfavorable to on-the-go
consumption, the overall ready-to-eat fresh business segment and
customer service levels were maintained in the United States, at
the price of significant additional supply and production costs and
an unfavorable product mix (bagged salads vs. bowls), while
business in Canada continued to grow.In Russia and the countries of
the Commonwealth of Independent States, the sanitary crisis
context, strongly impacting the economy and purchasing power on the
one hand, and the strategy of preserving margins, involving price
increases in a context of imported inflation on certain cost
components on the other hand, finally, arbitrations in favor of
Bonduelle and Globus branded canned products to the detriment of
private labels limited the overall volumes of the canned operating
segment, while the frozen food one, based on local production and
still limited in size, continued to grow.
Other significant
informations
Bonduelle submits an offer to take over
the industrial assets of the Coopérative France
ChampignonThe Bonduelle Group announces that it has filed
on December 21, 2020 an offer to take over the industrial assets of
the Coopérative France Champignon, put into receivership by court
ruling on November 12, 2020 and concomitantly a notification to the
French Competition Authority on December 21, 2020.In accordance
with the group's press release of November 5, 2020, Bonduelle is
thus actively participating with its mushroom producing partners in
the search for solutions to ensure the sustainability of the sector
in order to allow all stakeholders to find a satisfactory economic
balance and supplying the French market with processed mushrooms
from a quality French sector.The financial impact resulting from
the difficulties of the Coopérative Agricole France Champignon on
the Bonduelle Group will depend on the decision of the Tribunal
Judiciaire (Combined Court) of Saumur, to come in February,
regarding the designated buyer, and the retained sale’s terms.
The Bonduelle Group's Shareholders'
Meeting adopts the company's “Raison d'être”The
Shareholders' Meeting of December 17, 2020, adopted by 99.91% of
the votes the resolution to amend its articles of association to
include the company's “Raison d'être”: “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 B Corp certification by
2025.
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).Signed with an enlarged pool of 11 banks (9 banking groups),
this syndicated loan, with impact, includes a single tranche of
revolving credit (RCF - Revolving Credit Facility) significantly
oversubscribed and refinances the existing RCF of € 300 million
that was due to mature in July 2021.By the completion of this
transaction, the Bonduelle Group achieves several objectives:
- strengthened financial flexibility: due to its business model,
the group has seasonal working capital financing requirements that
are easily met by the Revolving Credit Facility principle;
- an extended average maturity of the group's debt (maturity of 5
years in fine);
- competitive financing on the basis of the negotiated margin
grid and the optimization of this syndicated loan through a Neu CP
program launched in July 2020;
- an indexation of the margin in line with the group's Corporate
Social Responsibility (CSR) objectives and its plan to obtain B
Corp certification (certification covering a very broad set of ESG
criteria) for all its activities by 2025;
- a banking pool extended to new partners, both French and
international, reflecting the group's growing internationalization
and strengthening its platform of partners.
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
“raison d'être”.
Outlooks
The changes observed due to the sanitary crisis
over the 1st half of the year and at the beginning of 2021
partially affect the assumptions used to draw up the objectives for
2020-2021 financial year communicated in October 2020, in
particular those related to the development of the out-of-home
catering business.Despite overall business activity being
preserved, additional costs and unfavorable change in product mix
and distribution channels linked to the sanitary crisis and
difficult harvest conditions, particularly on the fresh
ready-to-use business in North America, and the expected shortage
on certain product categories will impact the profitability outlook
for the financial year.
* 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.
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:
- 2020-2021 1st Half Year
Results:
February 26, 2021 (prior to stock exchange trading session)-
2020-2021 3rd Quarter FY
Revenue: May 3,
2021 (after stock exchange trading session)
About
Bonduelle
Bonduelle, a family
business, was established in 1853. Its mission is to be the world
reference in "well-living" through plant-based food. Prioritizing
innovation and long-term vision, the group is diversifying its
operations and geographical presence. Its vegetables, grown over
almost 120,000 hectares all over the world, are sold in 100
countries under various brand names and through various
distribution channels and technologies. An expert in agro-industry
with 56 industrial sites or owned agricultural production sites,
Bonduelle produces quality products by selecting the best crop
areas close to its customers.
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
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