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 Financial
Results(July 1 - December 31, 2020)
Resilience in activity and profitability
in a particularly volatile and uncertain sanitary, economic and
financial environment
- Global business activity growing with underlying contrasts
according to geographical areas and business sectors
- Resilience of profitability despite the direct and indirect
effects of the sanitary crisis and difficult harvests, which were
particularly marked in the fresh prepared food operating segment in
North America
- A sound financial situation, controlled ratios, secured
financing
- Initial annual objectives validated but subject to the
evolution of the sanitary context
- The Bonduelle Group's purpose approved at the Shareholders'
Meeting
- Bonduelle, partner of the agricultural world: dedicated capital
increase and agreement to share price revaluations in France
Comments from Guillaume Debrosse, Chief
Executive Officer:
"This first half of the year was marked by a
still volatile economic environment and the persistence of the
Covid-19 global pandemic. Nevertheless, in this context, the
Bonduelle Group, with its diversity of technologies, distribution
channels and geographical areas, continues to show resilience in
its business activity and results and is continuing on its path: we
want to become a company that combines financial performance and
positive impact, and are aiming for B Corp. certification. This
path implies a profound transformation, a key stage of which has
been reached with the inclusion in the company's articles of
association of a purpose shared with employees and shareholders:
"To inspire the transition toward a plant-based diet, to contribute
to people’s well-being and planet health". A strong feeling unites
us: never before has the framework of the actions we are taking to
become a company with a positive impact been as relevant as it is
today. In the unprecedented circumstances of the sanitary crisis,
it gives meaning to the commitment of our teams, creates value for
our stakeholders and ensures better risk management.”
********
The 2020-2021 half-year financial statements
were approved by the General Partner, then reviewed by the
Supervisory Board of February 25, 2021 and by the Statutory
Auditors.
Significant Results
(in € millions) |
1st HY 2020-2021 |
1st HY 2019-2020 |
Variation |
Revenue |
1,441.5 |
1,442.3 |
-0.1% |
Current Operating Income |
56.3 |
57.2 |
-1.5% |
Current Operating Margin |
3.9% |
4.-,% |
-6 bps |
Consolidated Net Income |
31.9 |
29.5 |
+8.3% |
Gearing(1) exclud. IFRS 16 |
1.20 |
1.24 |
|
Revenue
The Bonduelle Group's revenue stands for the 1st
half of financial year 2020-2021 at € 1,441.5 million, flat at
-0.1% on reported figures and an increase of +3.9% on a like for
like basis(2). The negative effects of currency exchange rates
contributed to -4.-% on the reported 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.
Activity by Geographic
Region
Total Consolidated Revenue(in €
millions) |
1st HY 2020-2021 |
1st HY2019-2020 |
Variation Reported figures |
Variation Like for like
basis(2) |
Europe Zone |
648.- |
640.4 |
1.2% |
1.5% |
Non-Europe Zone |
793.5 |
801.9 |
-1.1% |
5.8% |
Total |
1,441.5 |
1,442.3 |
-0.1% |
3.9% |
Activity by Operating
Segments
Total Consolidated Revenue(in €
millions) |
1st HY 2020-2021 |
1st HY2019-2020 |
Variation Reported figures |
Variation Like for like
basis(2) |
Canned |
589.- |
559.2 |
5.3% |
10.5% |
Frozen |
332.- |
340.3 |
-2.4% |
1.3% |
Fresh processed |
520.5 |
542.8 |
-4.1% |
-1.1% |
Total |
1,441.5 |
1,442.3 |
-0.1% |
3.9% |
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(2).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(2). All three technologies posted positive growth in the
region 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, Bonduelle and Del Monte), and B2B
sales more than offsetting an out-of-home catering business
impacted by the sanitary 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 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).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. The frozen food
one, based on local production and still limited in size, continued
to grow.
Operating income
The current operating income of the Bonduelle
Group for the 1st half year of 2020-2021 stands at € 56.3 million,
up 5.2% on like-for-like basis (2) and down 1.5% on reported
figures. The current operating margin of 3.9% shows a slight
decline compared to the first half of the previous year and is
stable at 4.-% at constant exchange rates. In line with the
ambitions announced at the beginning of the financial year, the
Bonduelle Group further strengthened its marketing investments,
increasing the visibility of its brands and resulting in
significant gains in market share.The Europe Zone posted a
significant increase in profitability to € 35.4 million on a
like-for-like basis(2) , representing a current operating margin of
5.4%, helped by the good performance of the long-life retail
business and the resilience of the profitability of the fresh food
business, which held up well despite the decline in revenue.In the
Non-Europe Zone, the current operating profitability stands at 24.7
million, representing a current operating margin of 2.9% on a
like-for-like basis(2). In this area, the underperformance of the
fresh prepared business (salad bowls, salad kits and bagged salads)
due to agricultural supply difficulties coupled with additional
costs related to the sanitary crisis and an unfavorable business
mix, masked the remarkable performance of the canned and frozen
business activities observed in North America, Russia & CIS and
Export.After taking into account non-recurring items, including
costs related to the takeover of the assets of the France
Champignon Cooperative, the operating income rose to € 54.-
million, compared with € 52.6 million for the same period of
the previous financial year.
Net result
The net financial result stands at € 9.9
million, down € 2.5 million, in line with the decrease in the
group's financing costs and a break-even exchange rate result over
the period. Corporate income tax expenses amounted to € 12.1
million compared to € 10.6 million in the first half of the
previous financial year, an increase explained by the end of the
use of tax loss carryforwards and the decline in profitability of
the Non Europe Zone.After taking into account both financial result
and the taxes, the Bonduelle Group's net income amounts to € 31.9
million, or 2.2% of revenue, up 8.3% compared to the same period
last financial year.
Financial situation
The group's net financial debt stood on December
31, 2020 at € 890.7 million compared to € 978.2 million for the
same period the previous year. Restated from IFRS 16, the group's
net financial debt stands at € 808.2 million, compared to € 892.5
million the previous financial year, a significant fall in debt
mainly due to the reduction in inventories (difficult crop season
and strong sales activity). The gearing(1) ratio, excluding the
impact of IFRS 16, was 1.20 compared to 1.24 as of December 31 of
the previous year. Finally, the average cost of debt, excluding
IFRS 16 impact, was 1.99%, a significant and continuous improvement
over the previous year (2.20%), due to the ongoing optimization of
the group's financing instruments.
Highlights
Bonduelle associates the agricultural
world to the group's value creationPursuant to the
resolution passed at the Shareholders' Meeting of December 17,
2020, Bonduelle announced on February 22, 2021 that it had
initiated a capital increase project dedicated to agricultural
partners. The purpose of this operation is to enable these
agricultural partners to share the Bonduelle SCA's value creation
and to strengthen lasting and close ties with the company by
associating them with its capital. The funds raised are not
earmarked for any specific purpose and the proceeds of the issue,
and any limitations on the issue, have no effect on the company's
liquidity and financing horizon.Once again, through this action,
Bonduelle is demonstrating its collective construction, alongside
its stakeholders, of its ambition for sustainable growth with a
positive impact.
The Bonduelle Group is committed to
improving the income of its vegetable production partners in
FranceThe Bonduelle Group and its partners, OPLVert and
OPLINORD, which regroups the vegetable producers of the
Hauts-de-France area and its partner Euralis Coop for the green
vegetable producers in the Southwest of France, have just signed
price revaluation agreements to finance the increase in
agricultural income and the agro-ecological transition.This
revaluation is based upon a strong commitment to "runoff" in favor
of agricultural producers, which involves all the actors of the
value chain, in a state of mind consistent with that of the General
States of Food (“Etats Généraux de l'Alimentation”) in order to
perpetuate one of the main sectors of French agricultural
excellence.
Bonduelle takes over the industrial
assets of the France Champignon Cooperative The Bonduelle
Group's offer to take over the industrial assets of the France
Champignon Cooperative, which was placed in receivership by
judgment on November 12, 2020, was validated by a decision of the
Saumur District Court. The final takeover is now subject to
approval by the French Competition Authority.With its
mushroom-producing partners and the support of its main distributor
customers, Bonduelle is actively participating in preserving the
industry and continuing to supply the French market with processed
mushrooms from a high-quality French industry.The expected
financial impact for the Bonduelle Group is the cancellation of the
residual value of the equity interests in the “Coopérative France
Champignon”, with an offsetting entry to the group shareholders'
equity, and a charge of € 0.6 million in non-recurring items.
The Bonduelle Group's Shareholders'
Meeting adopts the company's purposeThe 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 purpose: “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.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 purpose.
Outlooks
Given the resilience of the business recorded in
the first half of the financial year, but also the high level of
uncertainties related to the economic and sanitary environment, the
Bonduelle Group is targeting a revenue growth of 1% to 2% and a
current operating margin of 3.6% to 3.8% at constant exchange rates
and scope of consolidation.
(1) net financial debt / equity(2) 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 3rd Quarter FY
Revenue: May 3,
2021 (after stock exchange trading session)
- 2020-2021 Financial Year Revenue:
August 2, 2021 (after stock
exchange trading session)- 2020-2021 Annual Results:
September 27, 2021 (prior to stock exchange trading session)
Find the complete Half Year results
on www.bonduelle.com
About the
Bonduelle Group
We want to inspire the
transition toward a plant-based diet, to contribute to people’s
well-being and planet health. We are a French family business with
14,600 employees and we have been innovating with our farming
partners since 1853. Our products are cultivated on 126,000 acres
and marketed in 100 countries, with a revenue of € 2,855 million.”
Our 6 strong brands are Bonduelle, Cassegrain, Globus, Arctic
Gardens, Ready Pac Foods and Del Monte.
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
- Bonduelle - First Half Year 2020-2021 financial results
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