BONDUELLE
A French SCA (Partnership Limited by Shares)
with a capital of 57 102 699,50 EurosHead Office: La
Woestyne 59173 Renescure, FranceRegistered under
number: 447 250 044 (Dunkerque Commercial and Companies
Register)
First Half Year 2021-2022 Financial
Results
(July 1 - December 31, 2021)
Stability of the activity
and lower profitability in the first half
of the FY
- Overall stability of sales
in the first half and differentiated development of distribution
channels
- Good performance in the
various business operating segments in terms of revenue and
profitability, but hampered by the difficulties of the fresh
prepared food business in North America
- Revenue growth and current
operating margin stability expected for FY
2021-2022
- Impacts of Ukraine-Russia
conflict difficult to quantify at this stage
Comments from Guillaume
Debrosse, Chief Executive
Officer:
“At the end of the first half of the financial
year, the Bonduelle Group reported figures in line with its
expectations. The trend is towards a normalization of the activity
in all our business areas, with the retail market returning to
pre-Covid dynamics and an out-of-home catering whose recovery is
really encouraging, though still incomplete. In the fresh processed
segment, Europe is back to growth and in North America, the teams
remain actively focused on implementing the restructuring plan.
Finally, in Russia and peripheral countries, it is the brand
performance in both canned and frozen products that propels the
development of this area.In an uncertain environment, depending on
the sanitary context, price increase negotiations linked to the
context of unprecedented inflation and to the fresh prepared food
segment in North America, our objective of revenue growth and
profitability stability for FY 2021-2022, once again demonstrates
the group's resilience and the solidity of its business model. The
geopolitical context resulting from the conflict between Ukraine
and Russia will influence this scenario, although it is not
possible at this stage to estimate the impacts.
We are extremely saddened by the conflict that
is currently raging before our eyes in Ukraine. All our support
goes to our Ukrainian colleagues and their families, whose lives
have been overturned in just a few days and whose safety remains
our primary concern.Our thoughts also go to our Russian colleagues,
who are inevitably sorely affected by this awful situation.We can
only hope for an early return to peace.
Bonduelle has been operating for many years in
both Ukraine and Russia. At the moment, we are doing everything in
our power to ensure the continuity of our business by providing
essential food requirements and pursuing our sowing operations with
our farming partners to secure tomorrow harvests and avoid adding a
food crisis to the already critical situation we are experiencing.
Regarding our operations in Russia, we continue to adapt our modus
operandi in accordance with the measures implemented by the various
authorities involved.Above all, we are staying focused on our
mission to produce high-quality, affordable plant-based food in the
midst of our regions for all populations.”
*******
The 2021-2022 half-year financial statements
were approved by the General Partner, then reviewed by the
Supervisory Board of March 3, 2022 and by the Statutory
Auditors.
Significant
Results
(in € millions) |
1st
HY2021-2022 |
1st
HY2020-2021 |
Variation |
Revenue |
1,442.8 |
1,441.5 |
+0.1% |
Current operating
income |
46.5 |
56.3 |
-17.4% |
Current operating
margin |
3.2% |
3.9% |
-68 bps |
Consolidated net
income |
24.- |
31.9 |
-24.8% |
Gearing (1) exclud. IFRS 16 |
1.19 |
1.20 |
|
Revenue
The Bonduelle Group's revenue stands for the 1st
half of FY 2021-2022 at € 1,442.8 million against € 1,441.5
million last financial year over the same period, virtually
unchanged on reported figures (+0.1%) and on a like for like
basis(2) (-0.4%). Currency effects, which were negative in the
first quarter, made a positive contribution to growth in the second
quarter, resulting in a total effect of +0.5% for the first half of
the financial year, mainly due to the strengthening of the Canadian
dollar during the period.No change in the group's scope of
consolidation occurred over the period.
Activity by
Geographic Region
Total Consolidated Revenue(in €
millions) |
1st HY
2021-2022 |
1st
HY2020-2021 |
Variation Reported
figures |
Variation Like for like
basis(2) |
Europe Zone |
663.8 |
648.- |
+2.4% |
+2.5% |
Non-Europe Zone |
779.- |
793.5 |
-1.8% |
-2.8% |
Total |
1,442.8 |
1,441.5 |
+0.1% |
-0.4% |
Activity by Operating
Segments
Total Consolidated Revenue(in €
millions) |
1st HY
2021-2022 |
1st
HY2020-2021 |
Variation Reported
figures |
Variation Like for like
basis(2) |
Canned |
593.4 |
589.- |
+0.8% |
-0.1% |
Frozen |
362.9 |
332.- |
+9.3% |
+8.1% |
Fresh processed |
486.4 |
520.5 |
-6.5% |
-6.2% |
Total |
1,442.8 |
1,441.5 |
+0.1% |
-0.4% |
Europe Zone
The revenue for the Europe Zone, representing 46.-% of the business
activity, posted over the first half of this financial year an
overall growth of +2.4% on reported figures and +2.5% on a like for
like basis(2). The long-life operating segment (canned and frozen)
continued to normalize in the first half of the financial year,
with, on the one hand, overall stability in canned sales despite a
high basis of comparison linked to the second wave of Covid 19 and
the restrictions imposed last year, and, on the other hand, a
significant pick up in frozen sales driven by the out-of-home
catering business, which was penalized last year by the lock down
measures.The fresh processed business activities recorded
accelerated growth in the 3 main countries of operation (France,
Italy, and Germany) fuelled by more dynamic retail markets and the
recovery of the out-of-home catering business.
Non-Europe
Zone The revenue of the non-Europe Zone,
representing 54.- % of the business activity over the period, was
down -1.8% on reported figures and -2.8% on like for like basis(2).
In North America, the canned and frozen segments recorded the same
momentum as those observed in Europe, reinforced by more
substantial price increases. Over the first half of the financial
year, the fresh processed food segment continued to decline, as a
result of the ongoing deliberate policy of price increases and
contract selectivity, which led to lower volumes, as part of the
strategy to improve profitability.In the Eurasia region, the growth
in sales in Russia and peripheral countries was fuelled by both the
growth of the branded canned food businesses (Bonduelle and Globus)
and the development of Bonduelle branded frozen food sales
following the recent launches.
Operating income
The current operating profitability of the
Bonduelle Group, for the first half of financial year 2021-2022
stands at € 46.5 million, a 17.4% decline on reported figures and
18.8% on a like for like basis(2). The current operating margin was
at 3.2%, down 68 bps when compared with the first half of last
FY.Profitability in the Europe Zone continues to grow to reach €
37.7 million on reported figures (€ 35.1 million last financial
year), hence a current operating margin of 5.7% both on reported
figures and like for like basis(2) (5.4 % last financial year).
This good performance is largely attributable to the general
recovery of the out-of-home catering segment in Europe, in favor of
frozen technology, the good performance of the Cassegrain brand in
canned food in France coupled with the success of the innovations
launched in this zone.The current operating profitability in the
non-Europe zone stands at € 8.8 million on reported figures, a
current operating margin at 1.1%, down 160 bps over the same period
last financial year on reported figures (1.-% and 170 bps
respectively on a like for like basis(2)). Despite the initiated
recovery, expected to materialize in the second half of the year,
the fresh prepared business segment in North America is penalizing
the profitability of the non-Europe Zone, masking the strong sales
momentum and increased profitability in the other long-life
business activities in North America, Russia and peripheral
countries.After non-recurring items amounting to € 3 million,
mainly related to restructuring, insurance deductible following a
claim and M&A advisory fees, the operating profitability stands
at € 43.5 million against € 54 million over the same period last
financial year.
Net result
The net financial result stands at - € 10.4
million against - € 9.9 million last financial year. The financial
expenses improved significantly under the combined effect of lower
interest rates and competitive financing instruments, offset by a
limited negative exchange rate result. The decrease in corporate
income tax expense (€ 8.5 million against € 12.1 million last
financial year) is linked to the change in operating result and the
lower tax rate observed in France. After taking into account both
financial result and taxes, the group’s net income amounts to € 24
million, or 1.7% of revenue, down 55 bps compared to the same
period last financial year.
Financial situation
The Bonduelle Group's net financial debt stood
on December 31, 2021, at € 909.9 million against € 808.2
million over the same period last financial year, excluding the
impact of the application of IFRS 16, i.e., a debt-to-equity ratio
(gearing(1)) of 118.6% (119.5% last financial year). The increase
in debt is explained by the increase in working capital
requirements, itself linked to the partial reconstitution of
stocks, the increase in their value due to inflation and the
decline in the fresh business segment, which generated excess
working capital. The average cost of debt, excluding IFRS 16,
stands at 1.59%, a significant improvement compared to the first
half of the previous financial year (1.99%).Restated from IFRS 16,
the group’s net financial debt stands at € 1,003.2 million and the
gearing(1) ratio at 131.3%. It should be noted that the seasonal
nature of the business (summer agricultural crops) results in a
high level of debt on December 31, which is not representative of
the average level of debt or the one observed at the end of the
financial year.
Highlights
Conflict between
Ukraine and RussiaThe Bonduelle Group has been present
commercially in Russia and Ukraine since the 90s and industrially
in Russia since 2004. The revenue in Russia and in peripheral
countries represents approximately € 150 million, i.e. 5% of the
group revenue, of which less than € 10 million from Ukraine. The
group has 3 vegetable processing plants in Russia, including one in
Belgorod, near the Ukrainian border and 2 in the region of
Krasnodar, near the Azov sea, supplying 65% of products marketed in
Russia. Bonduelle has 10 employees in Ukraine and circa 900
employees in Russia. In Ukraine, all employees and their families
are currently safe, all commercial activity, given the
circumstances, has been interrupted. In Russia, the 3 vegetable
processing plants are in operation.The group pays attention to the
evolution of the situation, to the measures taken both by the
international community and in Russia, which impacts - in
particular relating to the supply of raw materials and finished
products, financial transfers and currency management - are
difficult to quantify at this stage.
Long-Life business activity changes in
North AmericaOn September 27, 2021, the Bonduelle Group
announced that it had initiated a discussion on the evolution of
the shareholding structure of its canned and frozen food operating
segments in North America, namely the Bonduelle Americas Long Life
(BALL) business unit.Following the various express interests
received in relation to these activities, the group is studying the
diverse options likely to allow it to focus its resources on its
strategic priorities, in particular the development of its branded
activities, while allowing the BALL business unit to pursue its
growth strategy.
Bonduelle releases its
first integrated report In line with its strategy of
sustainable growth with positive impact, the Bonduelle Group has
published its first integrated report. This report makes it
possible to share with stakeholders the group's integrated vision
of its business model and its approach to short, medium and long
term value creation. The integrated report is available on the
Bonduelle Group website www.bonduelle.com.
Outlooks
Taking into account, on the one hand, the very
different dynamics of the markets addressed in a context of a
changing sanitary crisis, and on the other hand, the strong
inflation of the various cost components offset in varying
proportions depending on the region by negotiated price increases
and finally, the recovery of the fresh prepared food business
segment in North America, which is only expected to materialize
from the second half of the financial year, the group confirms its
objective of 3,-% business growth and aims a stable current
operating margin compared to the previous financial year, i.e. 3.6%
of revenue, at constant exchange rates and scope of
consolidation.These outlooks are likely to be impacted by the
consequences of the conflict between Ukraine and Russia, which are
difficult to quantify at this stage.
(1) net 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:
- 2021-2022 3rd Quarter FY
Revenue: May 2, 2022
(after stock exchange trading session)- 2021-2022 Financial Year
Revenue: August 1,
2022 (after stock exchange trading session)- 2021-2022 Annual
Results: October 3,
2022 (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
14,700 employees and we have been innovating with our farming
partners since 1853. Our products are cultivated on 124,000 acres
and marketed in 100 countries, with a revenue of € 2,779
million.Our 6 strong brands are Bonduelle, Cassegrain, Globus,
Arctic Gardens, Ready Pac Foods, 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
This document is a free translation into English
and has no other value than an informative one. Should there be any
difference between the French and the English version, only the
French-language version shall be deemed authentic and considered as
expressing the exact information published by Bonduelle.
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