BONDUELLE - 2013-2014 Annual results

Another Financial Year of growth - Seite 3

This performance is the result of:

• A resilient profitability in Europe showing a current operating margin of 3.5% against 3.8% last FY;
• A relatively stable current operating margin outside Europe (33.3% of the turnover) at 9.1%, nearly 60% of the group's current operating profitability.

This result has been achieved by an excellent control of all the commercial, marketing and administrative resources coupled by the excellent work of the industrial teams to limit the adverse impacts of the 2013 summer unfavourable crop observed in many areas. The non-Europe zone dynamism in terms of business improvement together with the profitability gap observed against the Europe zone incite to carry on the expansion strategy via organic and external growth in this area.

Net Result

Net result decline due to non-recurring items

The net burden of non-recurring item stands at € 36.1 M and includes the fine imposed by the European Commission for anti-competitive practices in the market for the sale of canned mushrooms under retailer brand in Europe for an amount of € 32.4 M, procedural costs included. The group is pursuing its action for misrepresentation against the seller of France Champignon.
After deduction of these non-recurring items, the operating profitability stands at € 66.6 M against € 103.- M last FY.
The net financial expenses stand at € 27.4 M, steady when compared to last FY, the decrease in borrowing costs (- € 3.4 M) being offset by an equilibrium exchange rate against a gain last FY ( - € 0.5 M against + € 2.5 M).
When integrating the results of the companies consolidated by equity method, an improvement ( - € 1.4 M against - € 3 M last FY), the income tax expense of € 22.6 M - the European commission's fine being not tax deductible - the net result and the Bonduelle Group part net result stand at € 15.2 M.
Despite the net result decrease due to a non-recurring item, and given the 2014 - 2015 outlook of current operating profitability growth, the Executive Board will propose, at the General Assembly on the 4^th of December 2014, a dividend of 0.375 Euro per share, stable compared with last FY.

Financial situation

Strengthening of the group's financial structure

On the 30^th of June 2014, the Bonduelle Group showed a net debt of € 524.6 M versus € 591.9 M on the 30^th of June 2013, a decrease of € 67.3 M. The focus on various components of the capital employed enabled to generate free cash flow prior to acquisitions amounting to € 73.9 M against € 18.4 M the previous year, hence a gearing ratio at 104.1% (89.9% after restatement of the treasury stock**) and a leverage ratio (Net Debt on Recurring EBITDA ratio) at 2.95 (2.74 after restatement of the treasury stock**).