BONDUELLE - 2013-2014 Annual results

Another Financial Year of growth - Seite 4

Hence, the group demonstrates its ability to generate significant, recurring and secured cash-flows, and a fast return to robust financial ratios after the 3 acquisitions that took place in 2012.
The signing of an amendment to the financing contract "Revolving Credit Facility" in July 2014 also enabled to improve the group's financing conditions and to extend the average maturity of its debt to 4.9 years.
The group's financial structure, therefore, allows again to envisage new growth projects.

Highlight

Development project in North America

Via its business Unit Bonduelle Americas, the Bonduelle Group signed on the 26^th of September 2014 an assets purchase agreement with Sobeys, a Canadian distribution group, regarding the acquisition of a frozen factory. This production tool, in excellent condition and with a capacity of 15,000 tons, is located in Lethbridge western Canada (Alberta) on the border with the United States. It will enable to strengthen the group's presence in Canada and will be the group's first production tool located in the west of North America, permitting a commercial expansion in this area.
This transaction of a limited amount comes with the signing of a long term, exclusive supply contract between Sobeys and Bonduelle for several product lines on the Canadian territory. This partnership, therefore, ensures a long term Canadian sourcing of vegetables to producers from Alberta, Quebec and Ontario.
Taking into account the current due diligence procedures, the closing of the transaction should take place prior to the 1^st of November 2014.

Outlook

2014 - 2015 FY should again be marked by a sluggish consumption climate and a lot of uncertainties either on an economic and geopolitic level. If, in July, the group suffered material injury in the Tecumseh plant (Canada), the fire was contained within the frozen storage area and fortunately did not affect the production process.
Based on the inherent strengths of its business model coupled with the expansion investments made over the last few years and a satisfactory crop observed in many areas, the Bonduelle Group anticipates another FY of growth for its current operating profitability.
In line with the VegeGo! 2025 development project: « to be the world reference in "well-living" through vegetable products » and its targets, the group should continue to enjoy a current operating profitability growth within a € 106 M to € 109 M range, a growth of 3 to 6% at constant scope of consolidation and exchange rates.