Cibi e Bevande
BONDUELLE - First Half Year 2018-2019 Revenue: revenue down for the group
BONDUELLE
The Bonduelle Group's revenue stands for the 1 half of financial year 2018-2019 at 1,406.6 million of euros, a decrease of -1.-% both on reported figures and a like for like basis*. The changes in the scope of consolidation resulting from the acquisition, early July 2018, of the Del Monte business activities, made a positive contribution of +1.2% to the variation of the revenue over the period and the negative impact of the exchange rates fluctuations, mainly the weakening of the Russian rouble and Canadian dollar, -1.1%.
Revenue for Q2 posted a decrease of -0.7% based on reported figures and a -1.-% on a like for like basis*.
The growth of revenue for the Europe Zone, representing 45.7% of the business activity over the period, posted a global increase of +1.4% on reported figures and +1.6% on a like for like basis* for the first half of this FY, the 3 operating segments of the group having positively contributed to the evolution of this zone.
Quarter 2 demonstrated faster growth with a +2.2% percent improvement on reported figures and +2.4% on a like for like basis*.
Following a difficult start for this FY, the canned and frozen operating segments, recorded a strong solid growth over Q2. By contrast, following a first quarter boosted by favourable weather conditions, the fresh processed and fresh ready-to-eat operating segment recorded, over Q2, a limited growth, that was partially impacted by the demonstrations that took place in France.
The revenue of the Non-Europe Zone, representing 54.3% of the revenue of the group, was down -2.9% on reported figures and -3.1% on a like for like basis*, with the ones for Q2 at -3.-% and -3.6% respectively.
In North America, the temporary time lags in the completion of some sales contracts with canned and frozen food manufacturers observed in Q1, have, as expected, been postponed to Q2.
The pursuit of discontinuation of non-profitable product ranges within the Bonduelle Fresh Americas (cutting of fruits, packaged salads), in addition to a health warning regarding the consumption of salads in US and Canada, without Bonduelle or its suppliers involvement, but affecting the entire industry stakeholders, and a sourcing diversification strategy of one of our customers in the US have hindered the fresh activities over the zone, despite the recorded of new customers and the launch of a Bonduelle branded range of salad bowls in Canada at the end of the half-year.
Over Q2, Russia confirmed the strong sales momentum in canned and frozen for the Bonduelle brand observed first half year, buoyed notably by some innovations in corn, olives and mixed vegetables in jars, now produced in Russia.
On January 22, 2019, the Bonduelle Group announced they have entered into discussions with the American company Seneca Foods Corporation (NASDAQ: SENEA, SENEB) to acquire its plant in Lebanon (Pennsylvania, USA).
This plant, which is used for the packaging of frozen products, was built in 2008 and acquired by Seneca in 2010, has a capacity of 45,000 tons on 7 packaging lines in perfect working order, with a large storage capacity, and has 140 permanent collaborators.
This acquisition, including industrial assets, frozen product stocks and the employees at the Lebanon industrial site, is expected to close in the coming weeks.
The Combined Shareholders' Meeting held on December 6, 2018, by approving 3 and 4 resolutions, decided the payment of a dividend of €0.50 per share for the fiscal year ended June 30, 2018 and offered to each shareholder for the total amount of the dividend, net of any compulsory levies, an option to be paid in cash and/or in shares.
Upon expiry of the option period which was between 14/12/2018 and the 28/12/2018 inclusive, it was established that the total number of new shares is 257,222, representing 0.79% of the share capital.
Following this operation, and based on December 31, 2018 voting rights press release, the capital is formed of 32,538,340 shares with a nominal value of €1.75, representing 51,339,625 theoretical voting rights.
The Bonduelle Group is anticipating a limited growth of its revenue at constant exchange rates over FY 2018-2019, mainly fuelled, in the absence of any expected internal growth, by the acquisition of the Del Monte business activity and for a limited contribution, subject to completion of the transaction, of the frozen activity in Lebanon.
The detailed HY performance analysis coupled with the initial results of the trade negotiations conducted in 2019 will help to further refine the business and profitability objectives for FY 2018-2019.
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