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PRESS RELEASE
Ter Beke wipes out first half-year losses
to close 2001 in profit
Net dividend of 1 euro per share
1. Headlines 2001
Key figures:
gross turnover increases to EUR 173.3 million
net current result: EUR 1.5 million
profit after tax: EUR 1.3 million
net cash flow : EUR 11.3 million
"a year of two halves":
1st half: high prices for raw
materials as result of foot and mouth disease
2nd half: recovery in sales margins and good sales
consumption of meat products under pressure
prepared pasta meals continue to grow in Europe
substantial investments in prepared pasta meals
partial compensation awarded following dioxin crisis
2. Audited consolidated key figures 2001
000 Euro
2001
2000
D %
Gross turnover
Net turnover
Operating result
Financial result
Result from ordinary activities
Exceptional result
Result before income taxes
Net result after income taxes
Current net result*
Cash flow after income taxes
173.318
166.621
4.904
(4.221)
683
991
1.674
1.309
1.516
11.304
172.200
164.921
6.972
(4.566)
2.406
35
2.441
2.787
3.950
12.205
0,7 %
1,0 %
(29,6 %)
7,6 %
(71,6 %)
--
(31,4 %)
(53,0 %)
(61,6 %)
(7,4 %)
* Current net result = net result after income taxes, before goodwill amortisation and before exceptional result
Key figures per share
| Euro |
2001 |
2000 |
D % |
|
Number of shares |
911.094 |
883.486 |
3,1
% |
The statutory auditor has confirmed that he has completed his auditing work and that no significant corrections need to be made to the figures in the press release.
3. Dividend
The Board of Directors will propose to the General Assembly of Shareholders to distribute a net dividend of € 1 per share.
With this dividend, the Board of Directors wishes to acknowledge the support given by the shareholders to the company, and to express its confidence in the company’s future growth.
4. Notes
4.1. Positive results in the second year-half make up for losses incurred in the first
There were two clear sides to the year 2001.
During the first half of the year, Ter Beke faced a substantial increase in
the price of pork. The total effect of these increases in raw material
prices amounted to some € 3 million, which resulted in a net current loss of
€ 2 million as of 30 June 2001.
In the second half of the year, the prices of pork and the margins returned
to normal levels. We also achieved positive results in cost-saving
initiatives in a number of operational areas. Together with good sales
achieved after the summer, this led to a net current profit of € 3.5 million
over the second half of the year.
As a result, 2001 closed with a current net profit of € 1.5 million.
4.2.
Turnover rises in the Benelux and SpainTotal turnover rose slightly by around 1 per cent to reach €
173.3 million. This increase is the result of two basic trends. Firstly,
there was a strong increase in turnover on lasagne and pizza, but secondly
sales of meat products were placed under pressure as the result of a
shrinking market.
Ter Beke’s sales of processed meats are realised mainly in the Benelux.
Prepared pasta meals are sold in numerous European countries and maintain
significant room for further growth.
Turnover rose in Belgium as the result of the higher sales prices for
processed meats on the one hand, and growth in prepared pasta meals on the other
hand. The Netherlands achieved strong growth in processed meats (pâté) but
particularly in prepared meals.
Over the past year we have achieved strong growth in most European countries
with selected retailers, while at the same time restructuring a number of
unprofitable sales. Spain deserves particular mention: here turnover was
once again doubled. Ter Beke is now the clear market leader in Spain for
fresh lasagne - as it is in the Benelux, Switzerland and Ireland.
4.3. Exceptional profits
On previous occasions we have announced that Ter Beke received a payment which compensates in part for the total damages (€ 10 million in 1999 alone) suffered as a result of the dioxin crisis. During 2001 we received a total of € 1.9 million which pays for a part of the stocks which had to be destroyed on the domestic and foreign markets. A number of one-off exceptional costs were also incurred, including write-offs relating to the production site in Wanze, which brings the net exceptional profit to € 1 million.
5. Substantial investments in lasagne
Ter Beke is aiming at accelerated growth in prepared pasta meals in West Europe. For this reason, investments were started in September 2001 at a level of € 12.5 million. These resources were invested into doubling production capacity, and further automation in lasagne production in Wanze (Huy).
This investment is needed to meet current and future demand and will have a positive effect on local employment
6. Prospects for 2002
Overall, we are optimistic, and expect that our current profit for this year will be significantly higher than that of last year.The market situation in which Ter Beke operates has stabilised and margins have returned to normal. We expect further growth in prepared pasta meals in Europe, and a slight drop in processed meats, an area where the market remains under pressure. We do not plan to repeat the one-off savings we made in the second half of 2001 to wipe out the losses incurred during the first half of the year. At the same time we will make targeted marketing initiatives in a number of markets in order to strengthen our position still further.
Waarschoot, 8 maart 2002
|
Luc De Bruyckere Chairman/Managing Director +32 9 370 13 00 luc.debruyckere@terbeke.be |
Marc Hofman CFO +32 9 370 13 16 m.hofman@terbeke.be |
Ter Beke in a nutshell
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is a Belgian fresh food group with five production sites: three in Flanders and two in Wallonia
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achieved in 2001 a gross turnover of EUR 173.3 million, a net profit of EUR 1.3 million and a net cash flow of EUR 11.3 million
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is a producer of fresh prepared ready meals and processed meats for the European market
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is the European market leader in fresh lasagne
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markets its products under brand names such as L’Ardennaise, Come a Casa, Pronto, Vamos, Les Nutons, Daniël Coopman
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is customer-driven, with a fast rate of product development and improvement:
800 employees put their professional skills at the service of the customer and are given every opportunity for developing their talents