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PRESS RELEASE
Significant growth in turnover and results
1. Headlines for the 1st half of 2004
- Key figures :
- gross sales up by 12% to 106.5 million €
- result after income taxes up by 22.7% to 2.3 million € - growth in processed meats
- substantial growth of Come a Casa
- strong growth on international markets
- comprehensive investment programme in full implementation
2 . Consolidated key figures for the 1st half of the year
2004
2.1.
Income statement
| 000 € | 30/06/2004 | 30/06/2003 | D % |
| Gross sales | 106,458 | 95,075 | + 12.0 % |
| Net sales | 102,673 | 90,911 | + 12.9 % |
| Operating result | 5,360 | 4,507 | + 18.9 % |
| Financial result (excl.goodwill amortization) | - 1,060 | - 1,172 | + 9.6 % |
| Goodwill amortization | - 636 | - 576 | - 10.4 % |
| Result from ordinary activities | 3,664 | 2,759 | + 32.8 % |
| Extraordinary result | 9 | 6 | --- |
| Result before income taxes | 3,673 | 2,765 | + 32.8 % |
| Income taxes | - 1,328 | - 855 | - 55.3 % |
| Result after income taxes | 2,345 | 1,910 | + 22.7 % |
| Net current profit* | 2,995 | 2,503 | + 19.6 % |
| Net current cash flow* | 7,504 | 7,206 | + 4.1 % |
| EBITDA** | 9,985 | 9,486 | + 5.3 % |
2.2 Key figures per share (on 6-month basis)
| In € per share | 2004 | 2003 | D % |
| Number of shares | 911,594 | 911,094 | 0.1 % |
| EBITDA** | 10.59 | 10.41 | 5.2 % |
| Result from ordinary activities | 4.02 | 3.03 | 32.7 % |
| Net current profit* | 3.29 | 2.75 | 19.6 % |
| Result after income taxes | 2.57 | 2.10 | 22.4 % |
| Net current cash flow* | 8.23 | 7.91 | 4.0 % |
* Net current result and net current cash flow: net result and
net cash flow excluding extraordinary results and goodwill amortization
** EBITDA: result from ordinary activities + costs of debts - income from
current assets + amortizations of fixed assets and goodwill
3. Notes to the accounts
3.1. Sales increase
The gross sales increased by 12% to 106.5 million € compared
to the same period of 2003. With the same consolidation circle (without Di Pasto
in France, which was taken over on 1 July 2003) the growth would have been 7%.
This good result is due to both the growth of chilled ready meals in all
countries where Ter Beke is active and the modest growth in processed meats.
3.2. Come a Casa highly successful
In the autumn of 2002 Ter Beke launched the consumer brand
Come a Casa for chilled ready meals. The success of this investment is
illustrated by the substantial growth in Come a Casa sales and the measured
brand recognition. The quality of the media campaign received widespread
recognition and (among other things) was crowned with the renowned Effie award.
The brand investment continues undiminished in the second half of 2004,
including an updated TV campaign.
Shortly Come a Casa will be launching "Campione", ("Pasta for Kids") and "Zuppa
Fresca", fresh Mediterranean soups, among other new products.
3.3. Further growth in processed meats
Thanks to a dynamic approach of the different sales channels,
Ter Beke has succeeded, for the second year in a row, in recording growth in
processed meats, thus doing better than the market.
3.4. Out-of-home successfully started
After careful research, one and a half years ago Ter Beke
started developing in the Benelux the market segment of out-of-home consumption,
something that was new for the group. In essence this concerns the meals
segment. Ter Beke invested in a dedicated commercial team and in a targeted
market approach. After the encouraging results, which we reported on earlier, we
are satisfied with the current results, which convince us to pursue our strategy
in this area.
3.5. Ter Beke market leader in chilled ready pasta meals in France
Partially as a result of the French acquisition in 2003, but
also through the strengthening of our own organisation, Ter Beke France has
developed into a full-fledged unit which may rightfully claim the market
leadership for chilled pasta meals in this important market.
3.6. Comprehensive investment programme advancing according to plan
The new shipping platform in Wanze is nearing its physical
completion. Computer system investments, which are coupled with it, are
progressing entirely according to plan, which will enable us to be operational
around the turn of the year.
The new R&D Center for chilled ready meals in Marche-en-Famenne is almost ready
and will offer support to the production centres in Marche, Wanze and
Alby-sur-Chéran (France). In Marche-en-Famenne a new line is also being built
for chilled ready meals and the pâté department is being thoroughly renovated.
At our French site, a major expansion investment is underway which also includes
a significant upgrading of the production process.
In the processed meats plants in Waarschoot, Ruiselede and Veurne the announced
investment plan is in full implementation. This concerns primarily the
maturation and drying of salami in Waarschoot, the slicing and pre-packaging in
Veurne and a new filling line for poultry processed meats in Ruiselede.
3.7. Operating result
The operating result improved to 5,22% of net sales (4,95%
over the first half of 2003). This is primarily due to controlling the costs and
an improved product mix.
3.8. Financial results and cash flow
The financial charges fell by 9.6% as a result of the
repayments of the long-term accounts and the increased cash flow. The net
current cash flow grew by 300,000 €, which represents an improvement of 4.1%.
3.9. Income taxes
The average tax charge increased to 36% which corresponds with
the average of 2003. Among other things, this is the consequence of the increase
in the non-deductible goodwill amortization and disallowed expenditures.
There are no major developments to report with regard to the ongoing dispute
with the tax administration, which originated in 1996 and about which we
reported extensively in the notes to the consolidated annual accounts as at 31
December 2003.
4. Prospects
The first half of 2004 confirms the steadily improving trend in the results of
the past two years.
Despite the price and margin pressure resulting from the tough competition in
the European retail sector, we expect further growth in both turnover and
results.
We expect that the percentage growth of the result for 2004 will be in line with
that of the first half of the year.
5. Financial services
In compliance with the circular of the Banking and Finance Commission of July
2003, we report that the following financial institutions provide the financial
services concerning the Ter Beke share:
Fortis Bank, ING Bank, KBC and Petercam NV.
6. Report of the Statutory Auditor on the half-year
information on June 30, 2004
We have performed a limited review of the interim consolidated
balance sheets as of June 30, 2004 of TER BEKE, NV, as well as the interim
consolidated statement of income for the six months then ended. These interim
consolidated financial statements have been prepared under the responsibility of
the Management.
Our limited review was made in accordance with the applicable recommendation of
the Belgian Institute of Company Auditors, and consisted primarily of an
analytical review and a discussion thereof with management. The scope of this
review can not be compared with an audit in accordance with general accepted
auditing standards.
Our limited review did not reveal any elements or facts that would make us
conclude that the interim consolidated financial statements as of June 30, 2004
are not established in accordance with the accounting law and accounting
principles of the company.
Consistent with our declaration on the annual account as of December 31, 2003,
we would like to draw the attention to the note in the press release, regarding
the ongoing dispute with the tax authorities. Although the Board of Directors is
of the opinion that it has sufficient grounds to overturn the contested
assessments and notices, and hence no provision has been recorded, the outcome
of this dispute can not be determined with certainty.
The Statutory Auditor,
DELOITTE & PARTNERS, Bedrijfsrevisoren
Represented by
Dirk Van Vlaenderen
2 September 2004
For more information, please contact:
| Media Luc De Bruyckere Chairman Telephone: +32 9 370 13 00 E-mail: luc.debruyckere@terbeke.be |
Investor Relations Marc Hofman Vice President Telephone: +32 9 370 13 16 E-mail: m.hofman@terbeke.be |
Ter Beke in a nutshell
Ter Beke
- is a Belgian fresh food group with six production sites, five of which are in Belgium [three in Flanders (processed meat) and two in Wallonia (chilled pasta meals)] and one in France (chilled pasta meals)
- achieved a gross turnover in 2003 of 198,8 million €, a net profit of 4.2 million € and a net cash flow of 16.8 million €.
- is a producer of chilled lasagna and pasta meals and processed meats for the European market
- is European market leader for chilled lasagna
- markets its products under the brand names Come a Casa, L'Ardennaise, Pronto, DiPasto, Daniël Coopman, Vamos and Les Nutons
- is customer-driven and develops and updates products with sustained regularity
- has over 1,100 employees who put their professional skills at the service of the customer.