Home > Investor Relations > Press Releases > Press Release
PRESS RELEASE
Annual results 2007 Ter Beke Group
Ter Beke realises expected results
Waarschoot, 29 February 2008
1. Headlines 2007
- Key figures of the Group:
- Turnover increases by 12.2% to 366.7 million EUR;
- EBITDA increases by 22.1% to 29.3 million EUR;
- Recurrent Operating Result (REBIT) increases by 41.7% to 12.2 million EUR;
- Non-current costs amount to 2 million EUR;
- Net financing costs increase by 1.5 million EUR to 3.9 million EUR.
- Earnings after taxes increase slightly to 6.1 million EUR compared with 5.9 million EUR in 2006;
- Net cash flow increases by 26.5% to 25.1 million EUR;
- Processed Meat Division (TerBeke-Pluma):
- Strong growth in turnover, in part through the inclusion of the merger with Pluma (2006) in the consolidation for 12 months compared with 9 months in 2006;
- Continuing growth in sliced and pre-packed meat products;
- Takeover of Berkhout Verssnijlijn in the Netherlands and SDF Foods in the United Kingdom.
- Ready Meals Division (FreshMeals):
- Further growth in turnover;
- Investments in capacity in the site at Marche-en-Famenne;
- Commercial and industrial re-organisation in France.
- Proposal to maintain the gross dividend at 2.10 EUR per share
| In 000 EURO | 2007 | 2006 | % | |
| Revenue (netto turnover) | 366,669 | 326,718 | 12.2 | |
| EBITDA** | 29,274 | 23,981 | 22.1 | |
| Recurrent Operating result (REBIT) | 12,192 | 8,606 | 41.7 | |
| Non-current results | -1,950 | 1,500 | -230.0 | |
| Operating result (EBIT) | 10,242 | 10,106 | 1.3 | |
| Net financing costs | -3,896 | -2,369 | 64.5 | |
| Operating result after net financing costs (EBT) | 6,346 | 7,737 | -18.0 | |
| Taxes | -277 | -1,764 | -84.3 | |
| Earnings After Taxes (EAT) | 6,069 | 5,973 | 1.6 | |
| Net cash flow* | 25,101 | 19,848 | 26.5 | |
| Equity | 74,421 | 71,715 | 3.8 | |
| Net financial debts | 71,681 | 56,458 | 27.0 | |
| Equity/Total assets (in %) | 30.0% | 34.5% | -12.8 | |
| In euro per share | ||||
| Number of shares | 1,730,171 | 1,722,971 | 0.4 | |
| Average number of shares*** | 1,727,118 | 1,588,088 | 8.8 | |
| Net cash flow | 14.53 | 12.50 | 16.3 | |
| Earnings After Taxes | 3.51 | 3.76 | -6.6 | |
| EBITDA | 16.95 | 15.10 | 12.2 |
* Net cash flow: earnings after taxes +
depreciation + impairment + changes in provisions
** EBITDA: Operating result + depreciation + impairment + changes in provisions
*** Under IFRS figures per share must be reported over the average number of
shares for the period. Because 342,254 new shares were created on 18 May 2006
and because of the conversion of a number of warrants, the average number of
shares in 2007 is considerably higher than the average number of shares in 2006,
which explains the lower profit per share.
3. Report of the Statutory Auditor on 2007
The statutory auditor, DELOITTE Auditors BV o.v.v.e. CVBA, represented by Mr. Dirk Van Vlaenderen, has confirmed that his auditing work, which is essentially completed, has brought no significant correction to light which would have to be reflected in the bookkeeping information included in this press release.
4. Dividend
In accordance with the evolution of the earnings after taxes,
the Board of Directors will propose to the General Meeting of Shareholders, as
it did with regard to 2006, that a gross dividend be distributed over 2007 of
2.10 EUR per share (net: 1,575 EUR).
In doing so, the Board of Directors wishes to maintain a proper balance between
the company's needs and the recognition of the shareholders for their support,
as well as to express its confidence in the company's future development.
5. Notes to the accounts
5.1. Change in the consolidation circle
In April 2006 Ter Beke merged with the processed
meats group Pluma. In the consolidated results for 2006 Pluma was included as
from 1 April 2006 (9 months). The consolidated figures for 2007 include a whole
year of the Pluma group’s activities.
In January 2007 the group took over the English agent SDF Foods in order to
strengthen its position in the English market. The results of SDF Foods were
included in the 2007 consolidation for a full 12 months.
In September 2007 the group successfully completed the takeover of the Dutch
company Berkhout Verssnijlijn. This takeover fits with the strategic choice of
the group to focus on pre-packaging and slicing. Berkhout was included in the
consolidation as from 1 September 2007 (4 months).
5.2. Turnover
The above-mentioned changes in the consolidation
circle are the primary reason for the growth in turnover of the whole group by
12.2% from 326.7 to 366.7 million EUR.
In general, Ter Beke focused in 2007 on increasing the profitability of its
customer and product-portfolio.
In line with the tendency of recent years we record a further increase in the
sales of pre-packed meat products compared with a decrease in the sales of over
the counter products.
The turnover increase in the ready meals sector continues the trend seen in
recent years. Despite the termination by FreshMeals of a number of important
volume contracts in France, an increase of approximately 3% was realised
compared with 2006.
5.3. EBITDA and Recurrent Operating Result (REBIT)
The EBITDA increases by 5.3 million EUR (22.1%)
compared with 2006. This is the result of the increase in turnover, but also of
a better product mix. The pressure on margins resulting from increasing raw
material prices negatively influences the result. These increases in raw
material prices will continue to put pressure on the margins in 2008.
FreshMeals was able to further strengthen its position as market leader in
Belgium in the course of 2007, in part through the continued brand investments
in Come a casa. As previously announced, in 2006 a number of contracts were
concluded in the French market at margins that were too low. These contracts
were either renegotiated or terminated by FreshMeals in the course of 2007.
At the end of May 2007 the group announced that it had ended talks on a possible
takeover of Normandie Plats Cuisinés. In the first half of 2007 a number of
one-off costs were also incurred in the context of splitting the 2 core
activities of the group in 2 separate legal entities as from 1 January 2007.
These costs entirely imputed on the EBITDA result.
The recurrent operating result (REBIT) increased by 3.6 million EUR (+41.7%)
compared with 2006, after the net increase in depreciations and provisions by
approximately 1.7 million EUR. The increase in depreciations is mainly the
consequence of the above-mentioned changes in the consolidation circle and of
the investment programme of 2006 and 2007.
5.4. Non current results
Compared with 2006, one-time non-current results of 3.5 million
EUR influence the operating result (EBIT).
In 2006 this result was positively influenced by reversing a provision of 1.5
Million EUR.
In 2007 Ter Beke established a non-current provision of 1.1 Million EUR in
relation to the activities in France. Taking account of the effects of the
re-negotiated contracts and the contracts terminated by FreshMeals in the French
market, the group has decided to adapt the French commercial and administrative
organisation and the production structures of the factory in Alby-sur-Chéran to
the new situation. This re-organisation should permit Ter Beke to further
restore the profitability of the French activities.
The group has also decided to book non-current accelerated depreciations
(impairment) of 0.9 Million EUR on tangible fixed assets of which the expected
lifespan could have to be shortened. This shortening of the lifespan can be the
consequence of various studies that were initiated in order to further optimise
and specialise the production sites within the group in order to improve
profitability.
All these non-current elements cause the operating result (EBIT) to only
increase by 0.1 million EUR (+1.3%) compared with 2006.
5.5. Net financing costs
The net financing costs increase by 1.5 million EUR compared
with 2006.
This increase is mainly the result of the changes in the consolidation circle.
The financing costs also increase as a result of the continued implementation of
the investment programme 2006-2007.
The net financing costs also include negative exchange rate differences of 0.4
Million EUR, which are the result of the strong rise in the Euro compared to the
British Pound in the last 2 months of 2007.
The equity ratio amounts to 30.0% on 31 December 2007 compared with 34.5% on 31
December 2006.
5.6. Investments
In 2007 Ter Beke invested 20.9 Million EUR in
tangible fixed assets.
The most important investment projects were a number of new slicing and
packaging lines for meat products, the continuation of the legally required
switch to Freon-free cooling systems and mainly the accelerated implementation
of the capacity investments in the site at Marche-en-Famenne.
5.7. Taxes
The decrease in the tax percentage from 22.8% in
2006 to 4.4% in 2007 is mainly the result of the realisation of certain one-off
tax advantages. Thus in 2007 1.2 Million EUR of previously unrecognised tax
claims were included in the results. As was reported in the 2006 Annual report,
Ter Beke had not recognised significant deferred claims on fiscally transferable
losses because it was not sufficiently certain of realizing them in the short
tem. In 2007 that certainty was obtained.
Also, the tax rate in the Netherlands decreasing from 29.6% in 2006 to 25.5 % in
2007 explains the lower percentage in 2007.
6. Main events after the end of the financial year
Ter Beke entered into exclusive talks on the possible takeover of Fresh Concept
SA, located in Marcinelle.
Fresh Concept is a service-slicer (comparable to Langeveld/Sleegers and
Berkhout) with a turnover of approx. 11.5 million EUR and approx. 45 employees.
7. Prospects
In 2008 Ter Beke will invest further in the efficiency and
expansion of its production facilities and the strengthening of the market
position of both its divisions.
Save for unexpected market or exchange rate circumstances, Ter Beke expects a
further increase of the current results in 2008.
For more information, please contact:
| Media Luc De Bruyckere Chairman Board of Directors Telephone: +32 (0)9 370 13 17 E-mail: luc.debruyckere@terbeke.be |
Investor
Relations René Stevens CFO Telephone: +32 (0)9 370 13 45 E-mail: rene.stevens@terbeke.be |
| Marc Hofman Managing Director Telephone +32 (0)9 370 13 16 E-mail : m.hofman@terbeke.be |
FINANCIAL CALENDAR
| Business update first quarter 2008 | 9 May 2008 after market close |
| General Meeting 2008 | 29 May 2008 at 11:00 hours |
| Half year results 2008 | 29 August 2008 after market close |
| Business Update third quarter 2008 | 12 November 2008 after market close |
TER BEKE IN BRIEF
Ter Beke (Euronext Brussels: TERB) is an innovative Belgian fresh food group selling its range of products in 10 European countries. The group has 2 core businesses: processed meats and fresh ready meals, possesses 10 industrial sites in Belgium, the Netherlands and France and counts about 1,800 people. In 2008, Ter Beke recorded a turnover of 393 million EUR.
Processed Meats Division: Ter Beke-Pluma
- Producer of processed meats for the Benelux, the United Kingdom and Germany;
- 4 production sites in Belgium (Wommelgem, Waarschoot, Marche-en-Famenne and Herstal) and 5 centres for slicing and packaging of processed meats, including 2 in Belgium (Wommelgem and Veurne) and 3 in the Netherlands (Milsbeek, Ridderkerk and Hendrik Ido Ambacht);
- Innovative in the segment of pre-packaged processed meats;
- Distribution brands and own brand names L´Ardennaise and Daniël Coopman;
- Approximately 1050 employees.
Ready Meals Division: FreshMeals
- Producer of fresh ready meals for the European market;
- Europe market leader in fresh lasagne;
- 3 production sites, including 2 in Belgium (Wanze and Marche-en-Famenne) and 1 in France (Alby-sur-Chéran);
- Brand names Come a Casa, Pronto and Vamos along with distribution brands;
- Approximately 750 employees