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PRESS RELEASE
Trading update first quarter 2008
Waarschoot, 9 May 2008
Activities and results evolution
The group's turnover in the first quarter of 2008 is 11,5% higher than the turnover in the same period of 2007. This is due to the inclusion of the results of the Dutch company Berkhout Verssnijlijn in the consolidated results. Berkhout was taken over in September 2007.
On a like for like basis, the group's turnover remains stable in the first quarter, despite the termination of a number of important volume contracts.
The prices of raw materials for the ready meals division, which started to increase in 2007, continue to rise in the first quarter of 2008. The group could partially compensate for this price increase through its sales prices. For the remainder of 2008, the group currently does not expect further raw materials price increases for this division.
The market prices for meat, particularly relevant for the processed meats division, were stable to slightly increasing in the first quarter of 2008. It is generally expected that prices of pork meat can rise further in the second half of 2008.
On an annual basis, the group realises a turnover of approx. 30 million EUR in the UK, primarily with its range of paté-products. A substantial part of this turnover is invoiced in Pound Sterling. Since the fourth quarter of 2007, the Pound Sterling devaluated with approx. 16% compared to the Euro. Part of this devaluation could be compensated through price increases in the market.
Notwithstanding the above elements and save for further unexpected market and currency circumstances, Ter Beke expects a further improvement of the results in 2008 thanks to the growth of its slicing activities and thanks to considerable cost control measures.
Main events
- The group was informed by its reference shareholder Stichting Administratiekantoor Coovan that it had increased, through purchases on 29 April and 5 May 2008, its stake in the Ter Beke group from 55,12% to 60,89%.
- Taking into account the effects of the renegotiation and termination by FreshMeals of a number of contracts in the French market in 2007, the group decided to adapt its French organisation to this new situation. This reorganisation, which is currently being fully implemented, should allow Ter Beke to further restore the profitability of its French operations.
- Ter Beke decided in the beginning of April 2008 to transfer the production of poultry products, and the employment in relation thereto, from the Ruiselede site to the Waarschoot site. This decision was taken because the existing facilities and capacity in Ruiselede are insufficient to address the expected growth in poultry products. The group aims to finalise this transfer in the fall of 2008. An investment of approx. 3 million EUR is planned in the Waarschoot plant.
- On 29 February 2008, Ter Beke announced that it had started exclusive talks on the possible take over of Fresh Concept, located in Marcinelle. The parties decided and announced on 29 April 2008 to end their negotiations because they could not agree on the terms of a possible transaction.
- With regard to the pending captive-litigation between Ter Beke and the Belgian tax authorities, the Court of Appeals rendered a judgement on 6 May 2008 in which it rejects the appeal lodged by the tax authorities and confirms the annulment of the additional taxation imposed on Ter Beke with regard to the captive reinsurance structure. The group issued a press release on this matter on 7 May 2008.
For more information, please contact:
| Marc Hofman Managing Director Tel.: +32 (0)3 350 06 20 E-mail : m.hofman@terbeke.be |
René Stevens Group CFO Telephone: +32 (0)3 370 13 45 E-mail: rene.stevens@terbeke.com |
FINANCIAL CALENDAR
| Annual report | 13 May 2008 |
| General Meeting 2008 | 29 May 2008 at 11 a.m. |
| Dividend payment | 16 June 2008 |
| 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