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PRESS RELEASE
CONSOLIDATED RESULTS FOR THE FIRST HALF OF 2009
Waarschoot, 28 August 2009
KEY FIGURES AND HEADLINES
- Ter Beke Group:
- Total turnover of EUR 191.4 million versus EUR 192.1 million in 2008;
- EBITDA increases by 8.7% from EUR 14.7 million to EUR 16.0 million;
- EBIT increases by 10,9% from EUR 6.0 million to EUR 6.7 million;
- Result after taxes increases to EUR 4.4 million compared to EUR 2.7 million in 2008;
- Net cash flow increases by 20.5% from EUR 11.4 million to EUR 13.7 million.
- Processed Meats Division:
- Volume increase in all important markets;
- Raw material price decreases passed on in sales prices;
- Increase in revenue mainly thanks to the growth of the service slicing activities in the Netherlands.
- Ready Meals Division:
- Further improvement of profitability;
- Turnover evolution slowed down by decrease of raw material prices and the termination of unprofitable volume contracts in France in 2008.
CONSOLIDATED KEY FIGURES FIRST HALF OF 2009
Income statement in 000 EUR
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Financial position in 000 EUR
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Key figures in EUR per share
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(1) EBITDA: result of operating activities + depreciation + impairment + fluctuations in provisions
(2) Net cash flow: Result after taxes + depreciation + impairment + fluctuations in provisions
(3) REBITDA: EBITDA from recurring operating activities
(4) Gearing Ratio: Net financial debt/Equity
NOTES TO THE CONSOLIDATED KEY FIGURES
3.1 Turnover
The Ter Beke group realises a strong result in difficult economic circumstances.
The total turnover of the group amounts to EUR 191.4 million in the first six months versus EUR 192.1 million in 2008.
The turnover evolution is explained by a decrease of the turnover of the ready meals division with EUR 3 million (-4.7%). This is the net effect of the termination of unprofitable volume contracts in France in the first semester of 2008 (see earlier press releases) and the decrease in raw material prices that was charged on in the sales prices towards the customers on the one hand and the autonomous growth of our core product lasagne in our home markets.
The turnover of the processed meats division increases by EUR 2.3 million (+1.8%). This positive evolution is the result both of the growth of service slicing activities in the Netherlands and the growth of the traditional processed meat activities in our home markets.
The turnover increase is slowed down by the decreasing raw material prices that were passed on in the sales prices and by the British Pound exchange rate that was on average lower than in the same period of last year.
3.2. Results of operating activities
The EBITDA increases by EUR 1.3 million (+8.7%) from EUR 14.7 million in 2008 to EUR 16.0 million in 2009. This improvement was realised through a profitable growth of the turnover increased with the positive effect of the terminated contracts in France and through a strict control of variable and fixed costs.
The raw material price evolutions did not have a material impact on the result as the price decreases were passed on in the sales prices.
Compared to the first semester of 2008, the exchange rate evolution of the British Pound has a negative effect of about EUR 1 million on the 2009 EBITDA result. Thanks to the group's hedging policy, about EUR 0.7 million could be compensated. This amount is included in the financial results per 30 June 2009 (see further)
The 2008 EBITDA result contained a one time reorganisation cost of EUR 0.6 million relating to the French activities. A provision for this cost had already been set up in 2007. The use of this provision decreased non-cash costs in 2008 by EUR 0.6 million. This explains why the EUR 1.3 million improvement of the EBITDA versus 2008 results in an EBIT improvement of EUR 0.7 million.
3.3 Net financing costs
Net financing costs decreased by EUR 1.4 million compared to 2008.
EUR 1 million of this improvement is due to exchange rate results on the British Pound. A positive financial result of EUR 0.7 million was realised in the first semester of 2009 primarily because of the hedging of exchange rate risks. In the first half of 2008, an exchange rate loss of EUR 0.3 million was recorded.
Hence, the evolution of the British Pound exchange rate only has a limited influence on the operating result after net financing costs (EBT) compared to last year.
The remainder of the improvement in net financing costs results primarily from one time interest income on tax receivables.
3.4 Income taxes
The income tax rate in the first half of 2009 (23.3%) is lower than the tax rate in the same period of 2008 (26.3%). This is primarily the result of the changed treatment of the captive reinsurance structure pursuant to the winning in 2008 of the litigation relating to this structure.
3.5 Balance Sheet
Under IAS-34, the balance sheet figures of 30 June 2009 are to be compared with those of 31 December 2008. As there have been no changes in the consolidation circle since 31 December 2008, changes in balance sheet items are limited.
The decrease of the balance sheet total with EUR 8.4 million is primarily explained by a decrease in receivables. Next to the normal seasonality effect, this decrease results essentially from a decrease on the line "other receivables".
The group invested EUR 8.5 million in tangible fixed assets in the first half of 2009. These investments related primarily to infrastructure and capacity investments in the slicing plants.
Net debt decreases with EUR 6.0 million. This is the net effect of the realised cash flow, the payment of investments and dividends and an improved working capital position.
The change in equity is mainly the result of the net profit after tax of the first semester minus the dividend awarded over the previous financial year.
PROSPECTS FOR 2009
In 2009, the group will continue to work on improving the profitability of its activities, both in the processed meats division and in the ready meals division. Pressure on the margins and the cost increase pursuant to the Belgian collective labour agreements will be compensated through further improvements in the entire supply chain and through continued cost control and cost reduction efforts. In 2009, Ter Beke will continue to invest in its Come a casa® brand.
Save for unexpected market circumstances, Ter Beke expects the improvement of the operating result in the first semester to continue over the full year 2009.
FINANCIAL CALENDAR
| Business update third quarter 2009 | 6 November 2009 after trading hours | |
| Annual result 2009 | 26 February 2010 after trading hours | |
| Annual report 2009 | At the latest 30 April 2010 | |
| Business update first quarter 2010 | 7 May 2010 after trading hours | |
| General meeting 2010 | 27 May 2010 at 11.00 | |
| Half year result 2010 | 27 August 2010 after trading hours |
HALF YEARLY FINANCIAL REPORT
The half yearly financial report of the group is available on the website in the Investor Relations module under "Other Financial Info" or by clicking the following link: http://www.terbeke.com/e/investor_relations/pdf/20090828-hfv.pdf
The half yearly financial report contains the condensed consolidated financial statements drawn up in accordance with IAS 34, the declaration without reservations of the auditor on his limited review and the other legally required specifications.
CONTACTS
If you have any questions on the present half year report or for further information, please contact:
| Marc Hofman Managing Director Tel.: +32 (0)9 370 13 16 E-mail: m.hofman@terbeke.be |
René Stevens Chief Financial Officer Tel.: +32 (0)9 370 13 45 E-mail: rene.stevens@terbeke.be |
TER BEKE IN BRIEF
Ter Beke (Euronext Brussels: TERB) is an innovating Belgian fresh foods
group selling its range of products in 10 European countries.
The group has 2 core activities: processed meats and fresh ready meals; it has 9 industrial sites in Belgium, the Netherlands and France and employs approximately 1.800
people.
Ter Beke generated a turnover of EUR 393 million in 2008.
Processed Meats Division
- Producer of fine processed meats for the Benelux, the United Kingdom and Germany
- 4 production plants in Belgium (Wommelgem, Waarschoot, Marche-en-Famenne and Herstal) and 4 centres for slicing and packaging of processed meats, 2 of which are in Belgium (Wommelgem and Veurne) and 2 in the Netherlands (Milsbeek and Ridderkerk)
- Innovating in the segment of prepackaged processed meats
- Distribution brands and own brand names L´Ardennaise® and Daniël Coopman®
- Approximately 1.050 employees
Ready Meals Division
- Producer of fresh ready meals for the European market
- Market leader in fresh lasagne in Europe
- 3 production plants, 2 of which are in Belgium (Wanze and Marche-en-Famenne) and 1 in France (Alby-sur-Chéran)
- Brand names Come a Casa®, Pronto® and Vamos® in addition to distribution brands
- Approximately 750 employees