7 October 2008 - At its meeting convened on October 3rd, 2008, the Supervisory Board examined the consolidated accounts and financial statements presented by the Executive Board for financial year 2007-2008.
Turnover
Annual turnover for FY 2007-2008 amounted to 1490.1 million euros—equivalent to an 18.9 % increase on the previous year's figure and to a 1.3 % increase on a like-for-like basis—despite unfavourable economic conditions, particularly in the fourth quarter.
In the European Union, turnover was up 1.8%, driven by sales in Central Europe and France. Outside the European Union, the group recorded a 184.7 % increase in turnover, due notably to the consolidation of the Canadian manufacturer, Aliments Carrière, acquired at the beginning of the financial year. On a like-for-like basis, operations in Eastern Europe were voluntarily restrained during preparatory work for the introduction of new supply conditions for the Russian market in the summer of 2008.
Canned-vegetable sales were up 16 % (1.6 % on a like-for-like basis), while frozen-vegetable sales rose by 48.8 % (2.2 % on a like-for-like basis). Over and above the impact of the integration of Aliments Carrière, the successful launch of several innovative frozen products in France also contributed to the group's performance.
Chilled-vegetable sales, on the other hand, remained stable, despite the disruptions caused by the fire at a bagged-salad production facility in Italy at the beginning of the year. A new site was brought on stream at the beginning of July.
Operating profit
Operating profit on ordinary activities, increased 39.5 % to close at 100.4 million euros, i.e., 6.7 % of turnover as opposed to 5.7 % in the previous financial year.
This improvement in profitability was achieved despite unfavourable foreign exchange rates, increases in the prices of raw materials and consumables, a sharp increase in marketing costs and the complete destruction of the San Paolo site in Italy.
After deduction of non-recurrent items, operating profit amounted to 98.6 million euros (up 17.4 %), despite an unfavourable base effect resulting from the impact of the change in the method of inventory valuation introduced the previous year (+ 14 million euros).
Financial result
The financial result reflects a burden of 25 million euros (as opposed to 12.3 million euros in FY 2006-2007). This variation is mainly due to the funding of the acquisition of Aliments Carrière. On a like-for-like basis, the Group's average indebtedness remained unchanged and the group enjoyed the benefits of instruments used to hedge its financial risks, as well as its July 2007 issuing of OBSAAR convertible bond in the amount of 150 million euros.
Net profit
The group's share of net profit stood at 51.2 million euros, after deduction of taxes, which were down 2 million euros on the previous year's figure. At the General Meeting of Shareholders scheduled to be held on December 4th, 2008 in Villeneuve d’Ascq, the Executive Board will propose the distribution of a dividend of 1.50 euros per share, up 11%.
Prospects
The severe worldwide economic crisis, coupled with the decline in consumers' purchasing power, continue to feed the current climate of uncertainty.
However, a very significant proportion of the group's turnover is accounted for by distributorbrand and first-price products (43 %), which is a very positive position for the group in this particular environment. This situation could even open up interesting opportunities for growth. Indeed, with the acquisition of La Corbeille, which is expected to be finalized in the 4th quarter of 2008, and the implementation of agreements entered into with Gélagri for the distribution of frozen products under the distributor's brand, the group possesses the financial and human resources it would need to seize future opportunities and continue to strengthen its leading position in the buoyant prepared-vegetables market.