8 March 2006 - As forecast at the time of the half-yearly results press release, the Group's results for 2005 are lower than those of 2004. Changes in our operating environment and the implementation of targeted action plans have however enabled the Group to limit the extent of the erosion during the second half of the year.
Current operating profit for Cheese Products has been stabilized thanks to the strength of our portfolio within most of our markets, although the French market has remained characterized by weak levels of consumption and by pressure to reduce selling prices. Other factors affecting operating profit include a difficult market environment for veal as well as the continuing impact of developments in the Common Agricultural Policy. The Gastronomy division has seen an improvement in performance.
Non-recurring items have had an unfavorable net impact, whilst net financial expense has also increased as a result of applying IAS 32 and 39. However the income tax charge has benefited from the recognition of a certain number of deferred tax credits.
Total net indebtedness as of December 31, 2005 amounts to 63.7% of equity compared to 68.2% as of December 31, 2004.
|
(In millions of euros) |
2005 |
2004 |
% |
Net sales
Current operating profit
Net financial expense
Total net income
Group share of net income
|
3,349.5
134.5
- 33.1
67.8
62.8 |
3,304.5
147.9
- 30.7
92.3
82.2 |
+ 1.4%
- 9.1%
- 26.5%
- 23.6% |
Dividend
At the Annual General Meeting on 26 April 2006, the Board will recommend the distribution of a dividend of 1.4 euros per share.
Outlook for 2006
The action plans already underway throughout the Group, and the perspective of a more favorable environment than in 2005, should have a positive effect on Bongrain SA’s financial statements.