Oct 6 - At its meeting convened on October 2nd, 2009, the Supervisory Board examined the consolidated accounts and financial statements presented by the Executive Board for financial year 2008-2009.
1/ Turnover
Turnover for FY 2008-2009 stood at 1,523.9 million euros, up 2.3 % despite a difficult consumer environment.
In the European zone, annual sales were up 1.2 %. Sustained canned-vegetable sales, bolstered by the November 1 2008 incorporation into the group of the Belgian canned-vegetable producer, La Corbeille, was offset by a downturn in chilled-vegetable sales, which proved to be more sensitive to prevailing economic conditions. Frozen-vegetable sales were doubly affected by the April 1 2009 deconsolidation of Gelagri's distributor-brand operations, and the significant decline in commercial catering sales in the 2nd half of the year.
Non-Europe zone sales—mainly in the Eastern European and North American territories—remained buoyant despite unfavourable exchange rates, gaining 5.7 % at current exchange rates (+ 14.4 % at constant exchange rates).
Through sustained media pressure, major promotional operations, the successful launch of new products and the commitment of its sales teams, the Group managed to increase its market share in several countries.
2/ Operating profit
Operating profit on ordinary activities amounted to 101.7 million euros, as opposed to 100.4 million euros in the previous financial year; the operating margin remained unchanged at 6.7%
This was achieved by the Group's ability to maintain its sales margins, coupled with significant efforts to reduce costs and expenses so as to better adapt the company to its environment. As such, the positive effects of external growth were able to compensate for the unfavourable impact of foreign-exchange rates.
After deduction of non-recurrent items, operating profit amounted to 99.3 million euros, as opposed to 98.6 million euros in the previous financial year.
3/ Financial result
The financial result reflects a burden of 60.8 million euros, as opposed to 25 million euros in the previous financial year.
This sharp increase in the financial result was mainly due to the impact of the fair-value evaluation of hedging instruments in accordance with IAS 32/39 standards, and to latent losses associated with the financing of foreign subsidiaries.
However, while both of these factors are taken into consideration at the accounting level, neither corresponds to an actual cash outflow. The interest burden remained unchanged.
4/ Net profit
Given the financial result, group net profit amounted to 26.6 million euros, as opposed to 51.2 million euros in FY 2007-2008. Cash flow increased to 126.9 million euros, as opposed to 125 million euros in the previous year.
At the General Meeting of Shareholders scheduled to be held on December 3rd in Villeneuve d’Ascq, the Executive Board will propose the distribution of a dividend of 1.50 euros per share (unchanged compared to the previous financial year).
5/ Prospects
Through its sustained growth, the preservation of its operating margin and its capacity to generate cash, the Bonduelle Group has clearly demonstrated its ability to maintain its position, despite adverse economic conditions.
Owing to the prevailing economic crisis, the outlook, in terms of the consumer climate, is highly uncertain.
However, the Group is confident in the relevance of its economic model (agri-industrial integration, and multi-brand, multi-network, international operations). Il will continue to pursue its development both internally (industrial development in Brazil and Ukraine) and externally, and expects to show an increase in operating in FY 2009-2010.