Belgium: Lotus Bakeries Half Year Report 2006

Source: Lotus Bakeries NV
11/09/2006

Gent, Sep. 1

Daily News Alerts

—	Lotus brand sales up 6%
—	Integration of Koninklijke Peijnenburg proceeding to plan

1.1st half 2006 results

The table below sets out the results for the first half of 2006, compared with 2005. All figures are calculated in accordance with IFRS standards.

Income statement (in EUR thousands)	30/06/06	30/06/05	Change %
Turnover	76,025	74,339	+2.3
Depreciation	(3,924)	(3,880)	+1.1
Current operating result (REBIT)	6,435	6,327	+1.7
Non-current operating result	(143)	251	-
Operating result (EBIT)	6,293	6,578	-4.3
Financial result	(392)	(771)	-49.2
Result before taxes	5,901	5,807	+1.6
Income taxes	(1,943)	(2,056)	-5.5
Result after taxes	3,958	3,751	+5.5
Result using equity method	138	30	+360.0
Net result	4,096	3,781	+8.3
Net result - minority interest	37	13	+184.6
Net result - Group share [M1]	4,059	3,768	+7.7
Self-financing (in EUR thousands)
Current operating cash flow (REBITDA) (1)	10,333	10,290	+0.4
Net cash flow	8,520	8,238	+3.4
Key figures per share (in EUR) (6-month basis)
Current operating result (REBIT)	8.23	8.15	+1.0
Current operating cash flow (REBITDA)	13.22	13.26	-0.3
Net result - Group share	5.19	4.85	+7.0
Weighted average no. of shares	781,849	776,203	-

(1)Current operating cash flow is defined as current operating result + depreciation + provisions and amounts written off

2.Explanation

The acquisition of Koninklijke Peijnenburg took place effective 30 June 2006 and is therefore not reflected in the half-yearly results [M2]. Peijnenburg’s earnings will therefore be consolidated from 1 July 2006 onwards.

2.1Turnover

Consolidated turnover for the 6 months to 30 June 2006 is up more than 2% on with 2005. The Lotus Bakeries group has opted for a brand strategy. As a result sales under the Lotus brand rose by 6% in the first half, whilst sales under distribution brands again fell significantly.

2.2Operating result

Despite the cost of starting up Lotus’s own commercial organization in the United Kingdom and slightly higher marketing expenditure, current operating result rose in line with the rise in turnover.

The non-current operating result of EUR -143,000 relates mainly to the balance of various disposals and decommissionings of tangible fixed assets.

2.3Financial result

As the shares of Koninklijke Peijnenburg were taken over as at 30 June 2006, the debt incurred to finance the take-over does not impact the financial results for the first half. With the fall in net financial debt in the course of the first half, the financing costs have reduced.

Net financial debts at 30 June 2006 amounted to EUR 79 million. This includes the debt incurred to finance the Peijnenburg takeover.

2.4Net result and net cash flow

Net result rose by 8.3 % compared with 2005.Net cash flow was also up 3.4%.

3. Koninklijke Peijnenburg

The integration of Peijnenburg and Lotus in the Netherlands is proceeding to plan. Lotus’s former sales office in Driebergen was closed at the end of August.Both commercial organizations are now fully integrated into Peijnenburg’s organization in Geldrop.

4. Outlook

The previously published forecasts for Lotus Bakeries excluding Peijnenburg can be confirmed. Turnover and REBITDA for 2006 are expected to be in line with 2005 figures, with a further rise in Lotus brand sales but falling distribution brand sales.

Peijnenburg will be fully consolidated from the second half of 2006. As a result consolidated turnover for the last six months of the year is expected to rise by around EUR 23 million and REBITDA by around EUR 5 million compared with the same period in 2005 for Lotus Bakeries without Peijnenburg.

5.Financial calendar

Financial analysts’ meeting	12 September 2006
Announcement of 2006 annual results	14 February 2007
Annual General Meeting of Shareholders	12 May 2007

REPORT OF THE STATUTORY AUDITOR ON THE ACCOUNTING DATA PRESENTED IN THE SEMI-ANNUAL COMMUNIQUE OF LOTUS BAKERIES NV

We have compared the accounting data presented in the semi-annual communiqué of Lotus Bakeries NV with the interim condensed consolidated financial statements as at 30 June 2006, which show a balance sheet total of € 179.393 thousand and income for the period of € 4.096 thousand. We confirm that these accounting data do not show any significant discrepancies with the interim condensed consolidated financial statements.

We have issued a review report on these interim condensed consolidated financial statements, in which we declare that, based on our review, nothing has come to our attention that causes us to believe that these interim condensed consolidated financial statements are not prepared, in all material aspects, in accordance with IAS 34 Interim Financial Reporting, as adopted for use in the European Union.