9 May 2007
Highlights
• Revenue in Q1-07 was EUR 388.5 million (Q1-06: EUR 414.5 million). Own brands grew by more than 4%. Decline in TOL NA was strongly reduced. The negative currency impact was EUR 19 million.
• EBIT increased by 13% from EUR 10.8 million in Q1-06 to EUR 12.1 million in Q1-07, despite a negative effect of EUR 0.6 million in total related to currency and restructuring Karl Kemper Germany.
• Net profit was EUR 21.5 million in Q1-07 compared to EUR 5.0 million in Q1-06. Main drivers were the improved EBIT and the book profit made on the divestment of the Private Label operations.
• An additional USD 25 million in annualized new contracts was awarded to North America Distribution.
CEO statement
Ad Veenhof, Wessanen CEO, says: “The results in Q1-07 are fully in line with our expectations. Our brands performed quite well; Europe Branded grew by 4.2%. Top line growth at North America Branded was essentially flat as a result of 7% growth in our own brands offset by terminated sole agency product lines totalling USD 2 million. Europe Distribution continued its growth trend and the top line trend for North America Distribution has clearly improved from the prior four quarters. The recently awarded contracts are another sign of growing confidence in TOL NA’s capabilities. EBIT margins of all four business units were positive and each improved.
We expect all four business units to continue this positive trend and show top line growth (at constant exchange rates) from Q2-07 onwards.