Sales decline in the first half of 18/19
The turnover of the Bonduelle Group in the first half of the financial year 2018-2019 amounted to €1…The turnover of the Bonduelle Group in the first half of the financial year 2018-2019 amounted to €1,406.6 million. This represents a decline of -1.0% in terms of reported figures and on a comparable basis *. The changes in the scope of consolidation due to the acquisition of Del Monte's business activities at the beginning of July 2018 contributed + 1.2% to the change in sales during the reporting period. Exchange rate fluctuations - especially the weakening of the Russian ruble and the Canadian dollar - had a negative impact and dampened growth by -1.1%. Second-quarter revenue declined -0.7% in terms of reported numbers and -1.0% on a comparable basis *.
Region Europe
Region Europe, which accounts for 45.7% of total sales, grew + 1.4% in the first six months in terms of reported figures and + 1.6% on a comparable basis *. All three operating segments of the Group contributed positively to the development of this region. The second quarter showed accelerated growth, with + 2.2% improvement in reported numbers and + 2.4% on a like-for-like basis *. After a difficult start to the fiscal year, the Canned and Frozen Food operating segments posted strong, solid growth in the second quarter. In contrast, the Fresh Products operating segment posted subdued growth in the second quarter, which was partly influenced by the demonstrations in France. Fresh produce benefited from the favorable weather conditions in the first three months of the fiscal year.
Region Non-Europe
Sales in the region outside Europe, which accounts for 54.3% of total sales, decreased by -2.9% in terms of reported figures and by -3.1% on a comparable basis * (Q2). 3.0% and -3.6%, respectively). In North America, settlement of some sales contracts with canned and frozen food producers was delayed in the first quarter and was postponed to the second quarter as expected. In addition to acquiring new customers and launching a Bonduelle salad bowl range in Canada at the end of the half year, activities in the Fresh Products segment in North America faced some challenges: the targeted cessation of unprofitable product ranges at Bonduelle Fresh Americas (cut fruit, packaged salads ); a warning from health authorities in the US and Canada about eating salads that affected all industry stakeholders that Bonduelle or its suppliers did not participate in, and the diversification strategy of one of our US customers in sourcing. In the second quarter, Russia confirmed the strong sales momentum of the Bonduelle brand in the canned and frozen foods segments in the first half of the year. In particular, some innovations in corn, olives and mixed vegetables in glasses, which are meanwhile produced in Russia, contributed to this.
Acquisition of a deep-freeze plant in the USA
On January 22, 2019, the Bonduelle Group announced that it had entered into discussions with the US Seneca Foods Corporation (NASDAQ: SENEA, SENEB) regarding the acquisition of its plant in Lebanon, Pennsylvania. The factory, which packs frozen products, was built in 2008 and taken over by Seneca in 2010. It has a capacity of 45,000 tons on seven packaging lines in perfect condition, has a large storage capacity and employs 140 permanent employees. The acquisition, which includes the industrial equipment, frozen food inventory and Lebanon operations, is expected to close in the coming weeks.
Result of the dividend payment option in cash and / or in shares for the financial year ended 30 June 2018The Annual General Meeting on 6 December 2018 has approved the distribution of a dividend of € 0.50 per share for the As of 30 June 2018, each shareholder was offered an option to cash and / or share for the total amount of the dividend, less any compulsory contributions. After the expiration of the option period, which ran from December 14 to December 28, 2018, a total of 257,222 new shares were determined. This corresponds to a percentage of 0.79% of the share capital. Following this measure and based on the press release dated 31 December 2018 on the exercise of voting rights, the capital consists of 32,538,340 shares with a nominal value of EUR 1.75 each. This corresponds to 51,339,625 theoretical voting rights.
Outlook
The Bonduelle Group expects modest sales growth for the financial year 2018-2019 at constant exchange rates. Not expected to grow internally, it is expected to be driven primarily by the acquisition of Del Monte's business and, to a limited extent, and subject to the completion of the frozen goods transaction in the US. The detailed analysis of the half-year performance, combined with the initial results of the ongoing trade talks, will help to further develop the business and profitability targets for the 2018-2019 fiscal year.