FLEURY MICHON: 2017 REVENUE
2017 revenue of€717.0 million(down 2.8%)
Fourth-quarter revenue growth of 0.7%
Strong revenue growth of 7.5% for the International Operations segment in 2017
Outlook: confirmed improvement in recurring operating margin in the second half of 2017
€717.0m | 2.8% | €179.0m | 0.7% |
full-year 2017 | decline in full-year 2017 | fourth-quarter 2017 | increase in fourth-quarter |
consolidated revenue | consolidated revenue | consolidated revenue | 2017 consolidated revenue |
Pouzauges-30 January 2018:Fleury Michon, the French leader in fresh Charcuterie, Prepared Meals and Surimi products, reported revenue of€717.0 million in full-year 2017, down 2.8% year-on-year.
TheGroup'srevenue for the fourth quarter of 2017 came in at€179.0 million, up 0.7% compared with the prior-year period.
The International Operations segment posted sustained revenue growth of 7.5% in 2017, and 29.3% in the fourth quarter.
Fleury Michon was a leading participant inFrance'snational food conference and continues to deploy its"Helpingpeople eat better everyday"project. The strategic priorities and the work carried out-and ongoing-to develop the Organic, Vegetarian, Healthy Snack and Sales and Services product ranges have been especially well received by all stakeholders. Consumers, in particular, have expressed high expectations in these areas.
REVENUE BY QUARTER*
REVENUE BY QUARTER (IN €M)
First quarter
Second quarter
Third quarter
Fourth quarter
2016184.7 187.3 188.1 177.7
2017177.7 182.1 178.2 179.0
CHANGE-3.8% -2.8% -5.3% +0.7%
Total
737.8
717.0
-2.8%
* At constant exchange rates.
REVENUE BY BUSINESS SEGMENT*
* At constant exchange rates.
FRENCH SUPERMARKETS
For the year ended 31 December 2017, the French Supermarkets business segment (83.8% of consolidated revenue) generated revenue of€601.1 million, down 3.9% year-on-year, with a 1.0% decline in the fourth quarter.
Revenue from Fleury Michon-brand products amounted to€574.5 million in 2017 (down 2.7%), slipping 0.7% in the fourth quarter.By market, revenue for Fleury Michon-brand products came in at:
▪€438.3million (down 1.6%) for Charcuterie ranges (76.3% of French Supermarkets segment revenue), with a 0.3% increase in the fourth quarter;
▪€94.0 million (down 7.4%) for Prepared Meals ranges (16.4% of segment revenue), with a 6.2% decrease in thefourth quarter;
▪€42.2 million (down 3.5%) for Surimi ranges (7.3% of segment revenue), with a 5.1% rise in the fourth quarter.
These movements reflect:
▪a far-reaching transformation of the food market, in line with changing consumer expectations;
▪reduced promotional pressure for Fleury Michon against a backdrop of significant increases in raw material prices;
▪the discontinuation of certain products, as part of a strategy to optimise ranges and their performance.
GROWTH OF INTERNATIONAL OPERATIONS
TheInternational Operations business segment(8.2% of consolidated revenue) generated revenue of€58.8 million in full-year 2017, up 7.5%, with a 29.3% increase in the fourth quarter. The rise takes into account the"seafood salad"business subcontracted to Piatti Freschi Italia (PFI), FleuryMichon'sItalian joint venture.
In Canada,Delta Daily Food Canada(DDFC) posted full-year revenue of€40.2 million, up 0.1%. The revenue stability seen in2017 mainly resulted from:
- the loss of a contract for occasional Eat-Out business;
- a 13% rise in airline catering revenue, partly attributable to an expanded customer base.
As for theequity-accounted joint ventures, Platos Tradicionales in Spain grew by 7.0%. In Italy, PFI contracted by 7.7% during the year, reflecting the financial repercussions of a fire at a production site, which were partly offset by the revenue contributed by SGI following its acquisition in summer 2017. Viva la Mamma-brand products made considerable gains during the year.
SALES AND SERVICES
Revenue from theSales and Services business segment(8.0% of consolidated revenue) came in at€57.1 million, down 1.4% year-on-year, with a 5.1% contraction in the fourth quarter. The Room Saveurs business saw a healthy 5.2% upswing in revenue, which totalled€27.2 million in 2017, boosted by an 8.4% jump in the fourth quarter. However, the businesssegment'sgrowth has been held back by lower airline catering revenue from French departures.
OUTLOOK
The Fleury Michon Groupconfirms the improvement in its recurring operating margin in the second half of 2017.Recurring operating margin is expected to be higher than what was previously announced and to exceed 2% in second-half 2017.
Financial community contact:
Jean-Louis Roy
Senior Vice President Administration and Finance
Phone: +33 (0)2 51 66 30 20-infos.finances@fleurymichon.fr
NEXT ANNOUNCEMENT
www.fleurymichon.fr
Media contact:
Publicis Consultants
Phone: +33 (0)1 44 82 47 95-fleurymichon@consultants.publicis.fr
3 April 2018 after market close 2017 results First-quarter 2018 revenue
Fleury Michon is an independent, medium-sized French family company with an international outlook. Founded in 1905, we are now one of France's leading food brands. We prepare fresh, ready-to-eat, everyday meals.
Our corporate project of"Helpingpeople eat better every day" reflects our vision for the future. It's the vision of a brand and a Company that is open to the world and close to its customers, recognises the value of its people and encourages cooperation with its stakeholders. It's the vision of an innovative, responsible brand that wants to help people eat better in the future.
Fleury Michon shares (codes: ISIN FR 0000074759, Reuters FLMI PA, Bloomberg FLE FP) are listed on the Euronext Paris market, Eurolist B, and are eligible for French SME equity-based savings accounts.
Fleury Michon SA published this content on 01 February 2018 and is solely responsible for the information contained herein.
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