BONDUELLE Consolidated income statement
(in thousands of euros) | Notes | At 2019/06/30 | At 2020/06/30 | |
Revenue | 3.1 | 2,777,120 | 2,854,876 | |
Purchases and external charges | 3.2 | (2,014,385) | (2,025,193) | |
Employee benefits expenses | 4.1 | (560,814) | (598,242) | |
Depreciation, amortization and impairment | (89,422) | (112,214) | ||
Other operating income | 3.3 | 43,806 | 26,790 | |
Other operating expenses | 3.3 | (32,641) | (37,362) | |
Current operating profit | 123,665 | 108,654 | ||
Non-recurring items | 3.4 | (7,851) | (6,766) | |
Operating profit | 115,814 | 101,888 | ||
Cost of net debt | (21,887) | (20,344) | ||
Other financial income and expenses | (750) | (5,514) | ||
Financial result | 5.2 | (22,637) | (25,858) | |
Share of net income from associates | (48) | (80) | ||
Profit before tax | 93,128 | 75,950 | ||
Income tax | 6.1 | (20,555) | (21,348) | |
NET INCOME | 72,574 | 54,602 | ||
• | attributable to owners of the company | 72,617 | 54,620 | |
• | attributable to non-controlling interests | (44) | (18) | |
BASIC EARNINGS PER SHARE | 7.1 | 2.26 | 1.71 | |
DILUTED EARNINGS PER SHARE | 7.1 | 2.24 | 1.68 |
Gains and losses recognized directly in equity
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 |
Net income for the period | 72,574 | 54,602 |
Items that may be reclassified subsequently to P&L | 16,414 | (25,224) |
Cash flow hedge | (1,915) | (277) |
Translation adjustments | 17,672 | (25,119) |
Tax effects | 657 | 172 |
Items that may not be reclassified subsequently to P&L | (996) | (7,855) |
Actuarial gains and losses on defined benefit plans | (1,483) | (1,581) |
Tax effects | 487 | 343 |
Unrealized gains and losses on financial assets (1) | 0 | (6,616) |
Income and expenses recognized directly in equity | 15,419 | (33,079) |
TOTAL RECOGNIZED INCOME AND EXPENSES | 87,992 | 21,523 |
attributable to owners of the company | 88,036 | 21,541 |
attributable to non-controlling interests | (44) | (18) |
- Includes in particular changes in the fair value of Investments in other non-consolidated companies, measured at fair value through other comprehensive income.
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Consolidated balance sheet
Assets
(in thousands of euros) | Notes | At 2019/06/30 | At 2020/06/30 |
Non-current assets | 1,122,884 | 1,203,975 | |
Other intangible assets | 8.2 | 57,098 | 58,478 |
Goodwill | 8.1 | 481,881 | 483,183 |
Property, plant and equipment | 8.3 | 527,614 | 523,618 |
Rights of use | 8.4 | 0 | 83,669 |
Investments in associates | 278 | 1,589 | |
Other non-current financial assets | 5.4 | 38,519 | 30,175 |
Deferred taxes | 6.1 | 14,588 | 21,133 |
Other non-current assets | 5.3 | 2,908 | 2,130 |
Current assets | 988,406 | 968,904 | |
Inventories and work-in-progress | 3.5 | 627,426 | 627,128 |
Trade and other receivables | 3.6 | 324,163 | 311,075 |
Tax receivables | 4,392 | 9,004 | |
Other current assets | 5.3 | 11,883 | 8,336 |
Other current financial assets | 5.3 | 3,849 | 6,723 |
Cash and cash equivalents | 5.6 | 16,693 | 6,638 |
TOTAL ASSETS | 2,111,290 | 2,172,879 | |
Liabilities and shareholders' equity
(in thousands of euros) | Notes | At 2019/06/30 | At 2020/06/30 |
Shareholders' equity (group share) | 717,398 | 709,853 | |
Share capital | 56,942 | 56,942 | |
Additional paid-in capital | 38,559 | 38,559 | |
Consolidated reserves | 621,897 | 614,352 | |
Noncontrolling interests | 1.1 2 | 7,574 | 16 |
Shareholders' equity | 724,972 | 709,868 | |
Non-current liabilities | 637,651 | 680,833 | |
Financial debts | 5.6 | 564,215 | 541,442 |
Lease liabilities | 5.6 | 0 | 64,580 |
Employee benefit obligations | 4.2 | 26,076 | 28,007 |
Other non-current provisions | 9.1 | 9,103 | 10,798 |
Deferred taxes | 6.1 | 8,344 | 9,683 |
Other non-current liabilities | 5.3 | 29,913 | 26,325 |
Current liabilities | 748,668 | 782,177 | |
Current financial debts | 5.6 | 127,659 | 117,915 |
Current lease liabilities | 5.6 | 0 | 19,647 |
Current provisions | 9.1 | 7,866 | 7,677 |
Trade and other payables | 3.7 | 607,456 | 628,387 |
Tax payables | 3,800 | 6,348 | |
Other current liabilities | 5.3 | 1,887 | 2,203 |
TOTAL LIABILITIES | 2,111,290 | 2,172,879 |
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Consolidated statement of cash flows
(in thousands of euros) | Notes | At 2019/06/30 | At 2020/06/30 | ||
Net income | 72,574 | 54,602 | |||
Share of net income from associates | 48 | 80 | |||
Depreciation, amortization and impairment | 5.1 | 88,254 | 114,603 | ||
Other components of net income with no cash impact | (2,189) | 629 | |||
Deferred tax | 6.1 | (2,604) | (5,508) | ||
Accrued interest | (1,637) | (554) | |||
Gross cash flows from operating activities | 154,446 | 163,852 | |||
Change in WCR | (35,449) | 16,207 | |||
Net cash flows from operating activities | 118,997 | 180,059 | |||
Acquisitions of consolidated companies, net of cash and cash | (28,142) | (1,391) | |||
equivalents | |||||
Capital expenditure and acquisition of intangible assets(1) | 8.2 & 8.3 | (118,426) | (97,596) | ||
Acquisitions of financial assets | (114) | (911) | |||
Disposal of fixed assets and financial assets(2) | 3.3 | 1,475 | 748 | ||
Net change in loans and other non-current financial assets | 448 | 567 | |||
Net cash flows from (used in) investing activities | (144,759) | (98,582) | |||
Transactions with non-controlling interests | 2.1 | 0 | (18,539) | ||
(Acquisition) Disposal of treasury shares | (1,306) | (2,653) | |||
Increase (Decrease) in non-current financial liabilities | 5.6 | 128,583 | (19,525) | ||
Increase (Decrease) in current financial liabilities | 5.6 | (100,278) | (11,210) | ||
Increase (Decrease) in lease liabilities | 5.6 | 0 | (20,825) | ||
Dividends paid to group and minority shareholders | 5.4 | (8,893) | (16,339) | ||
Net cash flows from (used in) financing activities | 18,106 | (89,091) | |||
Impact of exchange rate changes | 456 | (2,440) | |||
Change in cash and cash equivalents | (7,200) | (10,054) | |||
Cash and cash equivalents - opening balance | 23,893 | 16,693 | |||
Cash and cash equivalents - closing balance | 16,693 | 6,638 | |||
CHANGE IN CASH AND CASH EQUIVALENTS | (7,200) | (10,054) |
- Investments correspond to the acquisitions of property, plant and equipment and intangible assets described in notes 8.2 and 8.3, plus the change in related trade payables presented in note 3.7.
- Disposals of fixed assets correspond to the proceeds received less advances and down-payments on fixed assets.
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Consolidated statement of changes in equity
Additional | Actuarial | Shareholders' | Non- | Total | ||||||
In number of | Share | paid-in | gains and | Treasury | Translation Accumulated | equity | controlling | shareholders' | ||
(in thousands of euros) | shares | capital | capital | losses | shares | reserves | income | (group share) | interests | equity |
Shareholders' equity at | 32,281,118 | 56,492 | 31,738 | (3,903) | (7,802) | (95,810) | 658,524 | 639,239 | 7,577 | 646,817 |
July 1, 2018 | ||||||||||
Income recognized | (995) | 17,672 | (1,258) | 15,419 | (1) | 15,418 | ||||
directly through equity | ||||||||||
Net income at 2019/06/30 | 72,617 | 72,617 | (44) | 72,574 | ||||||
Free allocation of shares | 978 | 978 | 0 | 978 | ||||||
Puts on non-controlling | (63) | (63) | 88 | 26 | ||||||
interests | ||||||||||
Changes in scope of | (5) | (50) | (55) | (47) | (102) | |||||
consolidation | ||||||||||
Treasury shares | (755) | (364) | (1,119) | 0 | (1,119) | |||||
Other | (726) | (726) | 0 | (726) | ||||||
Dividends paid | 257,222 | 450 | 6,822 | (16,165) | (8,893) | 0 | (8,893) | |||
Shareholders' equity at | 32,538,340 | 56,942 | 38,559 | (4,903) | (8,557) | (78,138) | 713,495 | 717,398 | 7,574 | 724,972 |
June 30, 2019 | ||||||||||
Shareholders' equity at | 32,538,340 | 56,942 | 38,559 | (4,903) | (8,557) | (78,138) | 713,495 | 717,398 | 7,574 | 724,972 |
July 1, 2019 | ||||||||||
Income recognized | (1,238) | (25,119) | (6,722) | (33,079) | 0 | (33,079) | ||||
directly through equity | ||||||||||
Net income at 2020/06/30 | 54,620 | 54,620 | (18) | 54,602 | ||||||
Free allocation of shares | 2,084 | 2,084 | 0 | 2,084 | ||||||
Puts on non-controlling | (37) | (37) | 18 | (18) | ||||||
interests | ||||||||||
Transactions with non- | (139) | (10,842) | (10,980) | (7,558) | (18,539) | |||||
controlling interests | ||||||||||
Treasury shares | (2,142) | (345) | (2,487) | 0 | (2,487) | |||||
Other | (1,328) | (1,328) | 0 | (1,328) | ||||||
Dividends paid | (16,339) | (16,339) | 0 | (16,339) | ||||||
Shareholders' equity at | 32,538,340 | 56,942 | 38,559 | (6,280) | (10,699) | (103,257) | 734,588 | 709,853 | 16 | 709,868 |
June 30, 2020 | ||||||||||
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Notes to the annual consolidated financial statements
1. Accounting principles
NOTE 1.1 PREPARATION METHODS
The consolidated financial statements of the Bonduelle Group and its subsidiaries ("the group") for the 2019-2020 fiscal year have been prepared in accordance with the IFRS (International Financial Reporting Standards) published by the IASB (International Accounting Standards Board), and whose implementing regulation has been published in the official journal of the European Union.
The notes to the annual consolidated financial statements have been prepared in accordance with IFRS and follow recommendation 2012-02 of the Autorité des normes comptables (ANC - French Accounting Standards Board).
Standards, updates and interpretations first applicable to fiscal year 2019-2020:
Applicable to accounting periods beginning on, or after, July 1, 2019:
The main texts newly applicable in 2019 concerning the group are as follows:
- IFRS 16 "Leases" (see Note 1.1.1)
- IFRIC 23 "Uncertainty over Income Tax Treatments" clarifies the recognition and measurement principles applicable to income tax exposures. These risks arise when there is uncertainty related to a tax position held by the Company that could be challenged by the tax authorities. This interpretation only had a reclassification impact on the financial statements, between provisions for tax risks and tax payables.
There are no other new standards, updates or interpretations published and for which application is mandatory, that have significant impact for the group.
IFRS, applicable to accounting periods beginning on, or after, July 1, 2020, that were not adopted early for this fiscal year
The new IFRS standards, amendments or IFRIC interpretations that are mandatory for periods beginning on or after January 1, 2020 (and not applied early) are as follows:
- Amendment to IFRS 3: Definition of a "business";
- Amendments to IAS 1 and IAS 8: Definition of "material";
- Amendments to IFRS 9, IAS 39 and IFRS 7: Benchmark Interest Rate Reform;
- New revised conceptual framework for financial reporting to replace the 2010 framework.
The group does not anticipate any significant impact on its financial statements upon first-time application of these new texts as of July 1, 2020.
1.1. 1. Impact of the first-time adoption of IFRS 16
Accounting principles
On January 13, 2016, the IASB published IFRS 16 "Leases". IFRS 16 replaces IAS 17 and the associated IFRIC and SIC interpretations. IFRS 16 introduces changes in the principles for measuring, recognizing and presenting leases.
For lessors, the current distinction between operating and finance leases remains, with accounting treatment substantially unchanged.
However, it now requires the lessee to account for the vast majority of its leases using a single model equivalent to that used to account for finance leases under IAS 17.
The assumptions adopted by the Bonduelle Group among the transition and permanent treatment options provided for in IFRS 16 are as follows:
Transitional measures :
- use of the simplified retrospective method. No restatement of comparative periods;
- maintaining the treatment of old leases identified under IAS 17 and classifying the corresponding assets and liabilities as rights of use and lease liabilities, as permitted by the standard;
- the lease liability is measured at the present value of the lease payments remaining due. The group uses knowledge acquired retrospectively, for example to determine the term of a lease that contains renewal or termination options;
- the right of use at the transition date is equal to the lease liability, adjusted by the amount of prepaid or payable rents. Initial direct costs are excluded from the valuation of the right of use at the date of first application;
- exemption of old lease contracts with a residual term of less than 12 months as of July 1, 2019 and of low-value contracts retained by the group;
- the discount rates applied at the transition date are based on the incremental borrowing rates by geographical area plus a spread linked to the group. These discount rates have been determined taking into account the residual duration of the leases at the transition date. The weighted average incremental borrowing rate at July 1, 2019 was 2.8%;
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- as regards deferred tax, the group has elected to recognize deferred tax for all temporary differences arising from leases.
Permanent treatment :
- exemption of new short-term leases (less than 12 months including renewal periods with financial incentives) and low-value leases (five thousand euros);
- the lease term corresponds to the non-cancellable period of each lease, to which must be added any renewal options that the group is reasonably certain to exercise, and any termination options that the group is reasonably certain not to exercise.
On December 16, 2019, the IFRS Interpretation Committee ("IFRS IC") published a decision on the timetable for assessing the duration to be used to determine liabilities related to rental commitments. As a result, these liabilities are determined on the basis of a useful life rather than a contractual term, particularly in the case of commercial leases. The group has taken this decision into account in determining liabilities related to rental commitments as of July 1, 2019; - the discount rate corresponds to the incremental borrowing rate determined over the remaining term of the contracts for the entire group; this rate is defined according to the term of the lease in order to take into account payment profiles;
- the taking into account of non-rental components (mainly vehicle maintenance).
At their effective date, leases as defined by IFRS 16 "Leases" are recorded:
- as a capital asset (right of use) for the amount of the lease liability, plus any prepayments made to the lessor, the initial direct costs incurred, less any benefits received, and an estimate of the costs of dismantling or restoring the leased asset in accordance with the terms of the lease, if any; and
- as a financial liability for the amount of rent over the lease term as determined above, discounted at the rate specified above.
Rights of use are amortized on a straight-line basis over the lease term. Where the lease has the effect of transferring ownership of the asset to the lessee or where it includes a purchase option, which will be exercised with reasonable certainty, the right of use is depreciated over the useful life of the underlying asset on the same terms as those applying to owned assets.
In the consolidated statement of cash flows, payment of lease liabilities is presented in net cash flows from (used in) financing activities, in accordance with IFRS 16 "Leases".
Impact on the consolidated financial statements at June 30, 2020
The restatement of the opening balance sheet as at July 1, 2019 is as follows:
(in thousands of euros)
Assets | Equity & Liabilities | ||
Total non current assets | 92,307 | Total non-current liabilities | 72,606 |
Property, plant and equipment | (2,192) | Financial liabilities | (1,825) |
Right of use | 94,499 | Lease liabilities | 74,431 |
Total current assets | (1,182) | Total current liabilities | 18,519 |
Net other current assets | (1,182) | Current financial liabilities | (132) |
Current lease liabilities | 18,966 | ||
Trade and other payables | (315) | ||
TOTAL ASSETS | 91,125 | TOTAL EQUITY & LIABILITIES | 91,125 |
The main leases correspond to leases of plants, head offices and agricultural land in Europe and the United States. Other leases are for vehicles and industrial and agricultural equipment.
Reconciliation between the commitments for future minimum operating lease payments under IAS 17 as of June 30, 2019 and the financial lease liability recognized under IFRS 16 as of July 1, 2019 is as follows:
(in thousands of euros)
Operating leases commitments as of 2019/07/01 | 101,354 |
Financial leases reclassement (IAS 17) | 2,192 |
Other | (289) |
Discounting | (9,860) |
LEASE DEBT AS OF 2019/07/01 | 93,397 |
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The impacts of IFRS 16 at June 30, 2020 are as follows:
Current | Financial | Net | ||||||||||
operating | Income tax | REBITDA | ||||||||||
result | income | |||||||||||
(in thousands of euros) | profit | |||||||||||
Reported At 2020/06/30 | 108,654 | (25,858) | (21,348) | 54,602 | 221,198 | |||||||
IFRS 16 | 817 | (2,541) | 380 | (1,345) | 22,797 | |||||||
Reported At 2020/06/30 | ||||||||||||
(Excluding IFRS 16) | 107,837 | (23,316) | (21,728) | 55,947 | 198,401 | |||||||
Reported At 2019/06/30 | 123,665 | (22,637) | (20,555) | 72,574 | 213,087 | |||||||
Net cash | Net cash | |||||||||||
Non- | flows from | |||||||||||
Current | Shareholders' | flows from | ||||||||||
current | Net debt | (used in) | ||||||||||
assets | equity | operating | ||||||||||
assets | financing | |||||||||||
activities | ||||||||||||
(in thousands of euros) | activities | |||||||||||
Reported At 2020/06/30 | 1,203,975 | 968,904 | 709,868 | 715,234 | 180,059 | (89,091) | ||||||
IFRS 16 | 84,033 | (1,203) | (1,214) | 84,227 | 20,825 | (20,825) | ||||||
Reported At 2020/06/30 | ||||||||||||
(Excluding IFRS 16) | 1,119,942 | 970,107 | 711,083 | 631,007 | 159,234 | (68,266) | ||||||
Reported At 2019/06/30 | 1,122,884 | 988,406 | 724,972 | 654,748 | 118,997 | 18,106 |
1.1. 2. Information concerning the group and significant events
Listed on Euronext (Compartment B), Bonduelle SCA is a French limited partnership (société en commandite par actions). Bonduelle, a leading player in plant-based food, is in particular a market leader in processed vegetables both within and outside Europe. The Company operates in three business segments: canned, frozen and ready-to-use fresh vegetables (ready-to-eat prepared and fresh-cutready-to-use vegetables).
General Management approved the consolidated financial statements under IFRS and authorized the publication of the approved financial statements closed at June 30, 2020, which will be submitted for approval at the Shareholders' Meeting of December 3, 2020.
Bonduelle optimizes its financing through the implementation of a Neu CP program of € 300 million.
In a logic of constant search for optimization of its financing instruments, Bonduelle has set up a short-term negotiable debt securities program (Neu CP) of € 300 million. The inaugural issue was carried out on July 29, 2020 on particularly competitive terms, highlighting once again the investors' confidence in the group's financial strength.
This program, providing access to a new disintermediated and flexible short-term financing resource, replaces the confirmed financing lines that remain available to the group.
Acquisition of a joint minority stake in the Russian start-up Elementaree
Bonduelle announced on May 4, 2020 that it has participated in a funding round in partnership with the Russian Direct Investment Fund (RDIF), the sovereign wealth fund of the Russian Federation, and took a minority stake in the capital of Elementaree, a company that manufactures and delivers ready-to-cook meal kits, one of the leaders in the fast-growing market for meal kits in the Moscow and St. Petersburg conurbations. This operation, of a limited financial amount, illustrates the Bonduelle Group's ambitions to be the world reference in "well-living" through vegetable products, illustrated here via direct marketing to consumers through innovative channels.
Change in the shareholding structure for the Soléal company (France)
Established for more than 40 years in South-West of France, Bonduelle, a 48% shareholder of the Soléal company, acquired in July 2019 most of the interests of the Euralis, Maïsadour and Vivadour cooperatives held in the company.
The Soléal company includes 2 sweet corn and vegetable processing plants located in the South-West of France (Labenne and Bordères). Changes in the ownership of Soléal include some sourcing commitments, will strengthen the long term partnership with growers, and increase the competitiveness of the Bonduelle Group.
Impact of the COVID-19 epidemic on business and earnings for the 2019-2020 fiscal year
Faced with the current health crisis, the group's top priority is to secure the workplace to protect and reassure its employees, as well as its suppliers, partners and customers. Accordingly, the Bonduelle Group has set up a specific work organization and ensures strict compliance with the health and safety rules, which were reinforced during this period.
Since March, the group has taken action to limit the adverse impacts of the COVID-19 crisis.
Against this backdrop, the Bonduelle Group has seen contrasting trends in its business, depending on the segment - sustained demand in canned and frozen food mass-market retailing at the expense of fresh food, impacted by the decline in footfall and the collapse of out- of-home food service activities - and geographic zone, and has incurred additional costs.
Thus, the overall impact on revenue is not material, with the increase in the retail canned/frozen business offsetting the decline in the out-of-home food service and retail fresh food businesses.
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The additional costs related to this health crisis (agricultural commitments, employee bonuses, social distancing and reinforced hygiene measures), offset by savings (marketing expenses, travel) negatively impacted the current operating income for the fiscal year 2019- 2020 by an estimated amount of between 7 and 10 million euros.
In addition, COVID-19 had no impact on operating activity other than those described above. The group has not identified any major risk of default among its customers and, as such, has not recognized any significant additional impairment for expected losses on its receivables. In addition, COVID-19 did not result in any substantial modification or renegotiation of the contracts entered into by Bonduelle that could have had a material impact on the consolidated financial statements.
The impairment tests were carried out in the context of the health crisis and did not call into question the recoverability of the assets.
With regard to liquidity risk, the group had a portfolio of 349 million euros in unused confirmed lines of credit at June 30. In addition, the group has not made use of the guaranteed financing facilities granted by certain States.
Bonduelle also set up a 300 million euro short-term negotiable debt security program (NEU CP). The inaugural issue was carried out on July 29, 2020 at particularly competitive terms, once again underlining investors' confidence in the group's financial strength.
In addition, and in accordance with the press release dated May 29, 2020, a 20% reduction in the group's usual pay-out ratios will be proposed at the Annual Shareholders' Meeting on December 3, 2020 for the 2019-2020 financial year dividend. This project has received the support of the Supervisory Board. The members of Bonduelle SCA's Supervisory Board and Bonduelle SA's Board of Directors decided to waive 20% of their directors' fees. The Chairman and the members of the Executive Board, for their part, reduced their fixed remuneration by 20% over the lockdown period.
These sums help finance the bonus for employees who have never stopped working in the plant and have proudly committed themselves, setting aside their legitimate concerns, to ensuring access to food for all. The sums collected also make it possible to compensate for the loss of salary of employees with the lowest level of remuneration and to help employees facing difficult medical situations.
The commitment of the group and its teams in the fight against coronavirus does not stop at being a responsible player in the food industry. It can be seen both internally and externally, at all levels, benefiting as many people as possible, on occasions when urgent situations arise or over the longer term when situations call for such assistance.
1.1. 3. Consolidation methods
The consolidated financial statements fully consolidate the financial statements of all subsidiaries controlled either directly or indirectly by the group.
Control is defined and measured in accordance with IFRS 10, based on three criteria: power of decision, exposure to variable returns and the relationship between power and those returns.
Full consolidation allows recognition of all of assets, liabilities and income statement items of the companies concerned, after elimination of all inter-company transactions and earnings, with the portion of income and equity attributable to group companies ("attributable to owners of the company") distinguished from the portion concerning the interests of other shareholders ("Non-controlling interests"). All companies over which Bonduelle does not exercise exclusive control yet still exerts significant influence or joint control are accounted for using the equity method.
All consolidated group companies closed their annual financial statements on June 30, 2020, with the exception of the following companies: Bonduelle Kuban, Coubanskie Conservi, Bonduelle do Brasil, Bonduelle Kazakhstan, Agro Rost and Bonduelle Belgorod. All these companies were consolidated on the basis of their accounting position as at June 30, 2020.
Some companies over which the Bonduelle Group has direct, or indirect, control or over which it exercises significant influence, could not be consolidated because they were not deemed to be material.
More especially with regard to Coopérative France Champignon, in view of the latter's trading relations and by-laws and in accordance with IFRS, the Bonduelle Group does not exercise control over the company. France Champignon has not, therefore, been consolidated and the investment appears under "Other non-current financial assets". Under IFRS 9, these financial assets are measured at fair value through other comprehensive income.
Companies are included within the consolidation scope with effect from the date on which control or significant influence is acquired.
Companies are deconsolidated with effect from the date on which control or significant influence is lost.
All income and expenses related to subsidiaries acquired or disposed of during the fiscal year are recognized in the consolidated income statement with effect from the acquisition date or until disposal.
All transactions between consolidated companies and intercompany income (including dividends) are eliminated.
1.1. 4. Segment reporting
Segment data is reported on the basis of the operating segments used for internal reporting purposes.
The two operating segments are: Europe Zone and Non-Europe Zone.
The Europe Zone covers the following geographical areas: France, Germany, Italy and the Iberian Peninsula which form Southern Europe, Northern Europe and Central Europe.
The Non-Europe Zone covers Eastern Europe, Asia, the Mercosur, North America and Export markets.
The primary indicators published are those used by the group's Executive Management. Revenue, operating income and non-current assets are presented by geographical region. Revenue is also presented by operating segment.
1.1. 5. Translation of transactions denominated in foreign currencies and the financial statements of foreign companies
Translation of transactions denominated in foreign currencies
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Transactions denominated in foreign currencies are valued using the exchange rates applicable on the transaction dates. All receivables and liabilities denominated in foreign currencies recognized in the balance sheet at the end of the period are valued at the closing rates. All foreign exchange gains and losses generated by the translation of transactions denominated in foreign currencies are included under the "financial income" and "financial expenses" headings of the income statement, except for those on borrowings denominated in foreign currencies or other instruments used to hedge long-term equity investments in that same currency, which are included on the line "Accumulated translation adjustments" of consolidated shareholders' equity.
Translation of the financial statements of foreign companies
The balance sheets of companies with a functional currency other than the euro are translated into euros at the official rate at the end of the fiscal period. In each income statement, income and expenses must be translated at the exchange rate at the date of the transactions. For practical reasons, the yearly arithmetic average exchange rate is used to convert income and expense items. However, if exchange rates record significant fluctuations, a calculation method other than the yearly arithmetic average may be used, in line with the seasonality of the business.
The exchange differences resulting from the application of these various foreign exchange rates are included on the line "Accumulated translation adjustments" in the consolidated statement of changes in equity until such time as the foreign holdings to which they pertain are sold or liquidated.
1.1. 6. Business combinations
All business combinations have been recognized using the acquisition method since July 1, 2009 in accordance with standard IFRS 3 (revised) (Business Combinations), and according to IFRS 3 for acquisitions made before this date.
According to this method, the identifiable assets acquired and liabilities assumed are recognized at their fair value, notwithstanding the exceptions specified in IFRS 3R.
For all combinations formed after July 1, 2009, the extra costs associated with the acquisition are recognized in expenses.
Similarly, from July 1, 2009, any non-controlling interest in the acquiree (minority interest) can either be measured at the non-controlling interest's proportionate share of the fair value of the acquiree's identifiable assets acquired and liabilities assumed (IFRS 3 2004), or at its fair value (referred to as the full goodwill method). This option is available on a transaction-by-transaction basis.
The difference between the cost of acquisition of the shares and the fair value of the acquired share of identifiable assets and liabilities on the acquisition date is recognized in goodwill.
If the cost of an acquisition is less than the fair value of the net assets of the acquiree, the negative goodwill (badwill) is recognized directly in profit and loss.
The goodwill analysis is finalized during the assessment period, i.e. 12 months from the takeover date.
NOTE 1.2 ACCOUNTING PRINCIPLES
The consolidated financial statements at June 30, 2020 are presented in thousands of euros, and reflect the financial position of the Company and its subsidiaries (hereafter referred to as "the group").
They have been prepared on the basis of historical costs, with the exception of the assets and liabilities discussed below, which are recognized at fair value.
1.2. 1. Intangible assets
Goodwill
When shares are acquired in companies that are either fully consolidated or accounted for using the equity method, the cost of acquiring the shares is allocated to the assets, liabilities and contingent liabilities acquired measured at their fair value. Any positive difference between the acquisition cost and the group's share in the fair value of the assets, liabilities and contingent liabilities acquired represents goodwill. These differences are presented on the asset side of the consolidated balance sheet under "Goodwill" for fully-consolidated companies and under "Investments in associates" for companies accounted for using the equity method.
Goodwill relating to foreign companies is recognized in the functional currency of the Company acquired.
Negative goodwill (badwill) is immediately recognized in the income statement as non-recurring items.
Other intangible assets
All separately identifiable brands acquired whose useful life is considered to be indefinite are recognized in the consolidated balance sheet under the heading "Other intangible assets".
Licenses, patents and any other intangible assets acquired are recognized at their acquisition cost under "Other intangible assets" in the consolidated balance sheet. They are amortized on a straight-line basis in accordance with their projected useful life.
All development costs must be capitalized as intangible assets when the Company can prove that they will generate future economic benefits and their costs can be identified.
Development costs for software used within the group are carried as assets in the balance sheet when it is probable that these expenses will generate future economic benefits. These costs are amortized on a straight-line basis over the expected useful life of the software, which may be between one and five years. All other software acquisition and development costs are immediately recognized as expenses.
1.2. 2. Property, plant and equipment
Property, plant and equipment are recorded on the balance sheet at their cost less accumulated depreciation and impairment. The gross value of property, plant and equipment corresponds to their purchase or production cost. It is never remeasured. Purchase or production costs include, where applicable, all costs related to the dismantling or refurbishing of production sites.
Given the nature of our investments, borrowing costs are not included in the cost of property, plant and equipment.
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Until June 30, 2019, non-current assets held through finance leases were recognized as assets on the balance sheet at the discounted value of the future minimum payments or at market value, if lower, when the contract transferred to the group, in substance, most of the risks related to the ownership of the asset. The level of risk transferred is assessed by analyzing the terms of the contract. The financial liability arising from the acquisition of the asset is recorded in the consolidated balance sheet.
Depreciation is calculated on a straight-line basis based on purchase cost, less any residual value, from the date on which the asset is available for use. With the exception of certain special cases, residual values are zero.
Useful lives are reviewed periodically, particularly in the case of decisions to move production sites.
- Buildings: 10 to 40 years.
- Plant & equipment, office equipment: 5 to 15 years.
- Other fixed assets: 3 to 10 years.
Where circumstances or events indicate that the value of a fixed asset may have declined, the group examines the recoverable amount of the asset (or group of assets to which it belongs).
The recoverable amount is the higher of the asset's fair value less disposal costs and its value in use. Value in use is estimated by discounting the expected future cash flows of the asset (or group of assets to which it belongs) within the conditions of use planned by the group. Impairment is recognized when the recoverable amount of a fixed asset falls below its net carrying amount.
1.2. 3. Impairment of fixed assets
In accordance with IAS 36 "Impairment of Assets", the recoverable amount of property, plant and equipment and intangible assets is tested for impairment whenever there is an indication of impairment and at least once a year for assets with an indefinite useful life, which are essentially goodwill and brands. Indications of impairment include a significant decline in business volumes, a deterioration in expected long-term profitability, a change in reputation or changes in regulations that adversely affect the business.
The value of the fixed assets of each cash-generating unit (CGU), including in particular goodwill, intangible assets, property, plant and equipment and, since this fiscal year, rights of use net of lease liabilities (IFRS 16), is subject to impairment testing at the time of the annual financial statements and whenever events and circumstances indicate that a loss of value is likely to have occurred.
An impairment loss is recognized when the recoverable amount of a CGU becomes less than its net carrying amount.
Any impairment loss is recorded first in goodwill allocated to the Cash Generating Unit (CGU), and then as a reduction of the net carrying amount of each asset within the CGU.
The recoverable amount of goodwill, which is used to calculate any impairment to be recognized in the financial statements, is the value-in-use estimated on the basis of the present value of future cash flows, from which lease payments for rights of use are now excluded.
If this value-in-use does not cover the assets' carrying amount, the recoverable amount used (if higher) is their fair value less selling costs.
Cash Generating Units are combinations of subsidiaries that belong to the same business segment and that generate cash flows that are clearly distinct from those generated by other CGUs. The cash flows used to calculate values in use are taken from the CGUs' five- year strategic plans.
A 1% growth rate is used to extrapolate the predicted cash flows beyond the five-year period included in the strategic plans.
These cash flows are discounted on the basis of a weighted average cost of capital (WACC = 6.3%) calculated using the market data available for Bonduelle and its business segments.
The WACC is calculated based on a market-based debt of 25% of long-term equity and a risk-free rate of 0.5%.
The group uses the following operating segments to monitor its CGUs for each operating segment: Europe Zone and Non-Europe Zone.
For the Europe Zone:
- the canned and frozen food segment;
-
the ready-to-use fresh vegetables segment. For the Non-Europe Zone:
- the canned and frozen food segment in North and South America; - the canned and frozen food segment in Eastern Europe;
- the ready-to-use fresh food segment in North America.
The fair value less all related selling costs corresponds to the amount that could be obtained by selling the asset (or group of assets) under arm's length conditions, less all costs related directly to the disposal of the asset(s).
1.2. 4. Financial assets
IFRS 9 requires financial assets to be recognized in one of the following three categories:
- at amortized cost;
- at fair value through other comprehensive income;
- at fair value through profit or loss.
Financial assets are classified and measured on the basis of two criteria: the entity's business model (collection of contractual cash flows or monetization by disposal) for managing financial assets and the contractual cash flow characteristics of the financial asset.
Financial assets at fair value through profit or loss
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These consist of financial assets held by the group with a view to generating a short-term gain, or any financial assets voluntarily classified in this category. They are measured at their fair value, and all changes are recognized in the income statement. Classified under cash equivalents within the group's current assets, these financial instruments include, where applicable, units or shares in money market funds and derivative assets.
Loans
Loans are recognized at their amortized cost using the effective interest rate method.
Trade and related receivables
Trade receivables
Trade receivables are recognized in the balance sheet at amortized cost.
As part of its financing policy, the group may have recourse to trade receivable securitization programs. Such securitizations are without recourse. The risk is transferred, in full, to the institution purchasing the receivable. As a result, these are no longer recorded as assets on the balance sheet. The group does not retain any ongoing involvement in the derecognized assets.
Impairment allowance
The impairment allowance mainly relates to disputes over which Bonduelle is in discussion with customers. The impairment allowance for expected credit losses is recognized at an amount equal to expected losses over the life of the receivable.
Loans to subsidiaries and affiliates
Loans to subsidiaries and affiliates are shown as financial assets and are recognized at amortized cost.
Other non-consolidated investments
Other non-consolidated investments are recognized in the consolidated balance sheet at fair value. Changes to fair value such as losses or gains on disposal are recognized in the consolidated statement of changes in equity under other comprehensive income and are not recycled to profit or loss.
Other non-current financial assets
Other non-current financial assets primarily comprise security deposits required under certain countries' tax regulations and funds covering post-employment benefit schemes. The assets are recognized at amortized cost.
1.2. 5. Financial liabilities
Financial liabilities include:
- bond issues;
- accrued interest not yet due;
- outstanding finance leases (until June 30, 2019);
- borrowings and bank lines;
- derivative liabilities.
Financial liabilities are measured and recognized at their amortized cost using the effective interest rate method. They are recognized at the settlement date.
In accordance with IFRS 9, which amended IAS 39 on accounting policies for fair value hedging, bonds, which were swapped at the time they were issued, were marked to market. Changes in the fair value of the debt and the associated derivatives are recognized through profit or loss for the period.
See note 1.1.1 for details of lease liabilities.
1.2. 6. Derivative instruments
The group uses over-the-counter derivatives to manage exposure to foreign exchange and interest rate risks. Group policy excludes being engaged in speculative transactions on the financial markets.
Derivatives are recognized in the consolidated balance sheet at fair value:
- derivatives used to manage net debt and to hedge net investment in foreign operations are recognized as derivative assets or liabilities;
- operational currency derivatives are recognized under derivative assets or liabilities:
- if the derivative is designated as a fair value hedge for assets or liabilities recognized in the consolidated balance sheet, changes in value of both the derivative and the underlying hedged item are recognized through profit or loss for the same period;
- if the derivative is designated as a hedge of a net investment in foreign operations, changes in value are recognized in equity under translation adjustments and are recycled to profit or loss when the asset is derecognized;
- if the derivative is designated as a future cash flow hedge:
- changes in the value of its effective portion are recognized in shareholders' equity under other comprehensive income and are recycled to profit or loss when the hedged item is itself recognized in profit or loss under the same heading;
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- the time value (swap and currency option premium, cross-currency basis swap spreads) is recognized in equity under other comprehensive income and is recognized in profit or loss when the underlying matures, in line with the principles adopted by the group.
Changes in the fair value of the ineffective portion of instruments qualifying as hedges, and changes in the fair value of derivatives that do not qualify for the use of hedge accounting, are recognized directly through profit or loss for the period.
Derivatives are recognized at the transaction date.
IFRS 7.27A distinguishes three levels of methods for determining fair value:
- level 1: quoted prices on an active market for similar instruments with no adjustment;
- level 2: fair value determined based on data observable either directly (such as a price) or indirectly (calculated based on another price), but other than a quoted price on an active market as stated under level 1;
- level 3: fair value determined based on unobservable market data.
The method used by Bonduelle is level 2 in accordance with IFRS 13. Moreover, the market data used in the valuation models includes central bank fixings and data supplied by platforms such as Reuters.
1.2. 7. Inventories
Materials inventories are measured at their weighted average unit cost. Inventories of work-in-progress and finished goods are measured at their production cost, which includes the cost of purchasing the materials used and all direct and indirect production costs (including fixed production costs).
Borrowing costs are not included in the inventory cost. Impairment is deemed necessary in the following cases:
- for raw materials, when the current market price is lower than the inventory value;
- for finished goods and commodities sold as-is, each time the probable net realizable value is lower than the production or purchase cost.
The amount of impairment required to bring inventory to its net realizable value, and all inventory losses, are recognized as expenses for the period during which the impairment or loss occurred. The sum of any recoveries of inventory impairment resulting from an increase in the net realizable value is recognized as a reduction in the amount of inventories recognized in expenses in the period during which the recovery was made.
Intercompany margins are eliminated.
1.2. 8. Treasury shares
Bonduelle's shares held by the Company are recognized as a reduction of consolidated equity, on the line "Treasury shares", for an amount corresponding to their cost. Any funds generated by the sale of treasury shares are applied directly as an increase in Shareholders' equity, and therefore any gains or losses on disposal do not impact net income for the year.
1.2. 9. Cash and cash equivalents
Cash assets consist of all investments with original maturities equal to or less than three months and that can be disposed of immediately. These investments are measured at their market value.
The elements that make up cash and cash equivalents are cash in bank current accounts and potential units or shares in short-term money market funds or redeemable medium-term notes, of which the risk of a change in value is deemed negligible.
1.2. 10. Investment grants
Investment grants appear in the balance sheet under "Other non-current liabilities". These are listed under "Other operating income" in the income statement and are recognized over the same period as the amortization of the fixed assets that they have made possible to acquire.
1.2. 11. Taxes
Income tax expense corresponds to the current tax payable by each consolidated tax entity, adjusted for deferred taxes.
In France, Bonduelle SCA is the company that heads the tax consolidation group that includes Bonduelle SA, Bonduelle Europe Long Life SAS, Bonduelle Development SAS, Champiloire SAS, Bonduelle Frais Traiteur SAS, Bonduelle Frais France SAS, Bonduelle Traiteur International SAS, Champignonnières des Roches SAS, Champignonnières de la Vienne SAS, Euromycel SAS, MOD Bond SAS (formerly Coviju2 S AS), Coviju3 SAS and Coviju4 SAS.
All current taxes in respect of the period are classified in current liabilities insofar as they have not been settled. Any overpayments of income taxes are classified among balance sheet assets as current receivables.
Deferred taxes are recognized on temporary differences between the carrying amounts of assets and liabilities and their value for tax purposes, with the exception of goodwill. Under the liability method, deferred taxes are calculated on the basis of the income tax rate expected for the fiscal year during which the asset will be realized or the liability settled and are classified among non-current assets and liabilities. Impacts of changes in tax rates from one year to the next are recognized in the net income of the fiscal year during which the change is recognized. Deferred taxes pertaining to items recognized directly in shareholders' equity are also recognized in shareholders' equity.
Total deferred tax assets resulting from temporary differences and tax loss and credit carryforwards must not exceed the estimated value of the tax that may be recovered. The latter is assessed at the end of each fiscal year, based on earnings forecasts for the tax entities concerned. Deferred tax assets and liabilities are not discounted.
All deferred taxes are recognized through profit or loss on the income statement, except those generated by items that are allocated directly to equity. In this case, the deferred taxes are also allocated to equity. This is the case in particular for deferred taxes on brands, when the expected tax rate has just been modified.
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1.2. 12. Retirement, termination and welfare benefit commitments
The group provides its employees with either defined contribution or defined benefit plans.
The group's main obligations under its defined benefit programs consist of retirement benefits and long service awards in France, retirements plans in Germany and termination benefits in Italy.
Breakdown of the various plans:
France | Germany | Italy | |
Termination benefits and | Retirement plans | Termination plans | |
Type of plan | long-service awards | ||
Discount rate | 0.90% | 0.90% | 0.90% |
Return on plan assets | 0.90% | N/A | N/A |
Future salary increase | 1.95% | 1.75% | N/A |
Retirement age | 63 years | 65 years | 62 years |
Apart from the US work-related accident compensation scheme (worker's compensation) described in Section 1.2.13, the group does not have any obligations for medical benefits.
The same discount rate (0.90%) is used to calculate Bonduelle's obligations under the various plans. It was determined based on AA- rated bond yields of private issuers in the euro zone. The rate of salary inflation presented is an average rate, calculated specifically for each plan.
In accordance with IAS 19, "Employee Benefits", the projected unit credit method is used to calculate pension and other post-retirement benefits under the defined benefit plans, in particular using assumptions about salary inflation, employee turnover, retirement age and life expectancy.
The corresponding actuarial liabilities are recognized either as contributions paid to insurance companies or in the form of provisions.
Under the revised IAS 19, the Bonduelle Group recognizes the actuarial gains and losses generated during the year directly to equity.
Actuarial gains and losses are generated by inter-period changes in the actuarial assumptions used to calculate the value of the liabilities and the assets, and by experience differences corresponding to changes to the database of individual records.
The lines "Impact of discounting" and "Projected return on plan assets" are recognized in financial income or expense.
Under defined contribution plans, the group's only obligation is to pay the required premiums. Said premiums are recognized in the income statement for the period.
1.2. 13. Other non-current and current provisions
Provisions are established for clearly identifiable risks and expenses whose timing or amount is uncertain, when an obligation to a third party actually exists and it is certain or probable that this obligation will result in an outflow of resources without receiving at least equivalent consideration.
In the case of restructuring, an obligation is recognized once its implementation has begun or a detailed plan has been drawn up that has, to a sufficiently clear extent, created a well-founded expectation on the part of the persons in question that the Company will implement the restructuring.
With regard to US companies with workers' compensation programs, compensation claims made and not yet settled on the reporting date, whether carried forward or not, are covered by provisions determined on the basis of the estimated cost of settlement and related processing costs. Where there is enough historical group or market data on claims made and settled, the Executive Management of such companies, with the help of external actuaries, estimates the risks covered by such companies for claims not yet reported, using the actuarial cost method for claims incurred but not reported (IBNR - Incurred But Not Reported). Such provisions are recognized as provisions for employee-related risks and expenses in the Bonduelle Group financial statements and are remeasured every year.
1.2. 14. Revenue
Revenue is derived mainly from sales of finished products. It is recognized in profit or loss when the customer actually obtains control of the product, when it can direct the use and obtain substantially all the remaining benefits from it.
Revenue is recognized net of any discounts or rebates accorded to customers and any costs related to trade agreements, referencing agreements, and/or concerning occasional promotional campaigns invoiced by distributors as well as any penalties that may be incurred by Bonduelle. These amounts are measured when the revenue is recognized, on the basis of agreements and commitments with the customers in question.
Revenue may also include transport services supplied by Bonduelle to its customers. Revenue is then recognized when the service is provided.
1.2. 15. Other current operating income and expenses
This item primarily comprises grants, income from asset disposals, sales not classed as revenue (particularly sales to partners) as well as income associated with adjustments or compensation received.
1.2. 16. Non-recurring items
Non-recurring items comprise significant items that cannot be considered as inherent to the group's operational activity due to their nature and non-habitual character. They include mainly badwill, impairment of intangible assets (including goodwill) from consolidated shareholdings, restructuring and reorganization costs, acquisition costs, insurance deductibles and costs related to non-covered claims, and financial losses arising from fraud or fines, as well as the impacts of changes in estimates.
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1.2. 17. Share-based payments
Share purchase options and free shares granted to employees are measured at their fair value on the allocation date. The fair value is calculated using the Black & Scholes option pricing model for stock options and the discounting of share value adjusted for dividends for the free share allocation plans. The fair value of free shares granted is also calculated on the basis of presence and performance requirements established by the Executive Management. This value is recognized in the income statement for the period during which employee's exercise rights become vested, with the offsetting entry consisting of an equivalent increase in Shareholders' equity. All expenses recognized in relation to options that expire prior to becoming exercisable are reversed in the income statement for the period during which they expire.
1.2. 18. Basic earnings per share and diluted earnings per share
Basic earnings per share are calculated by dividing group net income by the average number of shares in issue during the fiscal year.
To calculate diluted earnings per share, the weighted average number of shares is adjusted to reflect the impact of the conversion of any convertible instruments into common shares.
1.2. 19. Assets and liabilities held for sale and operations discontinued, sold or in the process of being sold
Assets and liabilities held for sale, i.e. immediately available for disposal and whose disposal is highly probable, are presented on separate lines of the consolidated balance sheet of the period during which the decision to sell was taken. The consolidated balance sheets of previous periods are not restated. Sale is said to be highly probable when a plan for the sale of the asset (or group of assets) held for sale has been drawn up by the Executive Management and an active search for an acquirer has been initiated.
Assets held for sale are measured at the lowest of their carrying amount or fair value, minus any selling costs, and are no longer depreciated.
Furthermore, net income and cash flow from discontinued operations or operations that have been sold or are in the process of being sold are presented respectively on a separate line of the income statement and the statement of cash flows, for all of the periods presented.
1.2. 20. Use of estimates
As part of the normal preparation of the consolidated financial statements, the calculation of certain financial data requires the use of assumptions, estimates and assessments. This is especially true for the measurement of intangible assets, deferred taxes on tax loss carryforwards and the calculation of the amount of provisions for risks and charges or provisions for employee benefit and sales commitments. These assumptions, estimates and assessments are based on information and positions existing at the date on which the financial statements were prepared, which may prove, after the fact, to be different from the actual figures.
1.2. 21. Reclassification
The presentation of certain items in the financial statements pertaining to prior years may have been modified to make it compliant with the accounting principles adopted for the most recent period presented. No significant reclassifications were made during the fiscal year.
1.2. 22. Alternative performance indicators
In its financial reporting, the group presents performance indicators not defined by accounting standards. The main performance indicators are as follows:
- like for like basis: at constant currency exchange rate and scope of consolidation basis. Revenue in foreign currency over the current period is translated into the rate of exchange for the comparable period. The impact of business acquisitions (or takeovers) and divestments is restated as follows:
- for businesses acquired (or takeovers) during the current period, revenue generated since the acquisition date is excluded from the organic growth calculation;
- for businesses acquired (or takeovers) during the prior fiscal year, revenue generated during the current period up until the first anniversary date of the acquisition is excluded;
- for businesses divested (or loss of control) during the prior fiscal year, revenue generated in the comparative period of the prior fiscal year until the divestment date is excluded,
- for businesses divested (or loss of control) during the current fiscal year, revenue generated in the period commencing 12 months before the divestment date and up to the reporting date of the comparative period of the prior fiscal year is excluded;
- non-recurringitems: Note 1.2.16;
- net debt: the Company's credit or debit position with regard to third parties at the end of the operating cycle. It corresponds to current and non-current debt adjusted for derivative assets and liabilities, lease liabilities and cash and cash equivalents;
- gearing: gearing is the ratio of net debt (Note 5.6) to total shareholders' equity;
- leverage ratio: the leverage ratio corresponds to the ratio of net debt to REBITDA. It shows the number of years that the Company would need to pay back its debt based on its REBITDA;
- gross cash flows from operating activities: this corresponds to net cash flow generated by operating activities before change in working capital requirement. It corresponds to net income corrected for the share of net income from associates and calculated items (depreciation and amortization and provisions, deferred taxes and other income with no impact on cash
flow);- current operating margin: the current operating margin is the ratio of current operating income to revenue;
- REBITDA (Recurring earnings before interest, taxes, depreciation and amortization): this is current operating income restated for depreciation, amortization and impairment on property, plant and equipment and intangible assets;
- operating income: this corresponds to current operating income adjusted for non-recurring items;
- current operating income: current operating income corresponds to net income before financial expense, income tax and share of net income from associates. The group uses current operating income as its main performance indicator. Current operating income shall be taken before taking into account non-recurring items. These correspond to material items that are unusual, abnormal and infrequent and do not relate to the Company's underlying performance;
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- ROCCE: this ratio measures the profitability of capital investments made by shareholders and funds loaned by banks and other financial partners. It is obtained by dividing current operating income by capital employed, or the sum of shareholders' equity and net debt.
2. Scope of consolidation
NOTE 2.1 CHANGES IN THE SCOPE OF CONSOLIDATION AND ACQUISITIONS OF INDIVIDUAL ASSETS
Change to Soléal's shareholder structure (France)
Established for more than 40 years in South-West of France, Bonduelle, a 48% shareholder of the Soléal company, acquired in July 2019 most of the interests of the Euralis, Maïsadour and Vivadour cooperatives held in the company.
The Soléal company includes 2 sweet corn and vegetable processing plants located in the South-West of France (Labenne and Bordères). Changes in the ownership of Soléal include some sourcing commitments, will strengthen the long term partnership with growers, and increase the competitiveness of the Bonduelle Group.
Soléal was already controlled and fully consolidated by the Bonduelle Group prior to this transaction.
3. Operating data and non-recurring items
NOTE 3.1 SEGMENT REPORTING | |||||
Non-Europe | Total at | ||||
(in thousands of euros) | Europe Zone | Zone | Eliminations | 2019/06/30 | |
Income statement | |||||
Revenue | 1,306,450 | 1,480,073 | (9,402) | 2,777,120 | |
Intercompany sales | (9,402) | 0 | 9,402 | 0 | |
TOTAL REVENUE | 1,297,048 | 1,480,073 | 2,777,120 | ||
Current operating profit | 54,717 | 68,947 | 123,665 | ||
Non-Europe | Total at | ||||
(in thousands of euros) | Europe Zone | Zone | 2019/06/30 | ||
Non-current assets | |||||
France | 321,505 | 0 | 321,505 | ||
United States | 0 | 428,225 | 428,225 | ||
Other | 165,997 | 207,155 | 373,153 | ||
TOTAL NON-CURRENT ASSETS | 487,503 | 635,381 | 1,122,884 | ||
Non-Europe | Total at | ||||
(in thousands of euros) | Europe Zone | Zone | Eliminations | 2020/06/30 | |
Income statement | |||||
Revenue | 1,310,905 | 1,555,332 | (11,362) | 2,854,876 | |
Intercompany sales | (11,362) | 0 | 11,362 | 0 | |
TOTAL REVENUE | 1,299,543 | 1,555,332 | 2,854,876 | ||
Current operating profit | 51,210 | 57,444 | 108,654 | ||
Non-Europe | Total at | ||||
Non-current assets | Europe Zone | Zone | 2020/06/30 | ||
France | 329,300 | 0 | 329,300 | ||
United States | 0 | 486,910 | 486,910 | ||
Other | 170,496 | 217,270 | 387,765 |
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TOTAL NON-CURRENT ASSETS | 499,796 | 704,180 | 1,203,975 | |
3.1. 1. Information by segment | ||||
Total at | ||||
(in thousands of euros) | Canned | Frozen | Fresh | 2019/06/30 |
Revenue - excluding intercompany | 1,023,393 | 657,908 | 1,095,819 | 2,777,120 |
Total at | ||||
(in thousands of euros) | Canned | Frozen | Fresh | 2020/06/30 |
Revenue - excluding intercompany | 1,121,485 | 684,967 | 1,048,423 | 2,854,876 |
3.1. 2. Information by destination geographical area | ||||
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 | ||
United States | 972,764 | 35% | 975,779 | 34% |
France | 636,421 | 23% | 636,366 | 22% |
Canada | 295,899 | 11% | 336,521 | 12% |
Southern Europe | 238,501 | 9% | 230,968 | 8% |
Germany | 219,210 | 8% | 214,423 | 7% |
Eurasia(1) | 169,997 | 6% | 195,360 | 7% |
Northern Europe | 126,988 | 5% | 132,281 | 5% |
Central Europe(2) | 66,489 | 2% | 81,533 | 3% |
Other | 50,851 | 1% | 51,645 | 2% |
TOTAL REVENUE | 2,777,120 | 100% | 2,854,876 | 100% |
- Russia and other CIS countries.
- Eastern European countries that have joined the European Union
NOTE 3.2 PURCHASES AND EXTERNAL CHARGES | ||||
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 | ||
Purchases of goods and other supplies | (1,464,154) | (1,466,102) | ||
Production in inventory | 14,469 | 6,792 | ||
Changes in inventories of goods and other supplies | 31,426 | 15,214 | ||
Other external charges | (596,126) | (581,097) | ||
TOTAL PURCHASES AND EXTERNAL CHARGES | (2,014,385) | (2,025,193) | ||
NOTE 3.3 OTHER OPERATING INCOME AND EXPENSES | ||||
At | ||||
(in thousands of euros) | Notes | At 2019/06/30 | 2020/06/30 | |
Operating services | 3,745 | 3,786 | ||
Reversals of provisions | 9.1 | 2,989 | 2,098 | |
Reversal of current asset impairment | 3.5 & 3.6 | 2,474 | 2,225 | |
Grants | 3,822 | 4,042 | ||
Income from asset disposals | 1,690 | 806 | ||
Other operating income* | 29,085 | 13,832 | ||
TOTAL OTHER OPERATING INCOME | 43,806 | 26,790 |
- This item mainly comprises sales to partners not classed as revenue, insurance compensation and settlement of accounts with third parties.
At | |||
(in thousands of euros) | Notes | At 2019/06/30 | 2020/06/30 |
Taxes and duties | (23,481) | (25,743) | |
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Provisions | 9.1 | (2,964) | (4,907) |
Impairment of current assets | 3.5 & 3.6 | (6,174) | (6,862) |
Other operating expenses | (21) | 150 | |
TOTAL OTHER OPERATING EXPENSES | (32,641) | (37,362) | |
NOTE 3.4 NON-RECURRING ITEMS | |||
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 | |
Reorganization and restructuring costs | (2,973) | (2,308) | |
Insurance deductibles and costs relating to claims | (4,517) | (4,215) | |
Acquisition costs and fees | (360) | 0 | |
Other (net balance) | 0 | (243) | |
TOTAL NON-RECURRING ITEMS | (7,851) | (6,766) |
NOTE 3.5 INVENTORIES AND WORK-IN-PROGRESS | |||||||||
Net | Net | ||||||||
carrying | carrying | ||||||||
amounts | amounts | ||||||||
Gross | At | Gross | At | ||||||
(in thousands of euros) | amounts | Provisions | 2019/06/30 | amounts | Provisions | 2020/06/30 | |||
Materials and packaging | 181,159 | (1,996) | 179,163 | 185,678 | (1,989) | 183,689 | |||
Work-in-progress and finished goods | 468,496 | (20,233) | 448,263 | 467,586 | (24,147) | 443,439 | |||
TOTAL INVENTORIES AND WORK- | |||||||||
IN-PROGRESS | 649,655 | (22,229) | 627,426 | 653,264 | (26,136) | 627,128 | |||
Detail of provisions for impairment of inventories and work-in-progress | |||||||||
At | At | ||||||||
(in thousands of euros) | 2019/06/30 | 2020/06/30 | |||||||
Materials and packaging | |||||||||
Opening balance | (1,710) | (1,996) | |||||||
Additions | (614) | (760) | |||||||
Reversals | 343 | 731 | |||||||
Translation adjustments and other | (15) | 37 | |||||||
CLOSING BALANCE | (1,996) | (1,987) | |||||||
Work-in-progress and finished goods | |||||||||
Opening balance | (16,700) | (20,233) | |||||||
Additions | (4,910) | (5,216) | |||||||
Reversals | 1,703 | 514 | |||||||
Translation adjustments and other | (326) | 788 | |||||||
CLOSING BALANCE | (20,233) | (24,147) |
Bonduelle- 17
NOTE 3.6 TRADE AND OTHER RECEIVABLES
Analysis of trade and other receivables:
Net carrying | Net carrying | ||||||
Gross | amounts At | Gross | amounts At | ||||
(in thousands of euros) | amounts | Provisions | 2019/06/30 | amounts | Provisions | 2020/06/30 | |
Customers | 260,986 | (2,041) | 258,945 | 247,492 | (1,850) | 245,642 | |
Tax and social security receivables | 41,618 | 0 | 41,618 | 40,542 | 0 | 40,542 | |
Other receivables | 24,005 | (405) | 23,600 | 24,921 | (30) | 24,891 | |
TOTAL TRADE AND OTHER | |||||||
RECEIVABLES | 326,609 | (2,446) | 324,163 | 312,956 | (1,880) | 311,075 | |
Change in impairment of trade and other receivables | |||||||
(in thousands of euros) | 2019/30/06 | 2020/30/06 | |||||
Customers | |||||||
Opening balance | (1,652) | (2,041) | |||||
Additions | (636) | (885) | |||||
Reversals | 279 | 969 | |||||
Translation adjustments and other(1) | (32) | 107 | |||||
CLOSING BALANCE | (2,041) | (1,850) | |||||
Other receivables | |||||||
Opening balance | (527) | (405) | |||||
Additions | (14) | (1) | |||||
Reversals | 150 | 375 | |||||
Translation adjustments and other(1) | (15) | 2 | |||||
CLOSING BALANCE | (405) | (30) |
- Reclassifications from account to account
Trade and related receivables by maturity
(in thousands of euros) | 2019/30/06 | 2020/30/06 | |
Not yet due | 217,871 | 210,890 | |
Overdue: | |||
• less than 30 days | 35,647 | 25,573 | |
• between 30 and 90 days | 2,749 | 5,080 | |
• more than 90 days | 2,678 | 4,099 | |
TOTAL TRADE AND RELATED RECEIVABLES | 258,945 | 245,642 | |
NOTE 3.7 TRADE AND OTHER PAYABLES | |||
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 | |
Trade payables | 436,858 | 435,077 | |
Amounts payable for acquisition of assets | 15,483 | 15,791 | |
Tax and social security payables | 114,004 | 126,072 | |
Other payables | 41,110 | 51,447 | |
TOTAL TRADE AND OTHER PAYABLES | 607,456 | 628,387 |
Bonduelle- 18
4. Expenses, headcount and employee benefits
NOTE 4.1 REMUNERATION AND HEADCOUNT
(in thousands of euros and number of employees) | At 2019/06/30 | At 2020/06/30 |
Employee expense for consolidated companies | (560,814) | (598,242) |
Average annual workforce | 14,589 | 14,617 |
Employees with long-term employment contracts | 10,655 | 10,861 |
NOTE 4.2 EMPLOYEE BENEFIT OBLIGATIONS
4.2. 1. Defined contribution plans
The group is involved in setting up pension plans for its personnel in accordance with the laws and practices of the countries in which group companies operate. Commitments correspond to contributions payable. These stand at 31,370 thousand euros at June 30, 2020, compared with 31,388 thousand euros at June 30, 2019.
4.2. 2. Defined benefit plans
In addition, the group is mainly responsible for contractual commitments to pay severance and termination benefits. Commitments are measured using the Projected Credit Unit method.
A description of the plans can be found in Note 1.2 12.
Changes to the financial position of defined benefit plans are as follows: | ||
(in thousands of euros) | 2018-2019 | 2019-2020 |
Income statement: Retirement expense | ||
Cost of services rendered during the year | 1,316 | 1,461 |
Impact of discounting | 436 | 333 |
Projected return on plan assets | (45) | (17) |
(Gains)/Losses from plan wind up | 0 | 0 |
RETIREMENT (INCOME) EXPENSE RECOGNIZED | 1,707 | 1,777 |
(in thousands of euros) | 2018-2019 | 2019-2020 |
Change in the present value of the obligation | ||
Present value of DBO(1) at July 1 | 26,430 | 27,521 |
Cost of services rendered during the year | 1,316 | 1,461 |
Impact of discounting | 436 | 333 |
Employee contributions | 0 | 0 |
Plan reduction and amendment | 0 | 0 |
Currency effect | 9 | (18) |
Benefits paid | (2,149) | (1,652) |
Actuarial (gains)/losses related to changes in demographic assumptions | 9 | 0 |
Actuarial (gains)/losses related to changes in actuarial assumptions | 1,634 | 1,511 |
Actuarial (gains)/losses related to experience differences | (164) | 87 |
PRESENT VALUE OF DBO(1) AT JUNE 30 | 27,521 | 29,243 |
(1) DBO: Defined benefit obligation.
Bonduelle- 19
(in thousands of euros) | 2018-2019 | 2019-2020 |
Change in fair value of plan assets | ||
Fair value of plan assets at July 1 | 2,935 | 1,445 |
Projected return on plan assets | 45 | 17 |
Employer contributions | 523 | 1,334 |
Employee contributions | 0 | 0 |
Plan wind up | 0 | 0 |
Benefits paid | (2,054) | (1,577) |
Actuarial (gains)/losses related to experience differences | (4) | 17 |
FAIR VALUE OF PLAN ASSETS AT JUNE 30 | 1,445 | 1,236 |
(in thousands of euros) | 2018-2019 | 2019-2020 |
Reconciliation with amount recognized in balance sheet | ||
Net financial position: surplus/(deficit) | (26,076) | (28,007) |
Impact of the limiting of surpluses | 0 | 0 |
(Provision) at June 30 | (26,076) | (28,007) |
NET ASSETS AT JUNE 30 | 0 | 0 |
(in thousands of euros) | 2018-2019 | 2019-2020 |
Actuarial gains and losses | ||
Actuarial (gains)/losses generated at July 1 | 5,279 | 6,763 |
Actuarial (gains)/losses generated between July 1 and June 30 | 1,483 | 1,581 |
(in thousands of euros) | 2018-2019 | 2019-2020 |
Change in carrying amounts recognized during the year | ||
Net opening (liability) asset | (23,495) | (26,076) |
Retirement (expense) income | (1,707) | (1,777) |
Benefits paid by the employer | 618 | 1,409 |
Currency effect | (9) | 18 |
Actuarial differences recognized in equity | (1,483) | (1,581) |
NET CLOSING (LIABILITY) ASSET | (26,076) | (28,007) |
For the actuarial assumptions at year-end, refer to Note 1.2.12.
The assets managed by financial institutions to cover the group's termination benefit obligations are matched to general assets.
At June 30, 2020, the sensitivity of provisions for retirement benefits to the discount rate was as follows: a 0.50 point rise in the discount rate would have reduced the group's liability by 1,853 thousand euros. Conversely, a 0.50 point drop would have increased the group's liability by 2,034 thousand euros.
NOTE 4.3 SHARE-BASED PAYMENTS
The Bonduelle SCA General Management is authorized to grant Bonduelle stock options and free shares to certain officers and employees of the group.
Bonduelle- 20
Characteristics of the free share allocation plans (AGA) | (1) | ||||||||
Plan 5 | Plan 7 | Plan 8 | Plan 9 | Plan 10 | Plan 11 | Plan 12 | |||
Date of Shareholders' Meeting: | 12/03/2015 | 12/03/2015 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | ||
Date of the General Management decision | 09/16/2016 | 10/06/2017 | 12/07/2018 | 12/07/2018 | 12/07/2018 | 12/07/2018 | 12/07/2018 | ||
Initial number of shares allocated | 76,801 | 47,582 | 72,066 | 7,616 | 26,429 | 24,141 | 24,373 | ||
• Of which number of shares granted to Guillaume Debrosse, | |||||||||
Permanent Representative of Pierre et Benoit Bonduelle SAS, | N/A | N/A | 11,423 | 0 | 0 | 0 | 0 | ||
General Manager of Bonduelle SCA | |||||||||
• Of which number of shares granted to the entire Executive | 76,801 | 47,582 | 72,066 | 0 | 26,429 | 24,141 | 24,373 | ||
Committee | (2) | ||||||||
• Of which other | 0 | 0 | 0 | 7,616 | 0 | 0 | 0 |
Total number of free shares allocated | 76,801 | 47,582 | 72,066 | 7,616 | 26,429 | 24,141 | 24,373 | |
Total number of free shares canceled or expired | 63,196 | 0 | ||||||
Effective allocation date | 09/16/2019 | 10/06/2020 | 11/05/2021 | 12/07/2019 | 12/31/2020 | 02/28/2021 | 03/31/2021 | |
Date from which shares can be sold | 09/17/2019 | 10/06/2020 | 11/05/2021 | 12/07/2020 | 12/31/2020 | 02/28/2021 | 03/31/2021 | |
Number of shares actually awarded at June 30, 2020 | 13,605 | 0 | 0 | 7,616 | 0 | 0 | 0 | |
Plan 13 | Plan 14 | Plan 15 | Plan 16 | Plan 17 | Plan 18 | Plan 19 | ||
Date of Shareholders' Meeting: | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | |
Date of General Management decision | 12/07/2018 | 02/11/2019 | 12/12/2019 | 12/12/2019 | 12/12/2019 | 12/12/2019 | 12/12/2019 | |
Initial number of shares allocated | 18,619 | 23,024 | 21,231 | 21,230 | 21,230 | 35,535 | 3,581 | |
• Of which number of shares granted to Guillaume Debrosse, | ||||||||
Permanent Representative of Pierre et Benoit Bonduelle SAS, | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
General Manager of Bonduelle SCA | ||||||||
• Of which number of shares granted to the entire Executive | 18,619 | 0 | 0 | 0 | 0 | 9,275 | 0 | |
Committee | (2) | |||||||
• Of which other | 0 | 23,024 | 21,231 | 21,230 | 21,230 | 26,260 | 3,581 | |
Total number of free shares allocated | 18,619 | 23,024 | 21,231 | 21,230 | 21,230 | 35,535 | 3,581 | |
Total number of free shares canceled or expired | ||||||||
Effective allocation date | 12/31/2021 | 02/11/2022 | 12/13/2020 | 12/13/2021 | 12/13/2022 | 12/13/2022 | 12/13/2022 | |
Date from which shares can be sold | 12/31/2021 | 02/11/2022 | 12/13/2021 | 12/13/2021 | 12/13/2022 | 12/14/2022 | 12/14/2022 | |
Number of shares actually awarded at June 30, 2020 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Plan 20 | Plan 21 | Plan 22 | Plan 23 | Plan 24 | Plan 25 | Plan 26 | ||
Date of Shareholders' Meeting: | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | 12/06/2018 | |
Date of General Management decision | 12/12/2019 | 12/12/2019 | 12/12/2019 | 12/12/2019 | 12/12/2019 | 12/12/2019 | 12/12/2019 | |
Initial number of shares allocated | 898 | 136,062 | 364 | 3,239 | 1,928 | 2,910 | 16,388 | |
• Of which number of shares granted to Guillaume Debrosse, | ||||||||
Permanent Representative of Pierre et Benoit Bonduelle SAS, | 0 | 18,339 | 0 | 0 | 0 | 0 | 0 | |
General Manager of Bonduelle SCA | ||||||||
• Of which number of shares granted to the entire Executive | 0 | 94,163 | 0 | 0 | 0 | 0 | 12,786 | |
Committee | (2) | |||||||
• Of which other | 898 | 41,899 | 364 | 3,239 | 1,928 | 2,910 | 3,602 | |
Total number of free shares allocated | 898 | 136,062 | 364 | 3,239 | 1,928 | 2,910 | 16,388 | |
Total number of free shares canceled or expired | ||||||||
Effective allocation date | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | |
Date from which shares can be sold | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | 12/13/2022 | |
Number of shares actually awarded at June 30, 2020 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- The free share grant is based on the one hand on a long-term incentive mechanism. Plans based on return on capital employed representing 50% of salary or
fixed compensation at target and contingent on employment on the date of effective allocation. And on the other hand, as part of an end-of-career mechanism for senior executives, based on the execution of succession plans. In accordance with the provisions of the AFEP-MEDEF Code, there are no hedging transactions in favor of corporate officers. - Group Executive Committee up to plan 7, Group Management Committee from plan 8 onwards.
Valuation of stock option and free share allocation plans
As stated in Note 1.2.17, share purchase options and free shares granted to employees are measured at their fair value on the allocation date, based on the Black & Scholes option pricing model for stock options and the discounting of share value adjusted for dividends for the free share allocation plans. The fair value of free shares granted is also calculated on the basis of presence and performance requirements established by the Executive Management.
The expense under IFRS 2 for the period was 2,993 thousand euros.
5. Financing and financial instruments
NOTE 5.1 MANAGEMENT OF FINANCIAL RISKS
The group has established an organization that provides for centralized management of all of its liquidity, currency, interest rate and counterparty credit risks. The Finance Department has assigned the group Finance and Treasury Department responsibility for financial risk management, and provided it with all of the expertise and tools needed to participate in the various financial markets as effectively and safely as possible. The organization and procedures utilized are regularly reviewed by the Internal Audit Department and the Statutory Auditors. At meetings held regularly with the Chief Financial Officer and Head of Finance and Treasury, the group's Executive Management validates, on the basis of a report published monthly, the implementation of previously authorized management strategies.
Bonduelle- 21
In a rapidly changing global economic environment, characterized by market volatility and changes in financial techniques, the role of the group Finance and Treasury Department is to:
- ensure optimum and sufficient financing for the development and growth of the group's operating activities;
- identify, evaluate and hedge all financial risks in close collaboration with the operations teams.
The objective is to minimize, at the lowest possible cost, the impact of financial market fluctuations on the group's income statement, in order to reduce the capital allocation required to manage these financial risks.
The group prohibits the taking of speculative positions.
5.1. 1. Liquidity risk
The group Finance Department is responsible for maintaining sufficient liquidity at all times. It accomplishes this by efficiently managing the group's cash balances and ensuring that the maturity and conditions of the financing obtained are appropriate. In particular, it arranges confirmed lines of credit to maximize the flexibility of the group's financing (see Note 5.6 of the notes to the consolidated financial statements at June 30, 2020).
The Company specifically reviewed its liquidity risk and considers that it is able to meet its future payments.
5.1. 2. Market risks
Currency risk
Risks related to changes in foreign exchange rates
The group publishes its consolidated financial statements in euros, and in 2019(2020,) 44.1% of revenue and 40.8% of current operating income were denominated in euros.
The share of assets, liabilities, sales and earnings denominated in other currencies - essentially the Polish zloty, Hungarian forint, Russian ruble, Brazilian real and US and Canadian dollars - fluctuates continuously. This means that the group is affected by fluctuations in the value of these currencies relative to the euro when they are translated into euros in the consolidated financial statements. For example, when the euro rises against these currencies, it reduces the earnings contribution from those subsidiaries whose financial statements are denominated in these currencies.
All sales and expenses of group subsidiaries are generally expressed in their local currency, with the exception of imports, exports and financial transactions covered by centralized and systematic foreign currency hedges, where the type of exposure means that it can be hedged: Bonduelle therefore believes that its local exposure to currency fluctuations, after hedging, is limited.
The group's international growth strategy contributes to increasing the weight of non euro-denominated activities in revenue, operating profit and consolidated net income.
Hedging policies for currency risk
The group seeks to hedge all risks relating to the activities of its subsidiaries denominated in a currency other than their functional currency and risks relating to the financing of some subsidiaries operating in countries whose functional currency is not the euro; the asset/liability structure of the financing is created by natural matching or by putting financial instruments in place.
The group uses over-the-counter financial instruments only to hedge the financial risks generated by its production and sales activities. All hedges entered into must comply with the objectives and procedures established by the Bonduelle Group's Executive Management. These transactions are centralized within the group Finance and Treasury Department.
The group's policy regarding fluctuations in foreign exchange rates consists of periodically calculating its net exposure to foreign currencies and using financial derivatives to reduce this risk.
The group makes use above all of currency forward contracts, currency swaps and options entered into with highly-rated bank counterparties. Details of the portfolio as well as an analysis of foreign exchange rate sensitivity appear in Notes 5.2 and 5.5 to the consolidated financial statements at June 30, 2020.
Interest rate risk
The interest rate management policy is coordinated, controlled and handled centrally, with the aim of protecting future cash flows and reducing the volatility of finance costs. The group uses various instruments available on the market, especially interest rate options and swaps.
Under IFRS 9, interest rate fluctuations may have an impact on the group's consolidated net income and equity. Details of the portfolio as well as an analysis of interest rate sensitivity appear in Notes 5.2 and 5.5 to the consolidated financial statements at June 30, 2020.
Credit risk
In light of the high credit quality of the group's principal counterparties and the wide dispersion of its customers throughout the world, especially in the mass-market retailing sector, the group considers that it does not have significant exposure to credit risk. Nevertheless, most of this risk is covered by a first-class insurer.
Given the high liquidity of the group's trade and related receivables, the fair value of these assets is considered to be equal to their carrying amount.
Counterparty credit risk
In its dealings in financial assets in general and any cash balances, the group works only with highly-rated bank counterparties. Any cash surpluses are generally managed in short-terminterest-bearing deposits.
Raw materials risk
The Bonduelle Group has always favored the best agricultural lands and the geographical diversification of its sourcing regions when deciding where to locate its production facilities, in order to reduce the climate-related risks inherent to all growing activities.
There is, moreover, no organized market for the agricultural raw materials purchased by the Bonduelle Group. Changes in the prices of agricultural raw materials quoted on a market do, however, have a more or less significant impact on the group's purchase prices,
Bonduelle- 22
depending on the agricultural alternatives available to producers. In order to ensure long-term relationships with its vegetable suppliers, Bonduelle holds annual negotiations with producers' associations well in advance of the harvest, which relate principally to the producer's net margin per hectare. Bonduelle is therefore obliged to adjust its selling prices to reflect the results of its vegetable purchasing negotiations, which vary between sourcing regions.
However, the resilience of the Bonduelle Group's recurring operating profitability demonstrates its overall ability to pass on the increase in raw material costs in its selling prices.
5.1. 3. Equity management
The Bonduelle Group always ensures that its financial structure remains optimal by respecting the balance between its net financial debt and its equity, and by maintaining a consistent dividend policy. This is intended to keep the cost of capital to a minimum, to maximize share price and dividend growth for the shareholders and to maintain sufficient financial flexibility to take advantage of any opportunities that may arise.
Shareholders' equity at June 30, 2020 stood at 709.9 million euros. On the basis of this, General Management will propose a dividend of 0.40 euro per share to the Shareholders' Meeting of December 3, 2020.
NOTE 5.2 FINANCIAL INCOME (EXPENSE)
The group's net financial income (expense) at June 30, 2020 amounted to (25.9) million euros, compared with (22.6) million euros the previous year.
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 | |
Cost of net debt | A | (21,887) | (20,344) |
Cash and cash equivalents | 107 | 311 | |
Interest expense (at effective interest rate) | (21,994) | (20,717) | |
Gains and losses on liabilities covered by fair value | |||
hedges | (7,480) | 149 | |
Gains and losses on fair value hedging derivatives | 7,480 | (87) | |
Other financial income and expenses | B | (750) | (5,514) |
Foreign exchange gain (loss) | (875) | (3,535) | |
Net gain (loss) on derivatives ineligible for hedge | |||
accounting (foreign currency & interest rate risk) | 503 | 748 | |
Other financial income and expenses | (378) | (2,727) | |
FINANCIAL RESULT | A B | (22,637) | (25,858) |
The cost of net financial debt, the main component of financial income (expense), was down from (21.9) million euros at June 30, 2019 to (20.3) million euros at June 30, 2020.
It comprises mainly 20.7 million euros in interest paid at the effective interest rate. Further to the adoption of IFRS 9, the impact of residual ineffectiveness on the debt hedged at fair value, and hedge derivatives recognized at fair value linked to cross-currency basis swap spreads, is recognized in equity and will be recognized in profit or loss when the underlying debt matures, in line with the option offered by IFRS 9 and adopted by the group.
The reduction in the cost of net debt was mainly due to:
- the dilutive effect of the refinancing of the EuroPP by the USPP issued in May 2019;
- amortization of USPP and Term Loan debt instruments;
- a decrease in the interest rates of the currencies in which the group borrows.
The interest rate, calculated on the group's average debt, all currencies combined, and restated to account for IFRS impacts, stood at 2.15%, compared with 2.41% the previous year.
Other financial income and expenses ((5.5) million euros) break down as follows:
- a 2.8 million-euro foreign exchange loss corresponding to gains/losses from foreign exchange hedges on cash flows relating to commercial activities and cash in foreign currencies. Further to the adoption of IFRS 9, the impact of ineffectiveness (time value of options) is recognized in equity and reclassified to profit or loss when the underlying flow matures, in line with the principles adopted by the group;
- a 2.7 million-euro loss in other financial income and expenses, mainly due to interest charges on IFRS 16 lease liabilities for an amount of (2.5) million euros.
As required by IFRS 7, the group performed sensitivity analyses to measure its exposure to material changes in interest and foreign exchange rates.
The scope of the interest rate sensitivity analyses included all financial instruments, both debt and derivatives. The analyses were made assuming a uniform shift of +/- 50 basis points in all yield curve maturities at the reporting date. The market values of the instruments were obtained from the valuation platforms used by the group's Finance and Treasury Department, and market data are populated using real-time information systems (Reuters, etc.).
Analysis of sensitivity to interest rates
(in thousands of euros) | Change in interest rates |
Bonduelle- 23
+50 bps | (50) bps | |||
Impact on | Impact on results | Impact on | Impact on results | |
equity | equity | |||
Interest on debt | 0 | (3,592) | 0 | 3,592 |
Mark-to-market valuation of debt | 0 | 4,334 | 0 | (4,459) |
Payables | 0 | 742 | 0 | (867) |
Financial income from interest rate derivatives | 0 | 1,423 | 0 | (892) |
Mark-to-market valuation of interest rate derivatives | 1,445 | (4,017) | (836) | 4,127 |
Interest rate derivatives | 1,445 | (2,594) | (836) | 3,235 |
TOTAL | 1,445 | (1,852) | (836) | 2 368 |
The same valuation methods used to measure interest rate sensitivity (information systems and valuation platforms, etc.) are used to measure the group's exposure to changes in the currencies it uses for business and financing purposes (USD, HUF, CAD, RUB, PLN,
...). The scope includes all balance sheet liabilities and receivables, those portions of trade-related flows expected to be generated during the period hedged, and all derivative instruments used to hedge foreign currency exposures.
In accordance with IFRS 7 §23, it is specified that, since this consists primarily of hedges of trading flows denominated in foreign currencies, the flows hedged and the associated hedging instruments generally mature in less than one year.
In the case of longer-term assets or liabilities, hedges can extend beyond one year, though they must not exceed the current limit of five years.
For the methods used to prepare the currency fluctuation sensitivity calculations, a variation of +/-5% in exposure to the main currencies has been applied.
Analysis of sensitivity to changes in exchange rates (excluding subsidiaries' net equity)
Exchange rate changes of | ||||
+5% variation in the euro against | (5)% variation in the euro against | |||
the foreign currency | the foreign currency | |||
Impact on | Impact on results | Impact on | Impact on results | |
(in thousands of euros) | equity | equity | ||
HUF/EUR | 35 | 36 | (42) | (127) |
USD/EUR | 56 | (43) | (57) | 27 |
PLN/EUR | 17 | (12) | (17) | 24 |
RUB/EUR | (39) | (336) | 74 | 159 |
USD/CAD | 17 | (78) | (15) | 26 |
TOTAL | 86 | (433) | (58) | 108 |
NOTE 5.3 PRESENTATION OF FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
At 2019/06/30
Financial assets within the scope of | Assets | |||||||||
application of IFRS 9 on financial | excluded | |||||||||
instruments | from the | |||||||||
Fair | scope of | |||||||||
application | ||||||||||
Value | Fair | value | ||||||||
of IFRS 9 | ||||||||||
on the | value through | through | ||||||||
on financial | ||||||||||
balance | Fair | Amortized | Shareholders' | profit or | ||||||
instruments | ||||||||||
(in thousands of euros) | sheet | value | cost | equity | loss | |||||
Non-current assets | ||||||||||
Other non-current financial assets | 38,519 | 38,519 | 5,876 | 16,287 | 16,358 | 0 | ||||
Investments in subsidiaries | 16,061 | 16,061 | 0 | 16,061 | 0 | 0 | ||||
Derivative assets | 16,584 | 16,584 | 0 | 226 | 16,358 | 0 | ||||
Other non-current financial assets | 5,875 | 5,875 | 5,876 | 0 | 0 | 0 | ||||
Other non-current assets | 2,908 | 2,908 | 1,428 | 0 | 0 | 1,480 | ||||
Other non-current receivables | 1,428 | 1,428 | 1,428 | 0 | 0 | 0 | ||||
Prepaid expenses | 1,480 | 1,480 | 0 | 0 | 0 | 1,480 | ||||
Current assets | ||||||||||
Bonduelle- 24 |
Trade & other receivables | 330,012 | 330,012 | 330,012 | 0 | 0 | 0 |
Other current assets | 11,883 | 11,883 | 100 | 0 | 0 | 11,783 |
Non-consolidated loans and | ||||||
receivables | 93 | 93 | 93 | 0 | 0 | 0 |
Prepaid expenses | 11,783 | 11,783 | 0 | 0 | 0 | 11,783 |
Other assets | 7 | 7 | 7 | 0 | 0 | 0 |
Derivative assets | 3,849 | 3,849 | 0 | 334 | 3,515 | 0 |
Marketable securities and other | ||||||
investments | 286 | 286 | 286 | 0 | 0 | 0 |
Cash and cash equivalents | 16,407 | 16,407 | 16,407 | 0 | 0 | 0 |
Financial liabilities within the scope of | Liabilities | |||||||||||||||||
IFRS 9 on financial instruments | ||||||||||||||||||
excluded | ||||||||||||||||||
from the | ||||||||||||||||||
Fair | scope | |||||||||||||||||
Value | Fair | value | of | |||||||||||||||
on the | value through | through | IFRS 9 on | |||||||||||||||
(in thousands of euros) | balance | Fair | Amortized | Shareholders' | profit or | financial | ||||||||||||
sheet | value | cost | equity | loss | instruments | |||||||||||||
Non-current liabilities | ||||||||||||||||||
Financial debts | 564,215 | 564,620 | 540,033 | 2,432 | 22,155 | 0 | ||||||||||||
Debt excluding derivatives | 561,783 | 562,188 | 540,033 | 0 | 22,155 | 0 | ||||||||||||
Derivative liabilities | 2,432 | 2,432 | 0 | 2,432 | 0 | 0 | ||||||||||||
Other non-current liabilities | 29,886 | 29,886 | 19,673 | 0 | 0 | 10,214 | ||||||||||||
Prepaid income and other | 10,214 | 10,214 | 0 | 0 | 0 | 10,214 | ||||||||||||
accrual accounts | ||||||||||||||||||
Miscellaneous debts | 19,673 | 19,673 | 19,673 | 0 | 0 | 0 | ||||||||||||
Current liabilities | ||||||||||||||||||
Trade and other payables | 609,559 | 609,559 | 609,559 | 0 | 0 | 0 | ||||||||||||
Current Financial debts | 127,659 | 127,689 | 123,057 | 439 | 4,192 | 0 | ||||||||||||
Debt excluding derivatives | 126,229 | 126,259 | 123,057 | 0 | 3,201 | 0 | ||||||||||||
Current derivative liabilities | 1,430 | 1,430 | 0 | 439 | 991 | 0 | ||||||||||||
Other current liabilities | 1,887 | 1,887 | 0 | 0 | 0 | 1,887 | ||||||||||||
Prepaid income and other | 1,887 | 1,887 | 0 | 0 | 0 | 1,887 | ||||||||||||
accrual accounts | ||||||||||||||||||
At 2020/06/30 | ||||||||||||||||||
Assets | ||||||||||||||||||
Financial assets within the scope of | ||||||||||||||||||
excluded | ||||||||||||||||||
application of IFRS 9 on financial | ||||||||||||||||||
from the | ||||||||||||||||||
instruments | ||||||||||||||||||
scope of | ||||||||||||||||||
Fair | ||||||||||||||||||
application | ||||||||||||||||||
Value | Fair | value | ||||||||||||||||
of IFRS 9 | ||||||||||||||||||
on the | value through | through | ||||||||||||||||
on financial | ||||||||||||||||||
balance | Fair | Amortized | Shareholders' | profit or | ||||||||||||||
instruments | ||||||||||||||||||
(in thousands of euros) | sheet | value | cost | equity | loss | |||||||||||||
Non-current assets | ||||||||||||||||||
Other non-current financial assets | 30,175 | 30,175 | 4,835 | 10,396 | 14,944 | 0 | ||||||||||||
Investments in subsidiaries | 10,353 | 10,353 | 0 | 10,353 | 0 | 0 | ||||||||||||
Derivative assets | 14,988 | 14,988 | 0 | 43 | 14,944 | 0 | ||||||||||||
Other non-current financial assets | 4,835 | 4,835 | 4,835 | 0 | 0 | 0 | ||||||||||||
Other non-current assets | 2,130 | 2,130 | 1,238 | 0 | 0 | 892 | ||||||||||||
Other non-current receivables | 1,238 | 1,238 | 1,238 | 0 | 0 | 0 | ||||||||||||
Prepaid expenses | 892 | 892 | 0 | 0 | 0 | 892 |
Bonduelle- 25
Current assets | ||||||
Trade & other receivables | 311,075 | 311,075 | 311,075 | 0 | 0 | 0 |
Other current assets | 8,336 | 8,336 | 42 | 0 | 0 | 8,294 |
Non-consolidated loans and | ||||||
receivables | 33 | 33 | 33 | 0 | 0 | 0 |
Prepaid expenses | 8,294 | 8,294 | 0 | 0 | 0 | 8,294 |
Other assets | 9 | 9 | 9 | 0 | 0 | 0 |
Derivative assets | 6,723 | 6,723 | 0 | 728 | 5,994 | 0 |
Marketable securities and other | ||||||
investments | 178 | 178 | 178 | 0 | 0 | 0 |
Cash and cash equivalents | 6,460 | 6,460 | 6,460 | 0 | 0 | 0 |
Financial liabilities within the scope of | Liabilities | |||||
IFRS 9 on financial instruments | ||||||
excluded | ||||||
from the | ||||||
Fair | scope | |||||
Value | Fair | value | of | |||
on the | value through | through | IFRS 9 on | |||
balance | Fair | Amortized | Shareholders' | profit or | financial | |
(in thousands of euros) | sheet | value | cost | equity | loss | instruments |
Non-current liabilities | ||||||
Financial debts | 541,442 | 541,751 | 524,969 | 2,052 | 14,730 | 0 |
Debt excluding derivatives | 539,390 | 539,699 | 524,969 | 0 | 14,730 | 0 |
Derivative liabilities | 2,052 | 2,052 | 0 | 2,052 | 0 | 0 |
Other non-current liabilities | 26,325 | 26,325 | 17,969 | 0 | 0 | 8,356 |
Prepaid income and other | 8,356 | 8,356 | 0 | 0 | 0 | 8,356 |
accrual accounts | ||||||
Miscellaneous debts | 17,969 | 17,969 | 17,969 | 0 | 0 | 0 |
Current liabilities | ||||||
Trade and other payables | 628,387 | 628,387 | 628,387 | 0 | 0 | 0 |
Current Financial debts | 117,915 | 117,939 | 111,218 | 1,102 | 5,619 | 0 |
Debt excluding derivatives | 115,019 | 115,043 | 111,218 | 0 | 3,825 | 0 |
Current derivative liabilities | 2,896 | 2,896 | 0 | 1,102 | 1,794 | 0 |
Other current liabilities | 2,203 | 2,203 | 0 | 0 | 0 | 2,203 |
Prepaid income and other | 2,203 | 2,203 | 0 | 0 | 0 | 2,203 |
accrual accounts | ||||||
Offsetting financial assets and liabilities (IFRS 7 amendment):
The group subscribes for over-the-counter derivatives with leading banks under agreements which offset payables and receivables in the event of default of one of the contracting parties. These conditional netting agreements do not meet IAS 32 criteria for offsetting derivative assets and liabilities in the balance sheet. They do, however, fall within the scope of disclosures to be made under IFRS 7.13 on the offsetting of financial assets and liabilities. On this basis, the effects of the netting agreements are as follows:
- net amount of derivative assets under IFRS 7.13: +21.7 million euros;
- net amount of derivative liabilities under IFRS 7.13: (4.9) million euros.
The fair value of 11.5 million euros recognized in the balance sheet for derivative assets essentially relates to cross-currency swaps in US dollars. These swaps were introduced to hedge the bond issue in the United States with a nominal value of 87 million US dollars at June 30, 2020.
These transactions are equally distributed among three highly-rated bank counterparties.
NOTE 5.4 OTHER NON-CURRENT FINANCIAL ASSETS
Analysis of changes in gross amounts and impairment:
Disposals | |||||||
At | Acquisitions | or | Other(3) | At | |||
(in thousands of euros) | 06/30/2018 | or charges | reversals | 2019/06/30 | |||
Gross values (1) | |||||||
Bonduelle- 26 |
Equity investments (2) | 17,135 | 0 | 0 | 0 | 17,135 | ||
Derivative assets | 13,297 | 0 | 0 | 3,287 | 16,584 | ||
Other non-current financial assets | 5,614 | 628 | (143) | (18) | 6,080 | ||
36,046 | 629 | (143) | 3,268 | 39,800 | |||
Impairment | |||||||
Equity investments (2) | 1,075 | 0 | 0 | 0 | 1,075 | ||
Other non-current financial assets | 206 | 0 | 0 | 0 | 206 | ||
1,281 | 0 | 0 | 0 | 1,281 | |||
Net amount | |||||||
Equity investments (2) | 16,060 | 0 | 0 | 0 | 16,060 | ||
Derivative assets | 13,297 | 0 | 0 | 3,287 | 16,584 | ||
Other non-current financial assets | 5,408 | 628 | (143) | (18) | 5,875 | ||
34,765 | 629 | (143) | 3,268 | 38,519 | |||
Disposals | |||||||
At | Acquisitions | or | Other(3) | At | |||
(in thousands of euros) | 2019/06/30 | or charges | reversals | 2020/06/30 | |||
Gross values (1) | |||||||
Equity investments (2) | 17,135 | 909 | (5) | 0 | 18,039 | ||
16,584 | 0 | 0 | (1,596) | ||||
Derivative assets | 14,988 | ||||||
6,082 | 197 | (635) | (603) | ||||
Other non-current financial assets | 5,041 | ||||||
39,800 | 1,106 | (640) | (2,199) | ||||
38,067 | |||||||
Impairment | |||||||
Equity investments (2) | 1,075 | 6,616 | (5) | 0 | 7,686 | ||
Other non-current financial assets | 206 | 0 | 0 | 0 | 206 | ||
1,281 | 6,616 | (5) | 0 | ||||
7,892 | |||||||
Net amount | |||||||
Equity investments (2) | 16,060 | (5,707) | 0 | 0 | 10,353 | ||
Derivative assets | 16,584 | 0 | 0 | (1,596) | 14,988 | ||
5,876 | 197 | (635) | (603) | ||||
Other non-current financial assets | 4,835 | ||||||
38,519 | (5,510) | (635) | (2,199) | ||||
30,175 | |||||||
- Valuation principles are described in Note 1.2.
- This item corresponds to the carrying amount of the main shares in non-consolidated companies held by the group.
The heading primarily contains the Bonduelle Group's interests in Coopérative France Champignon (France), in which net income for the fiscal year was not deemed significant. In accordance with IFRS 10 and 11, this company was not consolidated (Note 1.1.2), since the group does not have a controlling interest.
The change in the fair value of these securities is recognized in shareholders' equity.
(3) Reclassifications and fair value of derivative assets.
NOTE 5.5 DERIVATIVE FINANCIAL INSTRUMENTS
The group uses over-the-counter derivatives to manage exposure to foreign exchange and interest rate risks. Group policy excludes being engaged in speculative transactions on the financial markets.
5.5.1. Interest rate derivatives
Fair value hedges
Two of the fixed-rate bonds issued by the group were swapped to a variable interest rate at the time they were issued. The EUR tranche of the USPP issued on July 6, 2017, was swapped, in full, to a variable interest rate. These swaps meet the criteria required for fair value hedge accounting under IAS 39, amended by IFRS 9. The portion of the underlying debt and the swaps were recognized in the balance sheet at their market value.
Cash flow hedges
In August 2010, the group issued a fixed-rate USPP bond of 145 million dollars. In respect of the share of debt hedged by a derivative instrument converting a USD fixed-rate into a euro fixed-rate, provided the effectiveness of the hedging relationship has been validated using prospective tests, all changes in fair value of these instruments are booked directly to equity.
Bonduelle- 27
With regard to the EUR tranche of the USPP issued in July 2017, caps were put in place to protect against any interest rate rises. These hedges meet the criteria required for accounting in equity under IFRS 9.
Hedges not eligible for hedge accounting under IFRS
The group's debt also includes outstanding debts swapped into a variable interest rate. The group is therefore exposed to increases in euro interest rates. To hedge this risk, the group has set in place tunnel-type options, or caps, that protect it against any significant rise in interest rates. These instruments now meet the criteria required for accounting in equity under IFRS 9. At June 30, 2020, the group did not have any interest rate hedges that were not eligible for hedge accounting.
5.5.2. Foreign currency derivatives
Fair value hedges
The group is exposed to changes in the value of the bonds issued in US dollar in 2010 produced by fluctuations in the EUR/ USD exchange rate. Derivatives, forward currency contracts or cross-currency swaps, qualifying for hedge accounting under IAS 39, amended by IFRS 9, have been introduced to fully hedge the residual nominal value of this risk.
As in previous years, the group introduced foreign currency and interest rate hedges on intra-group financing covering the needs of some of its subsidiaries located outside of the euro zone (Canada, Russia, Brazil, Hungary, Poland and the US). This intra-group financing has been the subject of full and systematic hedging of the foreign exchange risk, so that changes in the underlying value (loan/intra-group borrowings in currencies) are fully offset by changes in inverse values of the hedging item. Typically, these hedges were made through forward purchase or sale contracts.
Cash flow hedges
Most of the group's sales are in euros. However, in certain countries, the group may issue invoices denominated in foreign currencies, mostly the US dollar, Canadian dollar, Hungarian forint, Russian ruble and Polish zloty. The group publishes its financial statements in euros, and changes in the value of these currencies against the euro may impact consolidated net income. To limit the sensitivity of its earnings to changes in exchange rates, the group introduces cash flow hedges using foreign currency forwards and options.
Cross-currency swaps also encompass an interest rate component in the hedging. When it involves hedging changes in the value of future cash flows by freezing them using a fixed rate, this hedging is eligible for cash flow hedge treatment; changes in value are then recorded in equity, then recycled in profit and loss as and when hedged flows occur.
Hedges not eligible for hedge accounting under IFRS
Some derivatives introduced by the group to hedge future cash flows do not qualify for hedge accounting under IFRS 9. These consist mainly of out-of-the-money options. Under these circumstances, changes in value are recognized directly in profit or loss.
Bonduelle- 28
Derivatives at 2019/06/30
Market value | Carrying amount | |||||
Liabilities and | Liabilities and | |||||
Shareholders' | Shareholders' | |||||
(in thousands of euros) | Notional amount | Assets | equity | Assets | equity | |
Interest rate derivatives (A) | ||||||
Cash flow hedges | (1) | 423,266 | 257 | 2,653 | 257 | 2,653 |
Fair value hedges | 216,784 | 8,114 | 0 | 8,114 | 0 | |
Hedges not eligible for hedge accounting | ||||||
under IFRS | 0 | 0 | 0 | 0 | 0 | |
o.w. forward contracts: Swaps | 0 | 0 | 0 | 0 | 0 | |
o.w. options: Caps | 0 | 0 | 0 | 0 | 0 | |
o.w. options: Floors | 0 | 0 | 0 | 0 | 0 | |
Current portion | 401 | 222 | ||||
Non-current portion | 7,970 | 2,431 | ||||
Foreign currency derivatives (B) | ||||||
Cash flow hedges | 25,611 | 303 | 217 | 303 | 217 | |
o.w. forward contracts | 12,832 | 107 | 61 | 107 | 61 | |
o.w. options | 12,778 | 197 | 156 | 197 | 156 | |
Fair value hedges | 157,639 | 11,558 | 235 | 11,558 | 235 | |
Hedges not eligible for hedge accounting | ||||||
under IFRS | 65,609 | 201 | 756 | 201 | 756 | |
o.w. forward contracts | 35,043 | 133 | 214 | 133 | 214 | |
o.w. options | 30,566 | 68 | 542 | 68 | 542 | |
Current portion | 3,448 | 1,208 | ||||
Non-current portion | 8,614 | 1 | ||||
TOTAL DERIVATIVES (A + B) | ||||||
Current portion | 3,849 | 1,430 | ||||
Non-current portion | 16,584 | 2,432 |
- Including non-active caps
Derivatives At 2020/06/30
Market value | Carrying amount | ||||
Liabilities and | Liabilities and | ||||
Shareholders' | Shareholders' | ||||
(in thousands of euros) | Notional amount | Assets | equity | Assets | equity |
Interest rate derivatives (A) | |||||
Cash flow hedges (1) | 427,671 | 43 | 2,700 | 43 | 2,700 |
Fair value hedges | 200,902 | 8,927 | 0 | 8,927 | 0 |
Hedges not eligible for hedge accounting | |||||
under IFRS | 0 | 0 | 0 | 0 | 0 |
o.w. forward contracts: Swaps | 0 | 0 | 0 | 0 | 0 |
o.w. options: Caps | 0 | 0 | 0 | 0 | 0 |
o.w. options: Floors | 0 | 0 | 0 | 0 | 0 |
Current portion | 554 | 575 | |||
Non-current portion | 8,416 | 2,125 | |||
Foreign currency derivatives (B) | |||||
Cash flow hedges | 35,730 | 728 | 454 | 728 | 454 |
o.w. forward contracts | 21,246 | 322 | 268 | 322 | 268 |
o.w. options | 14,485 | 406 | 186 | 406 | 186 |
Fair value hedges | 86,530 | 11,359 | 720 | 11,359 | 720 |
Hedges not eligible for hedge accounting | |||||
under IFRS | 61,128 | 653 | 1,074 | 653 | 1,074 |
o.w. forward contracts | 36,874 | 525 | 551 | 525 | 551 |
o.w. options | 24,254 | 128 | 523 | 128 | 523 |
Current portion | 6,169 | 2,248 | |||
Non-current portion | 6,571 | 0 | |||
TOTAL DERIVATIVES (A + B) | |||||
Current portion | 6,723 | 2,823 | |||
Non-current portion | 14,988 | 2,125 |
- Including non-active caps
Bonduelle- 29
Group's net currency position* (excluding exposure on subsidiaries' net equity)
30/06/2019 | ||||||||||||||||||
(in thousands of euros) | USD/EUR | HUF/EUR | USD/CAD | RUB/EUR | PLN/EUR | OTHER | ||||||||||||
Net position before hedging | 2,663 | 13,640 | 14,430 | (6,739) | 4,178 | (5,917) | ||||||||||||
Net position after hedging | (1,852) | (275) | 9,182 | (384) | 1,436 | (1,203) | ||||||||||||
44,012 | ||||||||||||||||||
(in thousands of euros) | USD/EUR | HUF/EUR | USD/CAD | RUB/EUR | PLN/EUR | OTHER | ||||||||||||
Net position before hedging | 4 597 | 17 778 | 16 427 | (7,761) | 5 336 | (10,659) | ||||||||||||
Net position after hedging | (488) | (1,363) | (451) | (902) | (820) | (2,077) | ||||||||||||
NOTE 5.6 NET DEBT | ||||||||||||||||||
5.6. 1. Analysis of net debt by component | ||||||||||||||||||
At 2019/06/30 | ||||||||||||||||||
Nominal | < 6 | < 1 year | 1 to 5 | > 5 years | Total | |||||||||||||
(in thousands of euros) | months | years | ||||||||||||||||
Bonds (USPP) | 436,525 | 28,767 | 0 | 126,275 | 299,559 | 454,601 | ||||||||||||
Finance leases | 1,957 | 66 | 66 | 913 | 913 | 1,957 | ||||||||||||
Other bank borrowings | 168,531 | 178 | 35,328 | 132,915 | 110 | 168,531 | ||||||||||||
Other borrowings and financial debts | 2,906 | 903 | 903 | 549 | 549 | 2,906 | ||||||||||||
Accrued interest | 3,100 | 3,100 | 0 | 0 | 0 | 3,100 | ||||||||||||
Current bank lines | 56,918 | 56,918 | 0 | 0 | 0 | 56,918 | ||||||||||||
Total gross debt before derivatives | 669,936 | 89,933 | 36,297 | 260,652 | 301,131 | 688,012 | ||||||||||||
Derivatives - Liabilities | 0 | 1,318 | 112 | 2,431 | 0 | 3,862 | ||||||||||||
o.w derivatives hedging a debt in a fair value | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
hedge | ||||||||||||||||||
o.w. other derivatives | 0 | 1,318 | 112 | 2,431 | 0 | 3,862 | ||||||||||||
Total gross debt after fair value of | 0 | 91,251 | 36,409 | 263,083 | 301,131 | 691,874 | ||||||||||||
derivatives | ||||||||||||||||||
Derivatives - Assets | 0 | 3,702 | 147 | 10,228 | 6,355 | 20,433 | ||||||||||||
o.w derivatives hedging a debt in a fair value | 0 | 3,241 | 0 | 10,002 | 6,355 | 19,599 | ||||||||||||
hedge | ||||||||||||||||||
o.w. other derivatives | 0 | 461 | 147 | 226 | 0 | 834 | ||||||||||||
Securities | 286 | 286 | 0 | 0 | 0 | 286 | ||||||||||||
Cash | 16,407 | 16,407 | 0 | 0 | 0 | 16,407 | ||||||||||||
TOTAL NET DEBT | 70,856 | 36,261 | 252,855 | 294,775 | 654,748 | |||||||||||||
At 2020/06/30 | ||||||||||||||||||
(in thousands of euros) | Nominal | < 6 | < 1 year | 1 to 5 | > 5 years | Total | ||||||||||||
months | years | |||||||||||||||||
Bonds (USPP) | 411,592 | 29,410 | 0 | 167,243 | 232,488 | 429,141 | ||||||||||||
Lease liabilities | 84,227 | 10,712 | 8,935 | 44,602 | 19,978 | 84,227 | ||||||||||||
Other bank borrowings | 186,872 | 5,854 | 42,246 | 138,772 | 0 | 186,872 | ||||||||||||
Other borrowings and financial debts | 1,276 | 194 | 194 | 887 | 0 | 1,276 | ||||||||||||
Accrued interest | 2,575 | 2,575 | 0 | 0 | 0 | 2,575 | ||||||||||||
Current bank lines | 34,544 | 34,544 | 0 | 0 | 0 | 34,544 | ||||||||||||
Total gross debt before derivatives | 721,086 | 83,289 | 51,376 | 351,504 | 252,466 | 738,636 | ||||||||||||
Derivatives - Liabilities | 0 | 1,910 | 913 | 2,125 | 0 | 4,948 | ||||||||||||
o.w derivatives hedging a debt in a fair value | 0 | 720 | 0 | 0 | 0 | 720 | ||||||||||||
hedge | ||||||||||||||||||
Bonduelle- 30
o.w. other derivatives | 0 | 1,190 | 913 | 2,125 | 0 | 4,228 |
Total gross debt after fair value of | 0 | 85,199 | 52,289 | 353,629 | 252,466 | 743,583 |
derivatives | ||||||
Derivatives - Assets | 0 | 2,619 | 4,105 | 8,000 | 6,987 | 21,711 |
o.w derivatives hedging a debt in a fair value | 0 | 1,504 | 3,839 | 7,957 | 6,987 | 20,287 |
hedge | ||||||
o.w. other derivatives | 0 | 1,115 | 266 | 43 | 0 | 1,424 |
Securities | 178 | 178 | 0 | 0 | 0 | 178 |
Cash | 6,460 | 6,460 | 0 | 0 | 0 | 6,460 |
TOTAL NET DEBT | 715,234 | |||||
TOTAL NET DEBT - EXCLUDING IFRS 16 | 631,007 | |||||
5.6. 2. Analysis of net debt by interest rate
(in thousands of euros) | 2019/06/30 | 2020/06/30 | ||||||||
Net financial debt - Excluding IFRS 16 | 654,748 | 631,007 | ||||||||
Before interest rate hedging | ||||||||||
Fixed rate | 462,564 | 433,428 | ||||||||
Floating rate | 192,185 | 197,579 | ||||||||
After interest rate hedging | ||||||||||
Fixed rate | 521,882 | 445,471 | ||||||||
Floating rate | 132,866 | 185,537 | ||||||||
5.6. 3. Analysis of net debt by currency | ||||||||||
(in thousands of euros)/(-) = cash balance | 2019/06/30 | 2020/06/30 | ||||||||
EUR | 459,888 | 442,160 | ||||||||
USD | 178,750 | 178,303 | ||||||||
CAD | 17,492 | 6,873 | ||||||||
HUF | 9,681 | 8,398 | ||||||||
RUB | (26,927) | (12,050) | ||||||||
BRL | 5,851 | 3,215 | ||||||||
PLN | 7,504 | 2,621 | ||||||||
KZT | 2,510 | 1,488 | ||||||||
TOTAL NET DEBT - EXCLUDING IFRS 16 | 654,748 | 631,007 | ||||||||
5.6. 4. Net debt (including derivatives) and gearing | ||||||||||
Lease | ||||||||||
liabilities | Changes | Changes | ||||||||
as at | ||||||||||
in fair | in fair | |||||||||
July 1, | value of | value of | Translation | Other(1) | ||||||
2019/06/30 | 2019 | Increase | (Decrease) | debt | derivatives | adjustments | 2020/06/30 | |||
Financial | ||||||||||
liabilities | 691,874 | 0 | 19,048 | (49,603) | (492) | 1,130 | (100) | (2,500) | 659,356 | |
Lease | ||||||||||
liabilities | 0 | 91,440 | 18,606 | (21,005) | 0 | 0 | (1,155) | (3,659) | 84,227 | |
Investments | ||||||||||
and | ||||||||||
derivative | 0 | |||||||||
assets | 37,126 | 0 | (7,615) | 0 | 1,315 | (2,570) | 92 | 28,349 | ||
Net debt (A) | 654,748 | 91,440 | 37,653 | (62,993) | (492) | (186) | 1,315 | (6,251) | 715,234 | |
Net debt - | ||||||||||
excluding | 654,748 | 0 | 19,048 | (41,988) | (492) | (186) | 2,470 | (2,593) | 631,007 | |
IFRS 16 | ||||||||||
Total equity | ||||||||||
(B) | 724,972 | 709,868 | ||||||||
Capital | ||||||||||
employed | 1,379,720 | 1,425,103 |
Bonduelle- 31
(A+B)
Gearing | ||
(A/B) | 90.3% | 100.8% |
- "Other" mainly corresponds to the reclassification of former IAS 17 leases as lease liabilities (see note 1.1.1.), the change in accrued interest and non-cash contract amendments for lease liabilities.
5.6. 5. Market value of financial assets and liabilities other than derivatives
For all other financial assets and liabilities not appearing in these tables, both the market value and the carrying amount are equal to the par value.
At 2019/06/30 | |||
(in thousands of euros) | Par value | Market value | Carrying amount |
Liabilities | |||
Payables | |||
Bonds (USPP) | 436,525 | 464,020 | 454,601 |
Bonds (EuroPP) | 0 | 0 | 0 |
Bank borrowings | 170,487 | 170,487 | 170,487 |
Other borrowings and financial debts | 2,906 | 2,906 | 2,906 |
Accrued interest | 3,100 | 3,100 | 3,100 |
Current bank lines | 56,918 | 56,918 | 56,918 |
TOTAL | 669,936 | 697,431 | 688,012 |
o.w. debt covered by fair value hedge | 237,177 | 223,798 | |
o.w. debt covered by cash flow hedges | 318,204 | 318,204 | |
Assets | |||
Cash and securities | 16,693 | 16,693 | 16,693 |
TOTAL | 16,693 | 16,693 | 16,693 |
At 2020/06/30 | |||
(in thousands of euros) | Par value | Market value | Carrying amount |
Liabilities | |||
Payables | |||
Bonds (USPP) | 411,592 | 439,725 | 429,141 |
Lease liabilities | 84,227 | 84,227 | 84,227 |
Bank borrowings | 186,872 | 186,872 | 186,872 |
Other borrowings and financial debts | 1,276 | 1,276 | 1,276 |
Accrued interest | 2,575 | 2,575 | 2,575 |
Current bank lines | 34,544 | 34,544 | 34,544 |
TOTAL | 721,086 | 749,219 | 738,636 |
o.w. debt covered by fair value hedge | 219,521 | 208,938 | |
o.w. debt covered by cash flow hedges | 247,985 | 247,985 | |
Assets | |||
Cash and securities | 6,638 | 6,638 | 6,638 |
TOTAL | 6,638 | 6,638 | 6,638 |
5.6. 6. Analysis of bond issue maturities
Notional | < 1 year | 1 to 5 years | > 5 years | TOTAL | |||||||
Maturity | amount Currencies | Nominal | Interest* | Nominal | Interest* | Nominal | Interest* | Nominal | Interest* | ||
Public issues | |||||||||||
Private issues | 2022 | 145 000 | USD | 22,612 | 2,849 | 45,224 | 2,279 | 0 | 0 | 67,836 | 5,128 |
2022 | 15 175 | EUR | 3,035 | 362 | 6,070 | 290 | 0 | 0 | 9,105 | 653 | |
2027 | 150 000 | EUR | 0 | 2,640 | 60,000 | 9,507 | 90,000 | 2,377 | 150,000 | 14,524 | |
2027 | 50 000 | USD | 0 | 1,719 | 17,860 | 6,191 | 26,790 | 1,548 | 44,651 | 9,458 | |
2029 | 140 000 | EUR | 0 | 2,597 | 28,000 | 10,409 | 112,000 | 5,212 | 140,000 | 18,218 |
* Amounts expressed in euros and before any interest rate hedging.
Bonduelle- 32
At June 30, 2020
Issuances are subject to financial covenants, principally an early redemption clause should Bonduelle default on its financial debt (cross default), and in the event of failure to comply with the following ratios:
- long-termdebt/long-term equity ratio less than or equal to 0.60;
- consolidated current assets/consolidated current liabilities ratio greater than or equal to 1.10. At June 30, 2020, the group complied with these financial covenants.
5.6. 7. Liquidity
85 million euros of the RCF (Revolving Credit Facility), with a total amount of 300 million euros and a final maturity on July 2021, had been drawn as of June 30, 2020.
On this same date, the Group had several confirmed bank credit lines with maturities of up to two years, bringing the amount of confirmed bank lines (including RCF) to 440 million euros (unchanged since June 2019), of which 91 million euros had been drawn at June 30, 2020.
The sums drawn from bank loans (including RCF) confirmed beyond a year are reported in the consolidated balance sheet under non- current financial liabilities.
In addition, as part of its ongoing efforts to optimize its financing, Bonduelle has set up a 300 million euro short-term negotiable debt security (NEU CP) program. The inaugural issue was carried out on July 29, 2020 at particularly competitive terms, once again underlining investors' confidence in the group's financial strength. This program, which provides access to a new, disintermediated and flexible short-term financing resource, replaces confirmed financing lines that remain available to the Group.
6. Income tax
NOTE 6.1 INCOME TAX
6.1. 1. Analysis of net income tax expense
Total income tax expense is analyzed in the following manner:
At 2019/06/30 | At 2020/06/30 | |
Average tax rate: | 22.1% | 28.1% |
6.1. 2. Reconciliation of income tax expense and profit before tax | ||||
(in thousands of euros) | At 2019/06/30 | % | At 2020/06/30 | % |
Net earnings, group share | 72,617 | 54,620 | ||
Non-controlling interests | (44) | (18) | ||
Share of net income from associates | 48 | 80 | ||
Income tax expense | 20,555 | 21,348 | ||
PROFIT BEFORE TAX | 93,176 | 76,030 | ||
Theoretical tax expense(1) | 32,081 | 34.43% | 26,177 | 34.43% |
Reconciliation: | ||||
Permanent differences | (1,918) | (2.1)% | (253) | (0.3)% |
Rate differential (outside France)(2) | (8,947) | (9.6)% | (7,321) | (9.6)% |
Impact of tax loss carryforwards and other | (661) | (0.7)% | 2,744 | 3.6% |
ACTUAL INCOME TAX EXPENSE | 20,555 | 22.1% | 21,348 | 28.1% |
- In France, the exceptional tax contribution to which the group is subject is 3.3% for the 2019-2020 fiscal year. The theoretical rate of tax, including this extraordinary contribution, was 34.43% in 2019(2020.)
- The main contributors to the tax rate differential are Canada, Hungary and Russia.
At June 30, 2020, tax paid amounted to 27,157 thousand euros.
6.1. 3. Deferred tax
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 |
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Provisions and non-current assets | 3,404 | 2,768 |
Margin in inventory | 414 | 472 |
Tax loss carryforwards(1) | 14,535 | 20,802 |
Accelerated depreciation and regulated provisions | (14,636) | (14,785) |
Other(2) | 2,527 | 2,192 |
NET DEFERRED TAX ASSETS (LIABILITIES) | 6,244 | 11,450 |
(1 ) Due to the profit prospects of the companies concerned. | ||
(2) Change in taxes due to restatements of financial instruments. | ||
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 |
OPENING BALANCE | 1,805 | 6,244 |
Acquisitions and disposals of subsidiaries | 0 | 0 |
Tax recognized in the income statement | 2,604 | 5,508 |
Taxes recognized directly through equity | 1,740 | (228) |
Other changes(1) | 95 | (74) |
CLOSING BALANCE | 6,244 | 11,450 |
(1) Translation adjustments and item-to-item transfer.
Deferred tax assets relating to tax loss carryforwards are recognized on the basis of business plans prepared over a reasonable timeframe and to the extent that the actual existence of such tax losses is not in any way uncertain.
Tax loss carryforwards for which no deferred tax assets have been recognized due to the uncertainty of recovery associated with a lack of visibility of future profitability or with possible challenge by the local authority stood, at current rates, at 209.5 million euros at June 30, 2020, compared with 218.8 million euros at June 30, 2019.
7. Earnings per share
A dividend of 0.40 euro per share will be proposed to the Shareholders' Meeting to be held on December 3, 2020.
At June 30, 2020, Bonduelle SCA's share capital comprised 32,538,340 shares with a par value of 1.75 euros per share (see 5.4 - Consolidated statement of changes in equity).
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 |
Net earnings, group share | 72,617 | 54,620 |
Number of shares used to calculate: | ||
• net earnings | 32,093,796 | 31,961,451 |
• diluted net earnings | 32,414,447 | 32,462,281 |
Earnings per share (in euros) | ||
• basic | 2.26 | 1.71 |
• diluted(1) | 2.24 | 1.68 |
- Dilution is mainly due to the probability of exercise of stock option and free share plans. The risk of dilution mentioned above is considered as limited given the allocation of treasury shares to the objective of coverage for securities giving rights to allocations of shares.
8. Intangible assets and property, plant and equipment
NOTE 8.1 GOODWILL
Changes in goodwill were as follows:
At | Acquisitions or | Disposal, sale or | Other(1) | At | |
(in thousands of euros) | 06/30/2018 | charges | reversal | 2019/06/30 | |
GROSS AMOUNT | 461,800 | 11,775 | 0 | 8,305 | 481,881 |
Impairment | |||||
NET AMOUNT | 461,800 | 11,775 | 0 | 8,305 | 481,881 |
At | Acquisitions or | Disposal, sale or | Other(1) | At | |
(in thousands of euros) | 2019/06/30 | charges | reversal | 2020/06/30 | |
GROSS AMOUNT | 481,881 | 0 | 0 | 1,303 | 483,183 |
Bonduelle- 34
Impairment | |||||
NET AMOUNT | 481,881 | 0 | 0 | 1,303 | 483,183 |
(1) Translation adjustments.
Cash Generating Units (CGUs) presenting indications of impairment or comprising goodwill underwent impairment testing in 2020.
Depending on the CGU in question and the relevance of the assumptions and the availability of comparable benchmarks on the market, the recoverable amount of the assets used by the group is either a value in use or a market value.
The main assumptions used to determine the value in use for each CGU are described in Note 1.2 1.
The 2020 impairment tests did not result in the recognition of any goodwill impairment.
The group analyzed the sensitivity of the value obtained to three parameters that are key to the measurement approach taken:
- cash flow discount rate;
- long-termgrowth rate;
- operating margin rate.
CGUs deemed to be sensitive to one of these three variables are those for which an increase of more than 1 point in the discount rate, or a drop of more than 0.5 points in the long-term growth rate, or a drop of more than 1 point in the operating margin, would result in depreciation.
Any change of these proportions in the discount rate, the long-term growth rate or the operating margin would not result in depreciation of the CGU.
At June 30, 2020, the net amount per CGU was as follows:
At | Acquisitions or | Disposal, sale | Other(1) | At | |
Goodwill per CGU | 2019/06/30 | charges | or reversal | 2020/06/30 | |
Europe/canned and frozen | 73,913 | 0 | 0 | (416) | 73,496 |
Europe/fresh ready-to-use | 73,160 | 0 | 0 | 0 | 73,160 |
Eastern Europe/canned and frozen | 13,993 | 0 | 0 | (1,397) | 12,597 |
North and South America/canned and frozen | 46,790 | 0 | 0 | (1,316) | 45,474 |
North and South America/fresh ready-to-use | 274,025 | 0 | 0 | 4,431 | 278,457 |
Total | 481,881 | 0 | 0 | 1,303 | 483,183 |
(1) Translation adjustments.
NOTE 8.2 OTHER INTANGIBLE ASSETS
Analysis of changes in gross amounts and impairment:
Disposal, | |||||
At | Acquisitions or | sale | Other(1) | At | |
(in thousands of euros) | 2018/06/30 | charges | or reversal | 2019/06/30 | |
Gross amounts | |||||
Trademarks, patents and licenses | 25,775 | 10,360 | 0 | 250 | 36,385 |
Software | 66,693 | 4,392 | (20) | 1,377 | 72,442 |
Other | 8,527 | 118 | 0 | 217 | 8,861 |
Property, plant and equipment | 1,992 | 2,019 | 0 | (1,248) | 2,763 |
102,988 | 16,890 | (20) | 595 | 120,452 | |
Depreciation, amortization and impairment | |||||
Trademarks, patents and licenses | 1,777 | 11 | 0 | 1 | 1,789 |
Software | 56,307 | 4,676 | (20) | 57 | 61,019 |
Other | 510 | 19 | 0 | 17 | 546 |
58,593 | 4,706 | (20) | 75 | 63,354 | |
Net amounts | |||||
Trademarks, patents and licenses | 23,998 | 34,596 | |||
Software | 10,387 | 11,423 | |||
Other | 8,017 | 8,315 | |||
Property, plant and equipment | 1,992 | 2,763 | |||
44,394 | 57,098 | ||||
(1) Translation adjustments and item-to-item transfer. |
Bonduelle- 35
Disposal, | |||||
Acquisitions | sale | Other(1) | At | ||
(in thousands of euros) | At 2019/06/30 | or charges | or reversal | 2020/06/30 | |
Gross amounts | |||||
Trademarks, patents and licenses | 36,385 | 16 | 0 | (358) | 36,043 |
Software | 72,442 | 3,739 | (10) | (804) | 75,368 |
Other | 8,861 | 0 | 0 | (201) | 8,660 |
Property, plant and equipment | 2,763 | 3,002 | (2) | 606 | 6,369 |
120,452 | 6,757 | (13) | (756) | 126,440 | |
Depreciation, amortization and impairment | |||||
Trademarks, patents and licenses | 1,789 | 5 | 0 | (2) | 1,792 |
Software | 61,019 | 5,044 | (10) | (190) | 65,863 |
Other | 546 | 46 | 0 | (285) | 307 |
63,354 | 5,095 | (10) | (478) | 67,961 | |
Net amounts | |||||
Trademarks, patents and licenses | 34,596 | 34,251 | |||
Software | 11,423 | 9,505 | |||
Other | 8,315 | 8,353 | |||
Property, plant and equipment | 2,763 | 6,369 | |||
57,098 | 58,478 | ||||
(1) Translation adjustments and item-to-item transfer. |
Intangible assets with an indefinite useful life are the brands owned by the group and break down as follows:
Disposal, | ||||||||
Acquisitions | sale or | Other(1) | At | |||||
Brands per CGU | Brands | At 2019/06/30 | or charges | reversal | 2019/06/30 | |||
Europe/canned and frozen | Cassegrain | 20,215 | 0 | 0 | 0 | 20,215 | ||
0 | 0 | 0 | ||||||
Eastern Europe/canned and frozen | Globus | 1,500 | 1,500 | |||||
North and South America/canned and frozen | Artic Garden | 2,125 | 0 | 0 | (27) | 2,098 | ||
North and South America/canned and frozen | Del Monte | 10,484 | 0 | 0 | (295) | 10,189 | ||
Total | 34,324 | 0 | 0 | (323) | 34,002 | |||
(1) Translation adjustments.
NOTE 8.3 PROPERTY, PLANT AND EQUIPMENT
Analysis of changes in gross amounts and impairment:
Disposal, | |||||
sale | |||||
At | Acquisitions | or | At | ||
(in thousands of euros) | 2018/06/30 | or charges(1) | reversal | Other(2) | 2019/06/30 |
Gross amounts | |||||
Land | 52,849 | 5,048 | (151) | 758 | 58,505 |
Buildings | 485,298 | 13,286 | (3,160) | 12,642 | 508,067 |
Industrial plant, tools and equipment(3) | 942,211 | 31,806 | (18,792) | 50,988 | 1,006,213 |
Other | 62,851 | 5,823 | (2,009) | 1,705 | 68,370 |
Property, plant and equipment | 44,458 | 48,385 | (233) | (47,247) | 45,364 |
1,587,668 | 104,347 | (24,343) | 18,847 | 1,686,519 | |
Depreciation | |||||
Land | 12,307 | 930 | (29) | 20 | 13,229 |
Buildings | 320,127 | 22,151 | (2,812) | 2,579 | 342,044 |
Industrial plant, tools and equipment | 705,471 | 56,461 | (17,405) | 7,245 | 751,773 |
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Other | 46,961 | 5,383 | (1,896) | 377 | 50,825 |
Property, plant and equipment | 0 | 0 | 0 | 0 | 0 |
1,084,866 | 84,925 | (22,142) | 10,221 | 1,157,871 | |
Impairment | |||||
Land | 163 | 0 | 0 | 0 | 163 |
Buildings | 66 | 200 | 0 | 1 | 268 |
Industrial plant, tools and equipment | 331 | 694 | (605) | 1 | 421 |
Other | 0 | 5 | (5) | 0 | 0 |
Property, plant and equipment | 162 | 20 | 0 | 0 | 183 |
722 | 919 | (610) | 2 | 1,034 | |
Net amounts | |||||
Land | 40,379 | 45,114 | |||
Buildings | 165,105 | 165,755 | |||
Industrial plant, tools and equipment | 236,409 | 254,018 | |||
Other | 15,891 | 17,545 | |||
Property, plant and equipment | 44,296 | 45,181 | |||
502,080 | 527,614 |
- Investments relating to the acquisition of isolated assets for the Belgorod (Russia) and Lebanon (USA) sites amounted to 6,638 and 9,991 thousand euros respectively.
- Translation differences and item-to-item transfer.
- Of which 66% was in the Europe Zone in 2018-2019.
The gross and net amount of fixed assets acquired or refinanced through finance leases amounted to 42.6 and 3.2 million euros respectively at June 30, 2019.
Disposal, | |||||
Acquisitions | sale | Other(1) | At | ||
(in thousands of euros) | At 2019/06/30 | or charges | or reversal | 2020/06/30 | |
Gross amounts | |||||
Land | 58,505 | 374 | (68) | (192) | 58,618 |
Buildings | 508,067 | 10,330 | (674) | (2,826) | 514,897 |
Industrial plant, tools and equipment(2) | 1,006,213 | 30,339 | (14,779) | 10,825 | 1,032,597 |
Other | 68,370 | 4,050 | (1,090) | 999 | 72,329 |
Property, plant and equipment | 45,364 | 46,140 | (134) | (41,628) | 49,742 |
1,686,519 | 91,233 | (16,746) | (32,822) | 1,728,184 | |
Depreciation | |||||
Land | 13,229 | 820 | 0 | (21) | 14,028 |
Buildings | 342,044 | 21,761 | (674) | (7,577) | 355,554 |
Industrial plant, tools | 751,773 | 56,382 | (14,454) | (14,868) | 778,833 |
and equipment | |||||
Other | 50,825 | 6,324 | (1,095) | (854) | 55,200 |
Property, plant and equipment | 0 | 0 | 0 | 0 | 0 |
1,157,871 | 85,287 | (16,222) | (23,320) | 1,203,615 | |
Impairment | |||||
Land | 163 | 0 | 0 | 0 | 163 |
Buildings | 268 | 7 | 0 | 3 | 278 |
Industrial plant, tools | 421 | 0 | 5 | 348 | |
and equipment | (79) | ||||
Other | 0 | 0 | 0 | 0 | 0 |
Property, plant and equipment | 183 | 0 | (20) | 0 | 162 |
1,034 | 7 | (99) | 8 | 951 | |
Net amounts | |||||
Land | 45,114 | 44,428 | |||
Buildings | 165,755 | 159,065 |
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Industrial plant, tools | 254,018 | 253,416 |
and equipment | ||
Other | 17,545 | 17,129 |
Property, plant and equipment | 45,181 | 49,580 |
527,614 | 523,618 | |
- Currency translation adjustments and item-to-item transfers (including reclassification from finance leases to rights-of-use).
- Of which 65% was in the Europe Zone in 2019-2020.
NOTE 8.4 RIGHTS OF USE
For the first-time adoption of IFRS 16, see Note 1.1.1.
In addition, in 2019, the related asset amounts for leases are recognized in accordance with IAS 17 and are presented within property, plant and equipment (Note 8.3). In accordance with IFRS 16, these contracts are reclassified as rights of use as of July 1, 2019.
Opening | |||||||
balance sheet | |||||||
as at | Acquisitions | Disposal, sale | |||||
(in thousands of euros) | At 2019/06/30 | 2020/07/01 | or charges | or reversal | Other | (1) | At 2020/06/30 |
Gross amounts | |||||||
Land | 0 | 15,737 | 3,609 | -24 | -4,278 | 15,043 | |
Buildings | 0 | 57,453 | 4,480 | 0 | 1,223 | 63,156 | |
Industrial plant, tools | 0 | 8,134 | 7,067 | -842 | 6,598 | 20,957 | |
and equipment | |||||||
Other | 0 | 10,982 | 3,572 | -260 | -5,485 | 8,809 | |
0 | 92,307 | 18,727 | -1,126 | -1,942 | 107,965 | ||
Depreciation | |||||||
Land | 0 | 0 | 1,889 | 0 | -142 | 1,747 | |
Buildings | 0 | 0 | 9,788 | 0 | 999 | 10,787 | |
Industrial plant, tools | 0 | 0 | 6,110 | -694 | 3,054 | 8,470 | |
and equipment | |||||||
Other | 0 | 0 | 4,071 | -196 | -581 | 3,293 | |
0 | 0 | 21,857 | -890 | 3,330 | 24,296 | ||
Impairment | |||||||
Land | 0 | 0 | 0 | 0 | 0 | 0 | |
Buildings | 0 | 0 | 0 | 0 | 0 | 0 | |
Industrial plant, tools | 0 | 0 | 0 | 0 | 0 | 0 | |
and equipment | |||||||
Other | 0 | 0 | 0 | 0 | 0 | 0 | |
0 | 0 | 0 | 0 | 0 | 0 | ||
Net amounts | |||||||
Land | 13,297 | ||||||
Buildings | 52,369 | ||||||
Industrial plant, toolsand equipment | 12,487 | ||||||
Other | 5,516 | ||||||
83,669 | |||||||
(1) Currency translation adjustments and item-to-item transfers (including reclassification from finance leases to rights-of-use). |
The main contracts correspond to leases of plants, head offices and agricultural land, the principal characteristics and valuation methods of which are as follows:
- plant leases: US companies have entered into building leases for certain plants. The term of these contracts has been estimated using the contractual period;
- administrative offices: the term of these leases has been estimated taking into account the legal duration of the leases. The Group considered that at the end of the lease agreement, the penalties or ancillary costs were not significant enough to afford a constructive obligation to remain in the premises. The duration of the leases ranges from 1 year (renewable leases) to 15 years;
- agricultural land: in order to grow agricultural products, some of our production entities in Europe and the United States lease land for periods ranging from 5 to 100 years.
9. Other provisions and contingent liabilities
NOTE 9.1 OTHER PROVISIONS | ||||||
Used | Unused | Other(3) | ||||
(in thousands of euros) | 2019/30/06 | Charges | reversals | reversals | 2020/30/06 | |
Sales related risks | 1,843 | 100 | (105) | (564) | 0 | 1,275 |
Bonduelle- 38
Tax-related risks | 582 | 0 | 0 | 0 | (582) | 0 |
Employee-related risks(1) | 10,322 | 1,482 | (140) | (83) | (58) | 11,523 |
Restructuring and reorganization | 1,164 | 700 | (261) | (25) | 28 | 1,606 |
Agro-industrial risks | 1,481 | 1,973 | (589) | (854) | (11) | 1,999 |
Other risks | 1,577 | 1,352 | (21) | (940) | 103 | 2,071 |
16,969 | 5,607 | (1,116) | (2,466) | (520) | 18,475 | |
(in thousands of euros) | Current | Non-current | 2020/30/06 | |||
Sales related risks | 798 | 477 | 1,275 | |||
Employee-related risks(1) | 4,997 | 6,526 | 11,523 | |||
Restructuring and reorganization | 157 | 1,449 | 1,606 | |||
Agro-industrial risks | 1,613 | 386 | 1,999 | |||
Other risks | 112 | 1,959 | 2,071 | |||
7,677 | 10,798 | 18,475 |
- The provision mainly concerns a provision for the workers' compensation scheme. See Note 1.2.13
-
Translation adjustments and item-to-item transfers. Of which reclassification of tax risks as tax payables in accordance with IFRIC
23.
NOTE 9.2 RISKS AND DISPUTES
Bonduelle is subject to various legal and arbitration proceedings and disputes in the normal course of its business. Bonduelle may also be subject to certain claims and/or lawsuits which fall outside the scope of the ordinary course of its business.
The amount of provisions made is based on Bonduelle's assessment of the level of risk on a case-by-case basis and depends on its assessment of the basis for the claims, the stage of the proceedings and/or disputes and the arguments in its defense, it being specified that the occurrence of events during proceedings may lead to a reappraisal of the risk at any moment.
At June 30, 2020, there were no new disputes to report, other than those relating to ordinary business.
NOTE 9.3 CONTINGENT LIABILITIES | ||
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 |
Commitments given | ||
Guarantees and security deposits given (net of uses) | 56,420 | 39,251 |
Commitments received | ||
Guarantees and security deposits received (net of uses) | 6,668 | 6,075 |
The commitments correspond to our current activities.
Environment
None of the group's activities generates any major environmental liabilities.
The group occasionally incurs refurbishing costs on closed industrial sites.
Greenhouse gases: in the absence of a defined IFRS accounting policy, greenhouse gas quotas are not recognized in the consolidated financial statements.
Bonduelle Group's certified and reported emissions stood at 16,680 tCO2 for 2019.
As a result of energy savings at its sites since 2008, for example, the use of biomass steam in 2015 at the Estrées-Mons (France) site halved the group's greenhouse gas emissions subject to the Emission Trading System (ETS). Bonduelle has surplus allowances available in its account and so did not have to make purchases on the carbon allowance market.
No significant provisions for guarantees or environmental risks had been recognized at June 30, 2020.
10. Other information
NOTE 10.1 STATUTORY AUDITORS' FEES
French law requires a permanent legal control by two Independent Statutory Auditors. The main objective of this audit is to check that the financial statements are consistent, accurate and present a fair view.
The Statutory Auditors are appointed by the Ordinary Shareholders' Meeting for a renewable period of six fiscal years.
Bonduelle- 39
Bonduelle SCA's Statutory Auditors are:
Mazars
Represented by Mr. Vincent Rambaux, 61 rue Henri Regnault - 92400 Courbevoie (France).
Deloitte & Associés
Represented by Mr. Pierre-Marie Martin, 67, rue de Luxembourg - 59777 Euralille (France).
The two Statutory Auditors are legally and financially independent from each other.
The term of the Statutory Auditors appointed by the Combined Ordinary and Extraordinary Shareholders' Meeting of December 6, 2018 will expire at the Shareholders' Meeting held to approve the financial statements for the fiscal year ending June 30, 2024.
The following table presents a detailed analysis of the total fees paid by the group to its Statutory Auditors for the services rendered during fiscal years 2018-2019 and 2019-2020.
Mazars | Deloitte & Associés | Total | |||||||||||||||||||
2018-2019 | 2019-2020 | 2018-2019 | 2019-2020 | 2018-2019 | 2019-2020 | ||||||||||||||||
(in thousands of euros) | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||
Certification of | |||||||||||||||||||||
consolidated and | 723 | 97% | 985 | 98% | 850 | 75% | 547 | 84% | 1,573 | 84% | 1,532 | 92% | |||||||||
statutory financial | |||||||||||||||||||||
statements | |||||||||||||||||||||
Other certification- | 6 | 1% | 2 | 0% | 52 | 5% | 52 | 8% | 58 | 3% | 53 | 3% | |||||||||
related services | |||||||||||||||||||||
Total fees for audit- | 729 | 98% | 986 | 98% | 902 | 79% | 599 | 92% | 1,631 | 87% | 1,585 | 95% | |||||||||
related services | |||||||||||||||||||||
Tax services | 12 | 2% | 18 | 2% | 182 | 16% | 18 | 3% | 194 | 10% | 36 | 2% | |||||||||
Other | 5 | 1% | 5 | 0% | 52 | 5% | 36 | 6% | 57 | 3% | 41 | 2% | |||||||||
Total fees for non- | 17 | 2% | 23 | 2% | 234 | 21% | 54 | 8% | 251 | 13% | 77 | 5% | |||||||||
audit services | |||||||||||||||||||||
TOTAL | 746 | 100% | 1,009 | 100% | 1,136 | 100% | 653 | 100% | 1,882 | 100% | 1,662 | 100% | |||||||||
Services other than audit by the Bonduelle Group Statutory Auditors mainly comprise tax services provided in countries outside the European Union, enabling subsidiaries to meet their local filing obligations. They are subject, as appropriate, to authorization by the Supervisory Board and an annual review in accordance with Article L. 823-19 of the French Commercial Code.
NOTE 10.2 RELATED-PARTY TRANSACTIONS
10.2. 1. Subsidiaries and associates
The list of the group's subsidiaries and associates is provided in Note 10.4.
All transactions between the parent company and its subsidiaries and among the subsidiaries are eliminated on consolidation.
These transactions are for the supply of raw materials and finished products as well as for the provision of services, notably IT and human resources, and for financial interest.
The group's transactions with Huerta Gama and Bonduelle Española were not material.
For OP OASI, recognized using the equity method, the main transactions carried out, as well as its receivables and debts, are as follows:
(in thousands of euros) | At 2019/06/30 | At 2020/06/30 |
Balance sheet | ||
Customers | 3,555 | 4,240 |
Suppliers | 13,605 | 11,797 |
Income statement | ||
Sales | 3,147 | 2,845 |
Purchases | (82,199) | (72,874) |
Transactions with other related parties were not material.
Bonduelle- 40
10.2. 2. Executive Management and control bodies
They consist of the following bodies:
- the General Management, Pierre et Benoît Bonduelle SAS;
- the Supervisory Board, consisting of eight members;
- the Chief Executive Board (CEB), comprising the Chief Executive Officer and three Deputy Chief Executive Officers;
-
the Group Management Committee (GMC), consisting of 12 members as at 30 June 2020, including the members of the CEB. The current account with Pierre et Benoît Bonduelle SAS is 8,374 thousand euros in debit.
There are no other significant commitments to the latter.
10.2. 3. Compensation of the directors and corporate officers
Short-term benefits
They comprise:
- the compensation of General Management, which is determined according to Article 17 of the Company's Articles of association, in respect of which 1,815 thousand euros were paid for the fiscal year 2019-2020;
- the directors' fees received by the members of the Supervisory Board during the 2019-2020 fiscal year, amounting to 72 thousand euros. This compensation is fixed by the Shareholders' Meeting;
- the gross fixed and variable compensation paid to the Group Management Committee.
The compensation paid to the Chairman and the Chief Executive Officer of Bonduelle SA is set by the Board of Directors on the advice of the Remuneration Committee. The variable portion of compensation is based on the future performance of the group and its subsidiaries, in particular, as measured by the increase in revenue and profitability. The non-executive Chairman of Bonduelle SA does not receive any variable compensation.
(in euros) | 2018-2019 | 2019-2020 |
Number of GMC* (formerly the Executive Committee) members at June 30, 2020 | 12 | 12 |
Gross compensation paid to the GMC* (formerly the Executive Committee) | 5,171,061 | 5,461,760 |
(*) Group Management Committee |
Post-employment benefits
In application of the Decree of January 9, 2012, the group has established a supplementary, defined contribution pension plan (so- called Article 83 plan), which is paid for to a significant extent by the beneficiaries concerned, with the group paying the remainder.
This plan is for all managers who are members of the AGIRC scheme, with gross annual compensation of more than four times the annual French social security ceiling.
The reference compensation set by the plan in question and used to calculate beneficiaries' rights is the basic and variable annual compensation. This reference compensation does not include any sum that cannot be classed as salary within the meaning of Article L. 242-1 of the French Social Security Code, but which may be classed as such at a later date.
Entitlements are acquired on a monthly basis. The contributions used to fund the defined contribution pension fund amount to 8% of the reference compensation, calculated within the limit of tranches A, B and C.
62.5% of these contributions are paid by the Company and 37.5% by the beneficiary.
As regards tax and social security contributions payable by the Company, please note that:
- the tax limit is 8% of gross annual compensation limited to eight times the annual social security ceiling (PASS). Employer and employee contributions are both to be taken into consideration;
- social security contributions are 5% of gross annual compensation limited to five times the PASS. Only the employer's contribution is taken into consideration;
- the additional employer's contribution of 20% is payable on that part of the contribution that falls within the social contribution limit. Beyond this, the contribution is incorporated into the salary and is subject to social security charges.
The contribution made by Bonduelle SA in respect of this plan in fiscal year 2019-2020 was not material.
Other long-term benefits
None.
Employment contract termination benefit
These benefits comprise termination benefits and long service awards available to all employees in respect of the collective agreements linked to their employment contracts. For the 2019-2020 fiscal year, these totaled 1,172 thousand euros for GMC members.
Payment in shares
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a) Share plans previously allocated.
The shares allocated to members of the Group Management Committee with respect to previous free share allocation plans are described in Note 4.3 to the consolidated financial statements.
- Free Company share allocations for the fiscal year for all members of the Group Management Committee are described in Note 4.3 to the consolidated financial statements.
- Actual free share grants to the Group Management Committee: at June 30, 2020, 13,605 shares had been received by members of the Group Management Committee.
There were no acquisitions by the Company with a view to assignment to its employees, nor assignment of treasury shares by the Company to its employees, other than definitive allocation of free shares.
The Bonduelle Group has adopted the principles of the Afep-Medef Code regarding compensation.
NOTE 10.3 SUBSEQUENT EVENTS
None.
NOTE 10.4 LIST OF GROUP COMPANIES
Analysis of group companies by consolidation method:
Principal activities | % interest | % control | % interest | |
2019/06/30 | 2020/06/30 | 2020/06/30 | ||
1. BY FULL CONSOLIDATION | ||||
France | ||||
Bonduelle SA | Holding/Central corporate | 100.00% | 100.00% | 100.00% |
treasury | ||||
SAS Champiloire | Holding | 100.00% | 100.00% | 100.00% |
Sud Ouest Légumes Alliance - Soléal | Canned/Frozen | 47.85% | 100.00% | 100.00% |
SAS | ||||
Bonduelle Frais Traiteur SAS | Holding | 100.00% | 100.00% | 100.00% |
Bonduelle Frais France SAS | Fresh | 100.00% | 100.00% | 100.00% |
Bonduelle Traiteur International SAS | Fresh | 100.00% | 100.00% | 100.00% |
Bonduelle Europe Long Life SAS | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Development SAS | Canned/Frozen | 100.00% | 100.00% | 100.00% |
SCA Cultures France Champignon | Canned/Frozen | 100.00% | 100.00% | 100.00% |
SAS Champignonnières des Roches | Canned/Frozen | 100.00% | 100.00% | 100.00% |
SCA Champignonnières de l'Est | Canned/Frozen | 100.00% | 100.00% | 100.00% |
SAS Champignonnières de la Vienne | Canned/Frozen | 100.00% | 100.00% | 100.00% |
SCA Champignonnières de Rou Marson | Canned/Frozen | 100.00% | 100.00% | 100.00% |
SCA des Champignonnières du Moulin | Canned/Frozen | 100.00% | 100.00% | 100.00% |
SCA Culture de la Vienne | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Champiland SAS | Canned/Frozen | 95.00% | 95.00% | 95.00% |
Euromycel SAS | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Champifor GIE | EIG | 77.06% | 77.06% | 77.06% |
MOD Bond SAS (formerly COVIJU2) | Holding | 100.00% | 100.00% | 100.00% |
COVIJU3 SAS | Holding | 100.00% | 100.00% | 100.00% |
COVIJU4 SAS | Holding | 100.00% | 100.00% | 100.00% |
Outside France | ||||
Bonduelle Northern Europe, Belgium | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Nederland, Netherlands | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Deutschland GmbH, Germany | Fresh | 100.00% | 100.00% | 100.00% |
BFP GmbH, Germany | Fresh | 100.00% | 100.00% | 100.00% |
Bonduelle Österreich, Austria | Fresh | 100.00% | 100.00% | 100.00% |
Bonduelle Nordic, Denmark | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Limited, UK | No activity | 100.00% | 100.00% | 100.00% |
Bonduelle Italia, Italy | Fresh | 100.00% | 100.00% | 100.00% |
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Agricola Lombarda, Italy | Fresh | 100.00% | 100.00% | 100.00% |
Bonduelle Iberica SAU, Spain | Canned/Frozen | 100.00% | 100.00% | 100.00% |
BF Agricola 4G, Spain | Fresh | 100.00% | 100.00% | 100.00% |
BF Nature Bio 4G, Spain | Fresh | 100.00% | 100.00% | 100.00% |
Bonduelle Portugal, Portugal | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Polska, Poland | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Ceska Republika, Czech | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Republic | ||||
Bonduelle Central Europe, Hungary | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Kuban, Russia | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Coubanskie Conservi, Russia | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Agro-Rost, Russia | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Belgorod, Russia | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Kazakhstan, Kazakhstan | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle USA Inc., USA | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle US Holding, USA | Holding | 100.00% | 100.00% | 100.00% |
Bonduelle Argentina, Argentina | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Primeurop Argentina, Argentina | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Bonduelle Do Brasil Produtos | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Alimenticios, Brazil | ||||
Bonduelle Canada Inc., Canada | Canned/Frozen | 100.00% | 100.00% | 100.00% |
Ready Pac Foods Inc., USA | Fresh | 100.00% | 100.00% | 100.00% |
Ready Pac Produce Inc., USA | Fresh | 100.00% | 100.00% | 100.00% |
Missa Bay, LLC, USA | Fresh | 100.00% | 100.00% | 100.00% |
Ready Pac Florence, Partnership, USA | Fresh | 100.00% | 100.00% | 100.00% |
Salad Time, LLC, USA | Fresh | 100.00% | 100.00% | 100.00% |
2. BY THE EQUITY METHOD Outside France
OP OASI, Italy | Fresh | 35.00% | 35.00% | 35.00% |
Huerta Gama SC, Spain | Fresh | 16.66% | 16.66% | 16.66% |
Bonduelle Española, Spain | No activity | 50.00% | 50.00% | 50.00% |
Aybioo | Canned/Frozen | 0.00% | 34.00% | 34.00% |
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Bonduelle SA published this content on 25 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2020 10:04:06 UTC
