LOTUS BAKERIES NV Regulated information
13 February 2015 before market
LOTUS BAKERIES: ANNUAL RESULTS 2014 - Turnover growth of almost 5% in 2014 - Recurrent operating cash flow increases strongly with more than EUR 11 million to EUR 67 million - Net result up EUR 8.9 million to EUR 36.8 million - Proposed gross dividend of EUR 12.40 per share in 20141. 2014 results
Income statement (1) (in EUR thousands) | 2014 | 2013 | Evolution % |
Turnover | 347,890 | 332,319 + 4.7 | |
Recurrent operating result (REBIT) (2) | 49,433 | 41,371 + 19.5 | |
Recurrent operating cash flow (REBITDA) (3) | 67,015 | 55,622 + 20.5 | |
Non-recurrent operating result: | (261) | (3,655) - 92.9 | |
Operating result (EBIT) (4) | 49,172 | 37,716 + 30.4 | |
Financial result | 16 | (1,740) - | |
Result before taxes | 49,188 | 35,976 + 36.7 | |
Taxes | (12,415) | (8,057) + 54.1 | |
Net result | 36,773 | 27,919 + 31.7 | |
Net result: non-controlling interests | (2) | (1) + 100.0 | |
Net result: Group share | 36,775 | 27,920 + 31.7 | |
Total number of shares at 31 December (5) | 781,597 | 770,565 + 1.4 | |
Key figures per share (in EUR) | |||
Recurrent operating result (REBIT) | 63.25 | 53.69 + 17.8 | |
Recurrent operating cash flow (REBITDA) (3) | 85.74 | 72.18 + 18.8 | |
Net result: Group share | 47.05 | 36.23 + 29.9 | |
Balance sheet (in EUR thousands) | |||
Balance sheet total | 336,989 | 334,104 + 0.9 | |
Equity | 200,629 | 171,375 + 17.1 | |
Investments (6) | 16,546 | 33,155 - 50.1 | |
Net financial debt (7) | 20,195 | 48,887 - 58.7 | |
Gross dividend (8) (in EUR per share) | 12.40 | 10.80 + 14.8 |
(1) In annex you can find the balance sheet and income statement 2014.
(2) REBIT is defined as the recurrent operating result, consisting of all the proceeds and costs relating to normal business.
(3) Recurrent operating cash flow is defined as recurrent operating result + depreciations + provisions and amounts written off +
non-cash costs of the valuation of the option and warrant plan.
(4) EBIT is defined as recurrent operating result + non-recurrent operating result.
(5) Total number of shares at 31 December, excluding treasury shares
(6) Investments in tangible and intangible fixed assets
(7) Net financial debt is defined as financial debts - cash investments - liquid assets - treasury shares
(8) For 2014: dividend will be proposed to the Ordinary General Shareholders' Meeting of 8 May 2015.
The statutory auditor, PwC Bedrijfsrevisoren, represented by Peter Opsomer, has confirmed that its audit work on the consolidated balance sheet and consolidated income statement, which has been substantially completed, has not revealed the need for any material deviations to the accounting information contained in this press release.
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Regulated information
13 February 2015 before market
2. Management explanation2.1 Turnover
In 2014 the consolidated turnover of the Lotus Bakeries Group grew by 4.7% to EUR 348 million. This growth comes almost entirely from branded products, where turnover increased by 14 million. Most of this relates to the international growth of original caramelized biscuits and spread, and the growth of Lotus Dinosaurus and waffles.
Lotus Dinosaurus made a significant contribution to growth in Belgium and France, with additional efforts made in 2014 to strengthen distribution. In December, the range was extended with a new
'Dinosaurus filled' variety: these are the typical Dinosaurus biscuits filled with a layer of real Belgian
chocolate. The basic range was also successfully launched onto the Dutch market.
2014 was a very good year for Lotus waffles. During autumn we invested heavily in Belgium in rebranding the waffle category to 'Lotus Suzy', with strong media support, presence at events and support at points of sale. In France too, Lotus Bakeries fulfilled its ambition of further developing the total waffle category. Liège waffles were relaunched with new packaging formats. For the first time, Liège waffles were supported by a national TV campaign and in-shop promotions.
The strategy of internationalizing original caramelized biscuits in a sustainable way has been consistently pursued. Several countries presented good growth in original caramelized biscuits and spread, among them the UK, France, the Netherlands and Israel. Appropriate commercial efforts adjusted to the specificities of each market contributed to a huge success and customer appreciation of both original caramelized biscuits and spread. These efforts include an active PR programme in the UK and television campaigns in France and the Netherlands. In Israel, the growth was achieved by close cooperation between our own sales team and a well-chosen distribution partner, relying strongly on television campaigns and social media.
At an international level, we will keep investing, on the one hand in our existing sales offices such as the United States and, on the other hand, in new markets. On 1 August 2014, after careful preparation, Lotus Bakeries started its own sales office in China (Shanghai), and cooperation with the distribution partner was terminated. Lotus Bakeries has been in China for 10 years now, and the development of a sales office in this region marks the next step in its long-term strategy, aimed at further growth and
market penetration.
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2.2 Operating result
The recurrent operating result (EUR 49.4 million) and recurrent operating cash flow (EUR 67 million)
increased by respectively EUR 8.1 million (19.5%) and EUR 11.4 million (20.5%) compared to last year.
Operational efficiencies resulting from the investment programs of recent years are making a significant positive contribution to operating profit. In particular, the restructuring of the gingerbread factories in the Netherlands and the continued focus on efficiency gains in the Belgian, French and Swedish factories, specializing in original caramelized biscuits, pepparkakor biscuits, waffles and cakes, have increased profitability.
Furthermore, the increased turnover of Lotus Dinosaurus, waffles, original caramelized biscuits and spread results in an increase of the operating result. Lotus Bakeries has chosen to further increase its marketing efforts in 2014 in its three largest countries. In France, 3 television campaigns were launched for original caramelized biscuits, along with a new commercial for waffles; in Belgium, in addition to original caramelized biscuits, frangipane and Lotus Dinosaurus, we invested heavily in a new Lotus Suzy commercial. As for the Netherlands, in autumn we launched a new 'Lekker thuis' (home's best) TV campaign for the Peijnenburg brand, while continuing the Snelle Jelle campaign.
In 2013, a non-recurrent operating loss of EUR 3.7 million was recorded, due mainly to restructuring costs in the gingerbread factories in the Netherlands. With the restructuring in the Netherlands now complete, the non-recurrent operating loss only amounts to EUR 0.3 million.
The financial result in 2014 is slightly positive, partly reflecting the further reduction of financial debt and the low funding costs, but mainly due to positive results on exchange rates.
The tax expense is EUR 12.4 million or 25.2% of the result before taxes.
The net result increases by 31.7% compared with 2013 to stand at EUR 36.8 million. The low financial and non-recurrent costs explain why the percentage growth in net result is even higher than that of
the operating result.
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13 February 2015 before market
2.3 Investments
In 2014 we invested a total of EUR 16.5 million. The largest investments were in Belgium, with the installation of a completely new automated production line for Lotus Dinosaurus and the building of a new headquarters in Lembeke.
Early in 2015, group management, along with the international and certain corporate departments, moved to this new location. In doing so Lotus Bakeries has opted to keep its headquarters anchored in Lembeke, where the company originated in 1932.
2.4 Net financial debt
Thanks to the strong operating cash flow, the net financial debt over the last 12 months has fallen to EUR 20.2 million and this despite investments of EUR 16.5 million.
3. Conclusion and prospects
In 2014, Lotus Bakeries was able to produce an attractive turnover growth of over 5.2% on its branded products. Profitability grew even stronger, with recurrent operating cash flow up 20.5% to EUR 67 million and net result up 31.7% to EUR 36.8 million.
The strong profitability reflects the positive effect of the restructuring of the gingerbread factories in the Netherlands, as well as the right investments and continued focus on profitability improvements in the Belgian, French and Swedish plants. The strong internal turnover growth, linked to the consistent application of the Lotus Bakeries commercial and marketing strategy, is also contributing significantly
to the increased profitability.
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Lotus Bakeries will continue to invest heavily in marketing & sales in order to support and further develop its brands and the associated specialties. The waffle category will continue to be supported in France and Belgium. The gingerbread category in the Netherlands experienced a slight decrease compared to last year. Various initiatives are being taken to support the category of gingerbread and healthy snacks: a new commercial, product innovations in terms of improved packaging and new product varieties.
We are focusing heavily on the further growth of Lotus Dinosaurus. In Belgium and France, where the brand is well established, we are expanding distribution by introducing 'Lotus Dinosaurus filled'. An additional focus is further internationalization with the introduction of the Lotus Dinosaurus range in a number of European countries like the Netherlands, UK, Sweden, Finland and the Czech Republic. As we shall be giving these introductions maximum support both in-store and through appropriate marketing efforts, their contribution to turnover and profitability in the startup phase will be very limited.
As for China, 2014 was a transition year, in which we laid the foundations for our new sales office, which will enable Lotus Bakeries to continue growing in an interesting market. The combination of local professionals and expats with long-time Lotus Bakeries experience will enable us to focus on the appropriate marketing and sales strategy for China.
Both the Management and the Board of Directors of Lotus Bakeries are convinced that the right strategy and a good basis are in place for continuing, profitable, long-term growth.
The Board of Directors will propose to the Ordinary General Meeting of Shareholders of 8 May 2015 to declare for 2014 a net dividend of EUR 9.30 per share (gross dividend of EUR 12.40), compared with EUR 8.10
(EUR 10.80 gross) in 2013.
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Regulated information
13 February 2015 before market
5. Financial calendar
Financial analysts' meeting: 13 February 2015
2014 Annual Review available on www.lotusbakeries.com: 8 April 2015
Ordinary and Extraordinary General Meeting of shareholders: 8 May 2015
Dividend payable from: 18 May 2015
Announcement of 2015 half-year results: 24 August 2015
Lotus Bakeries in a nutshell
Lotus Bakeries focuses on authentic specialties from the biscuit and cake world: original caramelized biscuits, gingerbread, cake specialties, waffles and pepparkakor biscuits. Lotus Bakeries, with headquarters in Belgium, is a dynamic, internationally oriented company with production facilities in Belgium, the Netherlands, France and Sweden, own sales organisations in approximately 10 European countries, in the United States, Hong Kong, China and Chile and an export department for the other countries. With 1,221 employees, Lotus Bakeries produces and sells high-quality, tasty products under the Lotus, Peijnenburg and Annas brand names. By maintaining a healthy balance between tradition and innovation, Lotus Bakeries indulges consumers with a unique range of products. In 2014 the Group achieved a turnover of EUR 347.9 million. The shares of Lotus Bakeries are listed on Euronext Brussels.
For more information please contact:
Jan Boone, CEO Isabelle Maes, CFO Tel. + 32 9 376 26 14 Tel. +32 9 376 26 01
Further information on Lotus Bakeries can be found on www lotusbakeries.com
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Lotus Bakeries Group Balance sheet & income statement 2014Regulated information
13 Feb. 2015 before market
CONSOLIDATED BALANCE SHEET
in thousands of EUR | 31/12/2014 | 31/12/2013 |
ASSETS | ||
Non current assets Tangible assets Goodwill Intangible assets Investment in other companies Deferred tax assets Other non current assets | 263,881 137,569 46,135 74,674 22 5,275 206 | 262,729 136,489 46,517 75,744 27 3,859 93 |
Current assets Stocks Trade receivables VAT receivables Income tax receivables Other amounts receivable Cash and cash equivalents Deferred charges and accrued income | 73,108 17,898 38,804 3,333 421 112 11,855 685 | 71,375 16,665 36,036 3,721 1,707 402 11,933 911 |
TOTAL ASSETS | 336,989 | 334,104 |
EQUITY AND LIABILITIES | ||
Equity Share Capital Retained earnings Treasury shares Other reserves Non-controlling interests | 200,629 13,190 196,147 (9,419) 656 55 | 171,375 11,246 167,099 (9,442) 2,414 58 |
Non-current liabilities Interest-bearing loans and borrowings Deferred tax liabilities Pensions Provisions Other non-current liabilities | 39,506 325 34,905 3,558 661 57 | 43,984 7,925 32,687 2,793 574 5 |
Current liabilities Interest-bearing loans and borrowings Pensions Provisions Trade payables Remuneration and social security VAT payables Tax payables Derivative financial instruments Other current liabilities Accrued charges and deferred income | 96,854 41,144 56 56 33,309 12,357 126 7,097 10 147 2,552 | 118,745 62,337 56 1,209 34,249 12,525 750 4,376 70 279 2,894 |
TOTAL EQUITY AND LIABILITIES | 336,989 | 334,104 |
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Lotus Bakeries Group Balance sheet & income statement 2014Regulated information
13 Feb. 2015 before market
CONSOLIDATED INCOME STATEMENT
in thousands of EUR | 2014 | 2013 |
Turnover Raw materials, consumables and goods for resale Services and other goods Personnel costs Depreciation and amortization on formation expenses, intangible and tangible assets Amounts written off stocks, contracts in progress and trade debtors Other operating charges Other operating income | 347,890 (104,430) (96,483) (78,888) (14,845) (1,819) (4,034) 2,042 | 332,319 (111,425) (87,259) (78,900) (13,290) (869) (2,636) 3,431 |
Recurrent operating result (REBIT) ⁽¹⁾ Non-recurrent operating result | 49,433 (261) | 41,371 (3,655) |
Operating result (EBIT) ⁽²⁾ Financial result Financial income Financial charges | 49,172 16 5,402 (5,386) | 37,716 (1,740) 2,576 (4,316) |
Result before taxes Taxes | 49,188 (12,415) | 35,976 (8,057) |
Result after taxes | 36,773 | 27,919 |
NET RESULT Net result: non-controlling interests Net result: Group share | 36,773 (2) 36,775 | 27,919 (1) 27,920 |
Other comprehensive income: Items that may be subsequently reclassified to profit and loss Currency translation differences Financial instruments Items that will not be reclassified to profit and loss Defined benefit plans Other comprehensive income for the year Total comprehensive income for the year Total comprehensive income for the year attibutable to: Non-controlling interests Equity holders of Lotus Bakeries | (1,194) (1,194) - (564) (564) (1,758) 35,015 (2) 35,017 | (581) (610) 29 409 409 (172) 27,747 (1) 27,748 |
Earnings per share Weighted average number of shares Basic earnings per share: Group share (EUR) Weighted average number of shares after effect of dilution Diluted earnings per share: Group share (EUR) Total number of shares ⁽³⁾ Diluted earnings per share: Group share (EUR) | 778,944 47.21 796,420 46.18 803,013 45.80 | 764,828 36.50 787,170 35.47 795,113 35.11 |
(1) REBIT is defined as the recurrent operating result, consisting of all the proceeds and costs relating to normal business. (2) EBIT is defined as recurrent operating result + non-recurrent operating result. (3) Total number of shares including treasury shares. |
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