H1 2018 RESULTS (6 months)

The Group's transformation is gaining momentum Sharp rise in e-commerce and fresh foods & groceries sales

Resources to ensure the transformation is successful

Civrieux d'Azergues (France), 26 September 2018

The Toupargel Groupe SA Board of Directors met on 25 September 2018 to approve the interim financial statements on the basis of IFRS for the period from 1 January to 30 June 2018.

Key figures

The interim financial statements have been subjected to a limited review by the Statutory Auditors.

  • Consolidated income statement

(in €m)

H1 2018 (6 mos.)

H1 2017 (6 mos.)

Sales

123.3

135.3

Gross profit

71.2

77.3

Ebitda*

(5.0)

(1.4)

Income from ordinary activities

(7.0)

(5.8)

Operating margin

(5.7 %)

(4.3 %)

Net profit/loss, Group share

(4.9)

(4.2)

2017

(12 mos.)

271.4 153.7

(1.1) (10.6)

(3.9 %)

(7.6)

*EBITDA: income from ordinary activities - gains (+ losses) on divestment of non-current assets - reversals of provisions + depreciation, amortisation and provisions for the year

In the first half of 2018, the transformation of the Group from telephone-based sales of frozen foods to multi-channel sales of food products accelerated. Fresh foods & groceries have been available throughout France via the Group's e-commerce site since the fourth quarter of 2017, and all telesales teams started selling them as well in June 2018.

In H1 2018, consolidated sales were down 8.8% to €123.3 million. This decline derived from the following factors:

  • - there was an unfavourable calendar effect with two fewer selling days;

  • - the historical business (telephone sales of frozen foods) declined by 13%;

  • - telephone sales of fresh foods & groceries rose by 9%;

  • - e-commerce sales rose by 37%, and within that category, fresh foods & groceries surged 108%.

Several strategic partnerships, aimed at offering Toupargel's expertise in logistics and telesales to major retailers, are in a pilot phase.

The Group is taking the steps necessary to ensure this transformation is successful by significantly reducing its costs. Operating expenses declined by €4.9 million in H1 2018, principally because the methods for acquiring new customers has changed. Similar savings are expected in each of the next three half-year periods.

Income from ordinary activities totalled €-7.0 million, vs. a loss of €5.8 million in H1 2017. The loss reflected a €0.3 million increase in fuel costs and a €0.7 million rise in costs related to new financing arrangements. The competitiveness and employment tax credit (CICE) diminished by €0.5 million, because the rate declined from 7% to 6%.

  • Shareholders' equity - Debt

(in €m)

30/06/2018

31/12/2017

30/06/2017

Restated shareholders' equity (1)

59.7

54.6

57.1

Restated Net debt (2)

25.7

15.5

20.1

Restated Net debt / restated Equity

43 %

28 %

35 %

Cash flow

(6.7)

(3.1)

(2.4)

  • (1) Including a €10 million contribution from Toupargel's principal shareholders

  • (2) excl. pre-financing of "CICE" tax credit and a €10 million contribution from Toupargel's principal shareholders

After restatement to account for the pre-financing of the CICE (€16.0 million), offset on the balance sheet by assets of €19.7 million, and after reclassification of the increase in shareholder loans (€10.0 million) as near equity, the ratio of net debt to shareholders' equity stood at 43%, vs 35% as of 30 June 2017.

As of 30 June 2018, available financing totalled €50.5 million, of which €44.5 million was drawn down.

2018 Outlook

During the second half of 2018, the Group will continue to focus its resources on e-commerce sales and on the deployment of its fresh foods & groceries product range. During the same period, a nationwide media campaign will be launched to boost the business, targeting families and young seniors.

In the context of the Group's transformation, an extraordinary shareholders' meeting will be held on 16 October. Its objective will be to authorise the Board of Directors to implement a share grant programme.

ABOUT THE TOUPARGEL GROUP

Founded in 1947, Toupargel is France's leading food home delivery company. Headed by Romain Tchénio, the Group has nearly 3,000 employees throughout France and generated annual sales of €271 million in 2017.

Toupargel delivers to 800,000 customers and has a catalogue of over 2,500 fresh and groceries products and 1,300 frozen food products, including 800 own-brand items. Its products are adapted to the needs of all consumers and all dietary requirements. 80% of Toupargel's own-brand recipes are made in France. Toupargel provides local service by telephone, online atwww.toupargel.frand via its new mobile application.

Toupargel, the specialist in home delivery of food products to individual customers

Euronext Paris, Segment C

CAC®All-Share, Gaia Index

Isin FR 0000039240 - Bloomberg: TOU - Reuters: TPGEL.PA

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Financial reporting -infofinanciere@toupargel.fr

Analyst & shareholder relations -cyril.tezenas@toupargel.fr

Tel.: +33 (0)4.72.54.10.00

www.toupargelgroupe.fr

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Toupargel Groupe SA published this content on 27 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 September 2018 07:31:05 UTC