Earnings Release • Jul 22, 2019
Earnings Release
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| Sales: | €700.2 million | (2017: €709.7 million, -1.3%) |
|---|---|---|
| EBITDA: | €50.4 million | (2017: €52.1 million, -3.3%) |
| Net profit: | €31.1 million | (2017: €32.5 million, -4.2%) |
| Earnings per share: | €1.263 | (2017: €1.327, -4.8%) |
| Proposed dividend: | €1.00 per share | (2017: €1.10 per share) |
| Solvency: | 53.4% | (2017: 53.5%) |
Pending the finalization of the external audit, the financials 2018 shown above are unaudited.
Today, Amsterdam Commodities N.V. (Acomo), the Euronext Amsterdam-listed trader in spices and nuts, edible seeds, tea and food ingredients reports a net profit at €31.1 million for its financial year 2018. The Company's reported net profit decreased by 4% versus the year 2017. Considering the challenging market circumstances with decreasing commodity prices, the Board of Directors is pleased with the Company's results and the performance of its trading teams. Acomo proposes its shareholders a dividend of €1.00 per share (2017: €1.10) following the consistent policy on dividend pay-out.
| 2018 | 2017 | |
|---|---|---|
| Consolidated figures (in € millions) | ||
| Sales | 700.2 | 709.7 |
| Gross margin | 116.9 | 116.9 |
| EBITDA | 50.4 | 52.1 |
| Operating income (EBIT) | 45.0 | 46.4 |
| Financial result | (4.0) | (3.0) |
| Corporate income tax | (9.9) | (10.9) |
| Net profit | 31.1 | 32.5 |
| Shareholders' equity (before final dividend) | 193.5 | 185.1 |
| Total assets | 362.2 | 346.0 |
| Ratios | ||
| Solvency – shareholders' equity as % of total assets | 53.4% | 53.5% |
| Leverage ratio (net debt/EBITDA) | 1.8 | 1.5 |
| Return on equity | 16.4% | 17.6% |
| Dividend pay-out ratio | 79.2% | 83.4% |
| Key performance indicators (in €) | ||
| Earnings per share | 1.263 | 1.327 |
| Equity per share at year-end | 7.851 | 7.520 |
| Dividend per share – total (2018: proposed) | 1.00 | 1.10 |
In 2018, consolidated reported sales of Amsterdam Commodities N.V. (Acomo) decreased slightly by 1.3% to €700.2 million (2017: €709.7 million). Reported gross margin remained in line with 2017 at €116.9 million. Gross margin as a percentage of sales increased with 0.2 percentage points. For the full year 2018, reported net profit reached €31.1 million, a decrease of €1.4 million versus 2017 (€32.5 million, -4.2%).
Unrealized FX hedge results (due to not applying hedge accounting) had a positive effect on gross margin of €2.1 million (2017: -€1.4 million). The impact of unrealized FX hedge results on net profit was €1.6 million (2017: -€1.1 million).
Costs increased by 2.5% due to further investments in the organization and inflation.
There were no non-recurring items in 2018. In 2017 net results were positively impacted by non-recurring items of in total +€0.7 million.
The euro/US dollar exchange rate was stable during the first four months of the year. In the remainder of the year the US dollar strengthened. The average annual euro/US dollar exchange rate in 2018 was 1.181 (2017: 1.130). The FX rates contributed negatively to sales (-€12.5 million) and net profit (-€0.5 million).
The 2018 year-end exchange rate of 1.147 reflects the stronger US dollar against the euro when compared to the 2017 year-end rate of 1.200. As per 31 December 2018, this resulted in an increase in total assets (+€6.1 million).
'In 2018, the performance of the Group was solid given the declining commodity price levels in most of our product categories. In several major product groups prices declined by 20% to 40%. On top of these low price levels, the geopolitical environment created uncertainty in the market and added to the increasingly short-term focus among customers. I thank our teams who demonstrated their day-to-day flexibility under all circumstances. They continue to be able to bridge our customers' and supplier's needs, underlining the added value that our Group is able to deliver through the various supply chains that we service,' said Group Managing Director Allard Goldschmeding. 'One example is our European edible seeds business, which bounced back after a difficult 2017 and delivered an outstanding performance in 2018.'
Catz International in Rotterdam, the Netherlands, performed well in difficult market circumstances, but reported a lower profit. Pepper prices continued the decline of 40% during 2017 with another 40% in 2018, and reached the lowest price levels in nine years. Most other spices reported lower price levels as well. In addition desiccated coconut price levels declined on average by 15%. Dried fruits and dehydrated vegetables faced slow markets and lower price levels. Nuts saw declining prices for most of the year for key categories. Towards the end of the year, market conditions for some nuts improved.
Tovano in Maasdijk, the Netherlands, active in packed nuts and dried fruits, was impacted by the low price levels in nuts. However, profitability was only slightly below prior year.
King Nuts & Raaphorst in Bodegraven, the Netherlands, active in nuts and rice crackers, reported a sales growth despite lower price levels due to increased volumes. For most of the year prices of major nuts declined. Towards the end of the year, nut prices improved, and King Nuts & Raaphorst achieved good results.
Delinuts in Ede, the Netherlands, active in nuts and dried fruits, brought further focus in their portfolio in 2018 after joining the Group early 2017. The young and energetic team in Ede developed well in 2018 and is well positioned to further build the business.
Red River Commodities in Fargo (ND), USA, active in the sourcing, processing and distribution of edible seeds (mainly sunflower), had a challenging year. The wildlife division had a slow start of the year due to low market demand resulting in lower volumes. Export opportunities were limited due to the changed market circumstances. The import trading entity Red River Global Ingredients (Canada), however, reported a substantial sales growth and proved the trend of growing market opportunities for imported products. The SunGold division achieved a major success by being awarded the Spitz® production contract. Production of Spitz® was transferred into SunGold during the summer months within an extremely short time frame. The unique product and positioning of SunButter® continued to provide substantial opportunities.
Red River-Van Eck in Zevenbergen, the Netherlands, delivered a strong performance due to improved market circumstances and a successful anticipation of market trends.
SIGCO Warenhandel in Hamburg, Germany, developed well in its core products and increased margins due to a focussed commercial strategy.
Van Rees Group in Rotterdam, the Netherlands, reported sales growth at stable margins. Global availability of tea has been good in 2018. Kenya experienced a record crop resulting in low prices. Prices in Sri Lanka were high in the first half of 2018, but eased in the second half year. Business growth was achieved in Asia and in high-margin specialty teas, creating a good starting point for the company's 200th anniversary in 2019.
Snick EuroIngredients in Ruddervoorde, Belgium, active in food ingredients, continued to be successful and came close to last year's record performance. The overall margin percentage was healthy and investments in additional mixing capacity were made to facilitate further growth.
Total assets per 31 December 2018 amounted to €362.2 million (year-end 2017: €346.0 million, +4.7%).
In 2018, the main financial developments were:
The Board of Directors proposes a dividend of €1.00 per share (2017: €1.10). This represents a pay-out of 79% of earnings per share (2017: 83%). Taking into account the interim dividend of €0.40 per share paid in August 2018, the final 2018 dividend therefore amounts to €0.60 per share, payable in cash.
The following dividend timetable applies:
| 29 April 2019 | Ex-dividend date (final dividend 2018) |
|---|---|
| 30 April 2019 | Final dividend record date |
| 9 May 2019 | Final dividend payment date |
| 23 July 2019 | Ex-dividend date (interim dividend 2019) |
| 24 July 2019 | Interim dividend record date |
| 2 August 2019 | Interim dividend payment date |
The performance in the second half of 2018 was generally in line with the second half of prior year due to somewhat improved market conditions towards the end of the year.
Although it is still very early in the year, 2019 activity has started generally in line with the second half of 2018. Given the nature of the Group's activities, it is impossible to forecast market developments or likely Group results. However, the Company is confident that the teams will continue to generate good results for the shareholders.
The annual general meeting of shareholders will be held on Thursday 25 April 2019 at 10 am at the Hilton Hotel in Rotterdam, the Netherlands. The 2018 Annual Report will be published on www.acomo.nl on Thursday 7 March 2019, after the close of trading.
Rotterdam, 14 February 2019
Board of Directors
| Page | 7 | Consolidated balance sheet as at 31 December 2018 |
|---|---|---|
| Page | 9 | Consolidated income statement 2018 |
| Page | 10 | Condensed consolidated cash flow statement 2018 |
This report in the English language has also been translated into the Dutch language. In case of any differences between the two versions, the English version will prevail.
For further information, please contact:
| Amsterdam Commodities N.V. (Acomo) | Creative Venue PR |
|---|---|
| Mr A.W. Goldschmeding | Mr F.J.M. Witte, spokesperson |
| WTC, Beursplein 37 | Sophialaan 43 |
| 3011 AA Rotterdam | 1075 BM Amsterdam |
| The Netherlands | The Netherlands |
| [email protected] | [email protected] |
| Tel. +31 10 4051195 | Tel. +31 20 4525225 |
| www.acomo.nl | www.creativevenue.nl |
Amsterdam Commodities N.V. (Acomo) is an international group with as its principal business the trade and distribution of natural food products and ingredients. Our main trading subsidiaries are Catz International B.V. in Rotterdam, the Netherlands (spices and food raw materials), Van Rees Group B.V. in Rotterdam, the Netherlands (tea), Red River Commodities Inc. in Fargo, USA (confectionary sunflower seeds), Red River Global Ingredients Ltd. in Winkler, Canada, Red River-van Eck B.V. in Zevenbergen, the Netherlands, and SIGCO Warenhandelsgesellschaft mbH in Hamburg, Germany (edible seeds), King Nuts B.V. in Bodegraven, Delinuts B.V. in Ede, and Tovano B.V. in Maasdijk, the Netherlands (nuts), and Snick EuroIngredients N.V. in Ruddervoorde, Belgium (food ingredients). Acomo shares have been traded on Euronext Amsterdam since 1908.
| Consolidated balance sheet before final dividend (in € thousands) |
31 December 2018 * unaudited |
31 December 2017 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | 68,098 | 66,242 |
| Property, plant and equipment | 38,057 | 36,574 |
| Other non-current receivables | 1,261 | 1,257 |
| Deferred tax assets | 1,484 | 1,846 |
| Total non-current assets | 108,900 | 105,919 |
| Current assets | ||
| Inventories | 142,512 | 149,570 |
| Trade receivables | 100,269 | 83,493 |
| Other receivables | 7,601 | 4,131 |
| Derivative financial instruments | 1,954 | 261 |
| Cash and cash equivalents | 957 | 2,590 |
| Total current assets | 253,293 | 240,045 |
| Total assets | 362,193 | 345,964 |
| Consolidated balance sheet before final dividend (in € thousands) |
31 December 2018 * unaudited |
31 December 2017 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Total shareholders' equity | 193,522 | 185,051 |
| Non-current liabilities and provisions | ||
| Bank borrowings | 9,068 | 11,571 |
| Provisions | 8,804 | 9,448 |
| Total non-current liabilities and provisions | 17,872 | 21,019 |
| Current liabilities | ||
| Bank borrowings | 83,513 | 68,214 |
| Trade creditors | 45,713 | 45,593 |
| Tax liabilities | 3,233 | 6,135 |
| Derivative financial instruments | 165 | 1,271 |
| Other current liabilities and accrued expenses | 18,175 | 18,681 |
| Total current liabilities | 150,799 | 139,894 |
| Total equity and liabilities | 362,193 | 345,964 |
| Consolidated income statement (in € thousands) |
2018 * unaudited |
2017 |
|---|---|---|
| Sales | 700,170 | 709,679 |
| Cost of goods sold | (583,317) | (592,758) |
| Gross margin | 116,853 | 116,921 |
| Personnel costs | (43,203) | (42,303) |
| General costs | (23,275) | (22,533) |
| Total costs | (66,478) | (64,836) |
| EBITDA | 50,375 | 52,085 |
| Depreciation and amortization | (5,333) | (5,643) |
| Operating income (EBIT) | 45,042 | 46,442 |
| Interest income | 42 | 68 |
| Interest expense | (4,053) | (3,114) |
| Other financial income and expenses | (22) | (60) |
| Profit before income tax | 41,009 | 43,336 |
| Corporate income tax | (9,902) | (10,864) |
| Net profit | 31,107 | 32,472 |
| Total basic EPS (in €) | 1.263 | 1.327 |
| Total diluted EPS (in €) | 1.263 | 1.325 |
| Condensed consolidated cash flow statement | 2018 | 2017 |
|---|---|---|
| (in € thousands) | * unaudited | |
| Cash flow from operating activities | 48,985 | 54,520 |
| Net changes in working capital | (10,599) | 12,328 |
| Paid interest and taxes | (19,041) | (16,725) |
| Net cash generated from operating activities | 19,345 | 50,123 |
| Cash flow from investing activities | ||
| Investments in intangible assets, and property, plant & equipment | (5,559) | (5,736) |
| Acquisitions | - | (7,980) |
| Other investing activities | (274) | 57 |
| Net cash flow from investing activities | (5,833) | (13,659) |
| Cash flow from financing activities | ||
| Dividend paid | (27,088) | (28,013) |
| Proceeds from new shares | 348 | 450 |
| Net changes in long-term borrowings | (2,359) | 4,582 |
| Net changes in bank financing of working capital | 13,942 | (12,713) |
| Net cash flow from financing activities | (15,157) | (35,694) |
| Net increase/(decrease) in cash and cash equivalents | (1,645) | 770 |
| Cash and cash equivalents at the beginning of the year | 2,590 | 1,805 |
| Exchange gains/(losses) on cash and cash equivalents | 12 | 15 |
| Cash and cash equivalents at the end of the year | 957 | 2,590 |
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