Earnings Release • Mar 15, 2012
Earnings Release
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Press release Rotterdam, 15 March 2012
Consolidated sales of Amsterdam Commodities N.V. (Acomo) increased by 52% to € 571 million (2010: € 375 million) in 2011 and net profits reached € 26.2 million (2010: € 15.5 million, +69%). Net profits from recurring operations increased by 47% to € 26.8 million (2010: € 18.2 million). These figures reflect the strong performance of all the group companies. 2011 is also the first year that the companies acquired in 2010 contributed for a full year to the annual results. Food commodity markets remained buoyant, generating high trading activities and profitable opportunities. Catz International, Van Rees Group and Snick EuroIngredients achieved new all-time high results.
| In € Million | 2011 | 2010 |
|---|---|---|
| Sales | 571.0 | 374.9 |
| Operating profit (EBIT) | 40.8 | 29.7 |
| Financial income and expenses | (2.6) | (3.2) |
| Tax | (11.4) | (8.3) |
| Net profit from recurring operations | 26.8 | 18.2 |
| Non-recurring, non-cash items | (0.6) | (2.7) |
| Net profit | 26.2 | 15.5 |
| Shareholders' equity (before final dividend) | 111.9 | 74.8 |
| Total balance sheet | 276.3 | 238.6 |
| Solvency | 40.5% | 31.3% |
| Basic earnings per share (in €) | 1.130 | 0.865 |
| Dividend proposed per share (in €) - total | 0.65 | 0.50 |
| Pay-out ratio | 58% | 58% |
| Equity per share, year-end (in €) | 4.81 | 3.67 |
| Return from recurring operations on average | 29% | 32% |
"The trading environment was particularly challenging in 2011, says managing director Stéphane Holvoet, and Acomo once again lived up to her reputation of a strong trading house. In an environment of soaring food commodity prices, our experienced trading teams have exceeded expectations in meeting the market's demands and serving our customers, and have achieved outstanding results in doing so."
The 2011 figures also reflect the full year contribution to the group's results of the new activities acquired in 2010. Red River Commodities and Van Rees Group accounted for only 8 months in the 2010 consolidated results, and King Nuts for 3 months. A summary of the main developments of the 2011 results is shown in the table below:
Catz International B.V. (spices, desiccated coconut, nuts, dried fruits) Sales increased by more than 30% to € 237 million (2010: € 181 million), reflecting substantially higher prices of many products throughout the year. Net profit reached € 13.7 million (2010: € 11.8 million, +16%), representing the seventh consecutive growth year. All activities were profitable. Tovano B.V., the 100% subsidiary in packed nuts, also had a good year.
Red River Commodities Inc. (Fargo, USA), active in sourcing, processing and distribution of edible seeds, mainly sunflower seeds, performed fully in line with our expectations when acquiring the company. The American farm belt states saw severe draughts in the South and floods in the North. The company was able to strengthen its market position in its home markets despite some pressure on consumption volumes due to sky-rocketing prices. Sales amounted to € 115 million (8 months 2010: € 71 million) and net profits were € 7.3 million (8 months 2010: € 4.9 million).
Van Rees Group B.V. (Rotterdam), the largest independent global tea sourcing and distribution company, achieved its highest profit level ever thanks to active trading, new added-value customer services and focus on costs and margins. The world tea consumption continued to increase, and easily absorbed the larger 2011 harvests. Sales amounted to € 154 million (8 months 2010: € 97 million) and net profits were € 4.1 million (8 months 2010: € 2.4 million).
King Nuts & Raaphorst B.V. in Bodegraven (nuts and rice crackers) had a challenging year. Many nuts including peanuts reached historic price levels, affecting consumption. The company was able to maintain its position as a leading supplier in Europe. Sales amounted to € 55.5 million (3 months 2010: € 13.2 million) and net profits were € 2.6 million (3 months 2010: € 0.9 million).
The distribution and blending activities in Food Ingredients (TEFCO and Snick EuroIngredients - natural ingredients for the food industry) remained positive with Snick showing growth in existing and new product segments and channels. Food Ingredients sales amounted to € 15.2 million (2010: € 14.2 million, +7%) and net profits were € 0.9 million (2010 € 0.7 million, +26%).
The much higher commodity prices resulted in a significant increase of the consolidated balance sheet total, up to € 276 million (2010: € 239 million). Key developments since the 2010 year end were:
Basic earnings per share have increased by 31% to € 1.13 (2010: € 0.865), and by 14% compared to the 2010 EPS before non-recurring items (€ 1.019).
"Our financial position was further strengthened in 2011 by the conversion of the remaining convertibles and additional working capital financing facilities", says CFO Jan ten Kate. "The solvency of the group was a robust 40% by end 2011 and our liquidity position was further enhanced by negotiating longer commitment terms of our credit facilities."
Management and Supervisory Board propose to the Shareholders to increase the total 2011 dividend by 30% to € 0.65 per share (2010: € 0.50). This represents a pay-out of 58% of net profits. Taking into account the interim dividend paid in September 2011 of € 0.13 per share, the final dividend would therefore amount to € 0.52 per share, payable in cash.
The following timetable is applicable:
| 1 June 2012 | Ex-dividend date |
|---|---|
| 5 June 2012 | Dividend record date |
| 15 June 2012 | Dividend payment date |
The record year 2011 was characterized by prolonged and unusual price increases on top of already highly priced food commodities. In the first two months of 2012, the overall trading activities remained at about the same level as last year. Given the nature of our activities, it is impossible to forecast the further development of the markets or the results of the group in 2012. We are confident that our trading teams will continue to generate profitable results for the shareholders.
The annual general meeting of Shareholders will be held on 30 May 2012 at 10:30 a.m. in the Wereldmuseum in Rotterdam.
The annual report will be published on our website www.acomo.nl on 17 April 2012.
Management and Supervisory Board
[End]
Notes to editors For further information, please contact:
Amsterdam Commodities N.V. (Acomo) De heer S.G.J. Holvoet WTC, Beursplein 37, 10e etage Rotterdam
Tel. +31 10 4051195 Fax +31 10 4055094
Creative Venue public relations De heer F. Witte, woordvoerder Sophialaan 43 1075 BM Amsterdam
Tel. +31 20 4525225 Fax +31 20 4528650
Amsterdam Commodities N.V. (Acomo) is an international group with its principal business the trade and distribution of agricultural products. Our main trading subsidiaries are Catz International B.V. in Rotterdam (100%, spices and food raw materials) , Van Rees Group in Rotterdam (100%, tea), Red River Commodities Inc. in Fargo, USA (100%, edible sunflower seeds), King Nuts & Raaphorst B.V. in Bodegraven (100%, nuts) and TEFCO & Snick EuroIngredients in Bodegraven and Beernem, Belgium (100%, food ingredients).
| 31 december 2011 | 31 december 2010 | |
|---|---|---|
| unaudited* | unaudited* | |
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | 48 206 185 | 48 071 737 |
| Property, plant and equipment | 25 405 526 | 23 259 372 |
| Other investments in companies | 296 845 | 296 944 |
| Deferred tax assets | 18 178 | 751 184 |
| Total non-current assets | 73 926 734 | 72 379 237 |
| Current assets | ||
| Inventories | 126 639 326 | 100 281 831 |
| Trade receivables | 70 259 442 | 54 975 711 |
| Other receivables | 2 623 230 | 3 547 223 |
| Derivative financial instruments | 2 314 909 | 745 117 |
| Cash and cash equivalents | 528 238 | 6 671 374 |
| Total current assets | 202 365 145 | 166 221 256 |
| Total assets | 276 291 879 | 238 600 493 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to owners of the parent | ||
| Share capital | 10 461 409 | 9 185 703 |
| Share premium reserve | 45 376 951 | 25 742 303 |
| Other reserves | ( 76 859) | (2 215 205) |
| Retained earnings | 30 000 907 | 26 613 766 |
| Result current year | 26 151 632 | 15 475 878 |
| Total shareholders' equity | 111 914 040 | 74 802 445 |
| Subordinated convertible bonds | - | 19 901 725 |
| Total guaranteed capital | 111 914 040 | 94 704 170 |
| Non-current liabilities and provisions | ||
| Borrowings | 15 904 895 | 23 054 992 |
| Deferred income tax liabilities | 7 591 445 | 5 863 211 |
| Retirement benefit obligations | 1 486 504 | 1 524 375 |
| Provisions for other liabilities and charges | 2 850 907 | 2 335 813 |
| Total non-current liabilities | 27 833 751 | 32 778 391 |
| Current liabilities | ||
| Trade creditors | 31 607 512 | 30 821 735 |
| Borrowings | 84 046 209 | 59 989 769 |
| Tax liabilities | 4 316 104 | 5 425 318 |
| Derivative financial instruments | 1 183 665 | 792 823 |
| Other liabilities and accrued expenses | 15 390 598 | 14 088 287 |
| Total current liabilities | 136 544 088 | 111 117 932 |
| Total equity and liabilities | 276 291 879 | 238 600 493 |
| Shareholders' equity per share | 4.814 | 3.665 |
| Diluted | 4.758 | 3.193 |
* pending the formal finalisation of the external audit, the financials 2011 shown above are unaudited
| 2011 | 2010 | |
|---|---|---|
| unaudited* | unaudited* | |
| Recurring operations | ||
| Sales | 570 986 669 | 374 907 518 |
| Cost of goods sold | 487 628 807 | 314 647 540 |
| Gross profit | 83 357 862 | 60 259 978 |
| Personnel costs | 28 455 838 | 18 619 369 |
| General costs | 11 826 379 | 9 972 288 |
| Depreciation and impairment charges | 2 323 767 | 1 965 377 |
| Total cost | 42 605 984 | 30 557 034 |
| Operating profit | 40 751 878 | 29 702 944 |
| Interest income | 131 081 | 254 228 |
| Interest expense | (3 091 249) | (3 411 895) |
| Other financial income and expenses | 369 344 | ( 4 564) |
| Profit before income tax | 38 161 054 | 26 540 713 |
| Income tax expense | (11 375 673) | (8 310 018) |
| Net profit from recurring operations | 26 785 381 | 18 230 695 |
| Net result from non-recurring items | ( 633 750) | (2 754 817) |
| TOTAL NET PROFIT | 26 151 631 | 15 475 878 |
| Profit attributable to owners of the parent | 26 151 631 | 15 475 878 |
| EARNINGS PER SHARE | ||
| Basic earnings per share | ||
| From recurring operations | 1,157 | 1,019 |
| From non-recurring items | -0,027 | -0,154 |
| Total basic | 1,130 | 0,865 |
| Diluted earnings per share | ||
| From recurring operations | 1,145 | 0,820 |
| From non-recurring items | -0,027 | -0,118 |
| Total diluted | 1,118 | 0,702 |
* pending the formal finalisation of the external audit, the financials 2011 shown above are unaudited
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