Earnings Release • Jun 20, 2017
Earnings Release
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Consolidated annual information on the financial year 2016/17
Halle, 20 June 2017
| 1/4/2016 | 1/4/2015 | ||
|---|---|---|---|
| (in million EUR) | - 31/3/2017 |
- 31/3/2016 |
Variance |
| Revenue | 9.493,5 | 9.177,5 | +3,4% |
| Gross profit | 2.414,5 | 2.320,9 | +4,0% |
| % of revenue | 25,4% | 25,3% | |
| Operating cash flow (EBITDA) | 743,7 | 720,3 | +3,3% |
| % of revenue | 7,8% | 7,8% | |
| Operating profit (EBIT) | 493,3 | 507,2 | -2,7% |
| % of revenue | 5,2% | 5,5% | |
| Profit before tax | 509,6 | 518,4 | -1,7% |
| % of revenue | 5,4% | 5,6% | |
| Profit for the financial year | 383,2 | 366,3 | +4,6% |
| % of revenue | 4,0% | 4,0% | |
| Earnings per share - basic and diluted (in EUR) (1) | 2,60 | 2,49 | +4,7% |
(1) The weighted average number of outstanding shares equals 146.729.840 in 2016/17 compared to 147.004.025 last year.
Revenue rose by 3,4% to EUR 9.493 million in financial year 2016/17. The comparable revenue growth amounted to 2,8%. The difference in revenue growth is attributable to the deconsolidation of Pro à Pro on 1 February 2017. The financial year 2016/17 comprises Pro à Pro's results from 1 January 2016 up to and including 31 January 2017 (13 months).
Excluding petrol, the comparable revenue increased by 2,5%. The revenue growth was driven by sales price inflation and sales surface expansion and was partly offset by an unfavourable calendar effect (-0,8%, mainly impact of Easter).
Colruyt Group's market share in Belgium (Colruyt Lowest Prices, OKay and Spar) expanded from 31,5% last year to 31,7% in the financial year 2016/17.
The gross margin improved to 25,4% (25,3% last year). Excluding petrol, the margin rose by 20 basis points, primarily as a result of a milder competitive climate in the first semester. In the second semester the gross margin was lower than last year as a result of tougher competition and our consistently applied lowest price policy.
The Colruyt banner continues to offer its customers the lowest price for each product at each moment.
Colruyt Group kept its operating expenses under control, while continuing its long-term investments towards employees, efficiency, sustainability and transformation projects. This led to an increase of the net operating expenses to 17,6% (17,4% last year). The increase was partly offset by the gain realised on the net assets of Pro à Pro (EUR 22 million, after deduction of all disposal-related costs). The comparable net operating expenses increased to 17,8% of revenue.
The EBITDA margin remained stable at 7,8% of revenue: the increased gross margin was offset by higher operating expenses. Excluding the gain on the net assets of Pro à Pro, the EBITDA margin decreased by 20 basis points.
Investments in stores and the logistics infrastructure resulted in an increase of the depreciation charges by EUR 26 million to EUR 234 million.
As a result of the disposal of Pro à Pro, a one-off impairment of EUR 12 million was recorded on goodwill and customer portfolios in France.
Operating profit (EBIT) decreased by EUR 14 million to EUR 493 million. The EBIT decrease from 5,5% to 5,2% of revenue is due to the stable EBITDA margin, the higher depreciation charges and the one-off impairment in France. The disposal of Pro à Pro had a favourable impact on the operating profit of EUR 10 million. The comparable EBIT margin reached 5,1% of revenue compared to 5,5% last year.
The financial result was EUR 2 million higher than last year. The result from investments in associates increased by EUR 3 million.
The effective tax rate amounted to 25,5% in 2016/17 (29,9% last year). The decrease is primarily attributable to one-off effects related to the disposal of Pro à Pro: the realisation of tax losses carried forward (EUR 9 million) and the exempt gain on the sale.
Profit for the financial year increased by EUR 17 million to EUR 383 million.
The net result from the disposal of Pro à Pro totalled EUR 19 million. The comparable net profit (EUR 364 million) was slightly lower than last year (EUR 366 million).
The Board of Directors will propose a gross dividend of EUR 1,18 per share to the General Meeting of Shareholders. This amount is the result of the consistent application of the group's dividend pay-out policy.
Retail revenue grew by 2,4% to EUR 7.233 million. Retail accounted for 76,2% of the consolidated revenue. The Belgian and French retail markets remained competitive in 2016/17.
Revenue of the Colruyt stores in Belgium and Luxembourg climbed 1,4%. The positive impact of sales price inflation was offset by an unfavourable calendar effect (-0,8%). The investments in store modernisations were continued. The roll-out of the new store designs will be completed by the end of 2017.
Colruyt Lowest Prices delivers on its brand promise day after day by guaranteeing the lowest price at every moment and for every product. Price reductions and promotions offered by any of its competitors are immediately integrated in its sales prices. Colruyt remains the cheapest supermarket in Belgium, as was once again confirmed by consumer organisations and specialised trade press publications this year.
OKay, Bio-Planet and Cru reported an aggregate revenue growth of 11,5% as a result of new store openings, new customer inflow and sales price inflation. Over the past financial year, 9 OKay, 5 Bio-Planet and 2 Cru stores opened their doors. The new distribution centre for OKay and Bio-Planet has been fully operational since March 2016 and supports the further growth of both banners.
Colruyt Group offers its customers 3 clearly distinguishable brand layers: (inter)national brands, products labelled Boni Selection (Colruyt Group's house brand) and products labelled Everyday Selection (the group's discount brand).
The Colruyt stores in France reported a 5,0% revenue growth, excluding petrol, thanks to new customers and an increase of the average shopping cart amount. The success of the Colruyt stores in the deflationary French retail market can be explained by store network modernisation and continuous investments in price positioning.
Colruyt Group will continue to invest in its French retail activities in the years to come.
The combined store revenue of Dreamland and Dreambaby declined by 3,0%. This decline is mainly due to an unfavourable calendar effect (no Easter in the financial year 2016/17), poor weather conditions in the spring of 2016 and the shift to Collishop online sales.
The share of online in the total retail revenue has increased further and investments in e-commerce retail continued.
The websites of Bio-Planet and Collishop were updated. Collect&Go, the group's online shopping service, opened new collection points and existing collection points were enlarged. Early 2017 the SmartWithFood app was launched to help the consumer to make healthy dietary choices.
Colruyt Group invested in the development of a joint loyalty card for 9 store formats and webshops of Colruyt Group and in an accompanying app and login. Early April 2017 the Xtra loyalty card was launched. With the launch of Xtra, the group wants to tune its information, benefits and product range even more closely to the customer's interests and needs. We can speak of a success.
The wholesale and foodservice segment accounted for 17,6% of the consolidated revenue this year. Revenue from these activities climbed 6,4% to EUR 1.669 million. Excluding the 13th month of the French foodservice activities, revenue increased by 2,7%.
The wholesale activities include the deliveries to independent storekeepers in Belgium (Retail Partners Colruyt Group) and France (Coccinelle, CocciMarket and Panier Sympa). The 0,4% revenue growth to EUR 771 million is mainly attributable to the affiliated stores in France. Revenue of Retail Partners Colruyt Group, which comprises the collaboration with Spar entrepreneurs as well as the deliveries to Alvo, independent Mini Markets and independent storekeepers, remained stable.
Revenue from foodservice activities grew by 12,2%. Excluding the 13th month of Pro à Pro, revenue showed a 5,0% growth, which is attributable to the performance of both Solucious (in Belgium) and Pro à Pro (in France). The assets of our foodservice companies remain the delivery reliability, the service, the product quality and the personal contact with the customer.
In July 2016, following an in-depth strategic evaluation, Colruyt Group decided to sell its French foodservice business Pro à Pro to Metro Group in order to support Pro à Pro in its future growth and to create sustainable added value for all parties involved.
The disposal of Pro à Pro was completed on 1 February 2017. At this date, the full ownership was transferred to Metro Group. The transaction comprised the brand name and the operational business, as well as the distribution centres, logistic platforms and truck fleet.
Revenue from the other activities grew by 8,1% to EUR 591 million. These activities accounted for 6,2% of the consolidated revenue.
Revenue of the Belgian DATS 24 filling stations increased by 8,0% to EUR 586 million. The revenue growth was driven by new filling stations, volume gains in existing stations and higher fuel prices in the second semester.
DATS 24, that distinguishes itself with its ecologically sustainable strategy, continued to invest in CNG (Compressed Natural Gas) in 2016/17. The CNG network was expanded with 20 stations, bringing the total to 47. CNG is more economical and ecological than conventional fuels and less impacting on the environment and health. The group aims to have 100 CNG stations in Belgium by 2020.
Eoly, the sustainable energy producer of Colruyt Group, further developed its energy generation through wind turbines, solar panels and combined heat and power plants. Two new wind turbines became operational in 2016/17 and the hydrogen filling station in Halle was expanded.
Colruyt Group will become increasingly self-reliant in its energy needs. Eoly supplies green energy to companies of Colruyt Group, to independent stores of Retail Partners Colruyt Group and to ZEB stores. Eoly has recently also started collaborating with private companies from the manufacturing sector, a collaboration which it intends to develop further. In 2017 Eoly also set up a participation model allowing neighbours of wind turbines to become co-owners and thus share in the profits.
The net carrying amount of the tangible and intangible fixed assets increased by EUR 54 million to EUR 2.174 million. This increase is primarily the net effect of new investments (EUR 387 million), depreciation (EUR 234 million), impairments (EUR 16 million) and the disposal of the French foodservice activities (EUR 75 million).
In September 2016 the new production plant for Fine Food Meat came into use. The automated meat processing plant will be responsible for the production, cutting and conditioning of meat products, delicatessen articles and veggie products.
Net cash and cash equivalents increased by EUR 91 million to EUR 524 million as at 31 March 2017.
Consolidated annual information 2016/17 page 5 / 21
During the financial year 2016/17 2.096.447 treasury shares were purchased. As at 31 March 2017 Colruyt Group held 4.300.386 treasury shares (2,9% of the total number of shares issued).
No significant events occurred after the reporting period.
We expect the market to remain competitive in 2017/18 and do not anticipate a significant upturn in the economic climate in Belgium and France in the short term.
Colruyt Group will continue to invest in its long-term strategy. The group will continue its investments in employees, stores, IT systems, quality and sustainability. Colruyt Lowest Prices will consistently implement its lowest prices strategy. Colruyt Group will keep its operating expenses under control.
Colruyt Group will present its full-year 2017/18 guidance at the General Meeting of Shareholders on 27 September 2017.
| | Information to financial analysts | 21/06/2017 (14h00) |
|---|---|---|
VII. Contacts
For questions on this press release or for further information, please send an e-mail to [email protected] or contact Marc Hofman (CFO) or Liesbeth Nuelant (Investor Relations) by phone at +32 2 363 50 51 (extension: 92590).
Colruyt Group operates in the food and non-food distribution sector in Belgium, France and Luxembourg with approximately 540 own stores and over 600 affiliated stores. In Belgium this includes Colruyt, OKay, Bio-Planet, Cru, Dreamland, Dreambaby and the affiliated stores Spar and Spar Compact. In France, in addition to Colruyt stores, there are also affiliated Coccinelle, CocciMarket and Panier Sympa stores. The group is also actively involved in the foodservice business (supply of food products to hospitals, company canteens and catering businesses) in Belgium (Solucious). The other activities comprise the sale of fuel in Belgium (DATS 24), printing and document management solutions (Symeta) and the production of green energy. The group employs over 29.000 employees and recorded a EUR 9,4 billion revenue in 2016/17. Colruyt is listed on NYSE Euronext Brussels (COLR) under ISIN code BE0974256852.
Statements by Colruyt Group included in this press release, along with references to this press release in other written or verbal statements of the group which refer to future expectations with regard to activities, events and strategic developments of Colruyt Group, are predictions and as such contain risks and uncertainties. The information communicated relates to information available at the present time, which can differ from the final results. Factors that can generate a variation between expectation and reality are: changes in the micro- or macroeconomic context, changing market situations, changing competitive climate, unfavourable decisions with regard to the building and/or extension of new or existing stores, procurement problems with suppliers, as well as all other factors that can impact the group's result. Colruyt Group does not make any commitments with respect to future reporting that might have an influence on the group's result or which could bring about a deviation from the forecasts included in this press release or in other group communication, whether written or oral.
Deze informatie is ook beschikbaar in het Nederlands. Cette information est également disponible en français.
Only the Dutch version is the official version. The French and English versions are translations of the original Dutch version.
Consolidated annual information 2016/17 page 6 / 21
| 01/04/2016 | 01/04/2015 | |
|---|---|---|
| (in million EUR) | - 31/03/2017 |
- 31/03/2016 |
| Revenue | 9.493,5 | 9.177,5 |
| Cost of goods sold | (7.079,0) | (6.856,6) |
| Gross profit | 2.414,5 | 2.320,9 |
| Other operating income | 111,2 | 81,7 |
| Services and miscellaneous goods | (469,0) | (433,5) |
| Employee benefit expenses | (1.285,5) | (1.223,7) |
| Depreciation, amortisation and impairment of non-current assets | (250,4) | (213,1) |
| Other operating expenses | (27,5) | (25,1) |
| Operating profit (EBIT) | 493,3 | 507,2 |
| Finance income | 7,2 | 5,9 |
| Finance costs | (3,6) | (4,0) |
| Net financial result | 3,6 | 1,9 |
| Share in the result of investments accounted for using the equity method | 12,7 | 9,3 |
| Profit before tax | 509,6 | 518,4 |
| Income tax expense | (126,4) | (152,1) |
| Profit for the financial year | 383,2 | 366,3 |
| Attributable to: | ||
| Non-controlling interests | 1,3 | 0,8 |
| Owners of the parent company | 381,9 | 365,5 |
| Earnings per share (EPS) – basic and diluted (in EUR) | 2,60 | 2,49 |
| 01/04/2016 | 01/04/2015 | |
|---|---|---|
| (in million EUR) | - 31/03/2017 |
- 31/03/2016 |
| Profit for the financial year | 383,2 | 366,3 |
| Items of other comprehensive income from fully consolidated subsidiaries | ||
| Items that will not be reclassified to profit or loss | ||
| Revaluation of liabilities related to long-term post-employment benefits, after taxes (1) | (46,1) | (3,7) |
| Total of the items that will not be reclassified to profit or loss | (46,1) | (3,7) |
| Items that may be reclassified subsequently to profit or loss | ||
| Profit/(loss) from currency translation of foreign subsidiaries, after taxes | 0,8 | (0,8) |
| Net change in fair value of financial assets available for sale, after taxes | 9,0 | 11,9 |
| Total of the items that may be reclassified subsequently to profit or loss | 9,8 | 11,1 |
| Items of other comprehensive income from investments accounted for using the equity method | ||
| Items that may be reclassified subsequently to profit or loss | ||
| Net change in fair value of derivative financial instruments, after taxes | (2,8) | 1,3 |
| Total of the items that may be reclassified subsequently to profit or loss | (2,8) | 1,3 |
| Other comprehensive income for the financial year | (39,1) | 8,7 |
| Total comprehensive income for the financial year | 344,1 | 375,0 |
| Attributable to: | ||
| Non-controlling interests | 1,3 | 0,8 |
| Owners of the parent company | 342,8 | 374,2 |
(1) In light of recent events in the legislation, the defined contribution plans with a legally guaranteed return have been classified as defined benefit plans. The net defined liability has been determined based on the 'projected unit credit' method and recognised through other comprehensive income.
| (in million EUR) | 31/03/2017 | 31/03/2016 (1) |
|---|---|---|
| Goodwill | 57,4 | 89,3 |
| Intangible assets | 79,8 | 65,3 |
| Property, plant and equipment | 2.037,0 | 1.965,1 |
| Investments accounted for using the equity method | 210,8 | 171,3 |
| Financial assets | 12,0 | 42,2 |
| Deferred tax assets | 22,6 | 4,7 |
| Other receivables | 34,8 | 47,1 |
| Total non-current assets | 2.454,4 | 2.385,0 |
| Inventories | 600,3 | 640,7 |
| Trade receivables | 441,2 | 489,4 |
| Current tax assets | 0,2 | 2,1 |
| Other receivables | 36,1 | 43,9 |
| Financial assets | 24,5 | 25,5 |
| Cash and cash equivalents | 523,7 | 432,6 |
| Assets held for sale | 14,4 | - |
| Total current assets | 1.640,4 | 1.634,2 |
| TOTAL ASSETS | 4.094,8 | 4.019,2 |
| Share capital | 305,8 | 291,7 |
| Reserves and retained earnings | 1.830,2 | 1.752,6 |
| Total equity attributable to owners of the parent company | 2.136,0 | 2.044,3 |
| Non-controlling interests | 4,2 | 3,4 |
| Total equity | 2.140,2 | 2.047,7 |
| Provisions | 26,9 | 12,3 |
| Liabilities related to employee benefits | 153,6 | 83,8 |
| Deferred tax liabilities | 57,3 | 65,9 |
| Interest-bearing and other liabilities | 16,2 | 28,9 |
| Total non-current liabilities | 254,0 | 190,9 |
| Provisions | 0,4 | 0,3 |
| Bank overdrafts | - | 0,1 |
| Interest-bearing liabilities | 11,6 | 4,6 |
| Trade payables | 1.081,8 | 1.145,0 |
| Current tax liabilities | 124,3 | 133,4 |
| Liabilities related to employee benefits and other liabilities | 482,5 | 497,2 |
| Total current liabilities | 1.700,6 | 1.780,6 |
| Total liabilities | 1.954,6 | 1.971,5 |
| TOTAL EQUITY AND LIABILITIES | 4.094,8 | 4.019,2 |
(1) In the current reporting period, the line items 'Investments in associates' and 'Investments in joint ventures' are presented under one line item 'Investments accounted for using the equity method'; consequently, the figures of the comparative reporting period have also been combined.
| Attributable to the owners of the parent company | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in million EUR, except number of shares) | Number of shares | Share capital |
Number of treasury shares |
Treasury shares |
Other | reserves | Retained earnings |
Total | Non controlling |
Total equity | ||
| Revaluation reserves of liabilities related to long-term post employment benefits |
Cumulative translation adjustments |
Cash flow hedge reserves |
Fair value reserves of financial assets available for sale |
interests | ||||||||
| At 1 April 2016 | 149.609.386 | 291,7 | 2.243.808 | (81,5) | (12,3) | (0,4) | (5,6) | 11,9 | 1.840,5 | 2.044,3 | 3,4 | 2.047,7 |
| Total comprehensive income for the financial year |
- | - | - | - | (46,1) | 0,8 | (2,8) | 9,0 | 381,9 | 342,8 | 1,3 | 344,1 |
| Profit for the financial year | - | - | - | - | - | - | - | - | 381,9 | 381,9 | 1,3 | 383,2 |
| Other comprehensive income for the financial year |
- | - | - | - | (46,1) | 0,8 | (2,8) | 9,0 | - | (39,1) | - | (39,1) |
| Transactions with the owners | 326.508 | 14,1 | 2.056.578 | (98,5) | 0,6 | - | - | (15,6) | (151,7) | (251,1) | (0,5) | (251,6) |
| Capital increase | 326.508 | 14,1 | - | - | - | - | - | - | 2,4 | 16,5 | - | 16,5 |
| Treasury shares purchased | - | - | 2.096.447 | (100,0) | - | - | - | - | - | (100,0) | - | (100,0) |
| Treasury shares distributed as profit-sharing to employees |
- | - | (39.869) | 1,5 | - | - | - | - | - | 1,5 | - | 1,5 |
| Dividends and stability allowances | - | - | - | - | - | - | - | - | (168,8) | (168,8) | - | (168,8) |
| Changes in consolidation method | - | - | - | - | - | - | - | (15,6) | 15,6 | - | - | - |
| Other | - | - | - | - | 0,6 | - | - | - | (0,9) | (0,3) | (0,5) | (0,8) |
| At 31 March 2017 | 149.935.894 | 305,8 | 4.300.386 | (180,0) | (57,8) | 0,4 | (8,4) | 5,3 | 2.070,7 | 2.136,0 | 4,2 | 2.140,2 |
| Attributable to the owners of the parent company | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in million EUR, except number of shares) | Number of shares | Share capital |
Number of treasury shares |
Treasury shares |
Other | reserves | Retained earnings |
Total | Non controlling interests |
Total equity | ||
| Revaluation reserves of liabilities related to long-term post employment benefits |
Cumulative translation adjustments |
Cash flow hedge reserves |
Fair value reserves of financial assets available for sale |
|||||||||
| At 1 April 2015 | 156.636.503 | 274,6 | 9.791.743 | (361,9) | (8,6) | 0,4 | (6,9) | - | 1.900,7 | 1.798,3 | 2,4 | 1.800,7 |
| Total comprehensive income for the financial year |
- | - | - | - | (3,7) | (0,8) | 1,3 | 11,9 | 365,5 | 374,2 | 0,8 | 375,0 |
| Profit for the financial year | - | - | - | - | - | - | - | - | 365,5 | 365,5 | 0,8 | 366,3 |
| Other comprehensive income for the financial year |
- | - | - | - | (3,7) | (0,8) | 1,3 | 11,9 | - | 8,7 | - | 8,7 |
| Transactions with the owners | (7.027.117) | 17,1 | (7.547.935) | 280,4 | - | - | - | - | (425,7) | (128,2) | 0,2 | (128,0) |
| Capital increase | 472.883 | 17,1 | - | - | - | - | - | - | 2,9 | 20,0 | - | 20,0 |
| Treasury shares distributed as profit-sharing to employees |
- | - | (47.935) | 2,0 | - | - | - | - | - | 2,0 | - | 2,0 |
| Dividends and stability allowances | - | - | - | - | - | - | - | - | (150,2) | (150,2) | - | (150,2) |
| Cancellation of treasury shares | (7.500.000) | - | (7.500.000) | 278,4 | - | - | - | - | (278,4) | - | - | - |
| Other | - | - | - | - | - | - | - | - | - | - | 0,2 | 0,2 |
| At 31 March 2016 | 149.609.386 | 291,7 | 2.243.808 | (81,5) | (12,3) | (0,4) | (5,6) | 11,9 | 1.840,5 | 2.044,3 | 3,4 | 2.047,7 |
| 01/04/2016 | 01/04/2015 | |
|---|---|---|
| (in million EUR) | - 31/03/2017 |
- 31/03/2016 (1) |
| Operating activities | ||
| Profit before tax | 509,6 | 518,4 |
| Adjustments for: | ||
| Depreciation, amortisation and impairment of non-current assets | 250,4 | 213,1 |
| Finance income and finance costs | (3,6) | (1,9) |
| Share in the result of investments accounted for using the equity method | (12,7) | (9,3) |
| Other (2) | (45,1) | 9,4 |
| Cash flow from operating activities before changes in working capital and provisions | 698,6 | 729,7 |
| Decrease/(increase) in trade and other receivables | (66,6) | (27,7) |
| Decrease/(increase) in inventories | (9,6) | (44,8) |
| (Decrease)/increase in trade payables and other liabilities | 24,3 | 55,6 |
| (Decrease)/increase in provisions and liabilities related to employee benefits | 34,8 | (12,6) |
| Interest paid | (0,9) | (1,2) |
| Interest received | 4,0 | 12,0 |
| Dividends received | 1,4 | 0,1 |
| Income tax paid | (149,0) | (69,8) |
| Cash flow from operating activities | 537,0 | 641,3 |
| Investing activities | ||
| Purchase of property, plant and equipment and intangible assets | (376,3) | (381,2) |
| Business combinations (net of cash and cash equivalents acquired) and business disposals (net | 182,3 | - |
| of cash and cash equivalents disposed of) | ||
| (Increase in investment in)/proceeds from capital reimbursements of associates and joint ventures |
(6,4) | (3,7) |
| (Purchases)/sales of financial assets | 4,0 | (6,5) |
| (Payment of)/proceeds from repayment of loans granted | (0,7) | 0,3 |
| Proceeds from sale of property, plant and equipment and intangible assets | 11,6 | 12,2 |
| Cash flow from investing activities | (185,5) | (378,9) |
| Financing activities | ||
| Proceeds from the issue of share capital | 14,1 | 17,1 |
| Acquisition of non-controlling interests | (0,7) | - |
| Purchase of treasury shares | (100,0) | - |
| New/(repayment of) borrowings | (1,6) | (1,5) |
| Payment of finance lease liabilities | (3,5) | (3,5) |
| Dividends and stability allowances paid | (168,8) | (150,2) |
| Cash flow from financing activities | (260,5) | (138,1) |
| Net increase/(decrease) of cash and cash equivalents | 91,0 | 124,3 |
| Net cash and cash equivalents at 1 April | 432,5 | 308,5 |
| Effect of changes in foreign currency rates | 0 0,2 |
0 (0,3) |
| Net cash and cash equivalents at 31 March | 523,7 | 432,5 |
(1) In the current reporting period, the starting point of the statement of cash flows is 'Profit before tax' whereas in the comparative reporting period, the starting point was 'Profit for the financial year'. Furthermore, a refinement was applied by presenting 'Share in the result of investments accounted for using the equity method' separately from the line item 'Other'. As a result, the figures of the comparative period have also been adapted.
(2) The category 'Other' includes amongst others losses/(gains) on the sale of property, plant and equipment, intangible and financial non-current assets, impairments and reversal of impairments on inventories, trade receivables and other receivables, employee benefits in the context of share-based payments and capital increases reserved for employees.
Etn. Fr. Colruyt NV (hereinafter referred to as 'the Company') is domiciled in Halle, Belgium and is publicly traded on NYSE Euronext Brussels under the code COLR.
The condensed consolidated financial statements for the period ending 31 March 2017 contain the financial statements of the Company, its subsidiaries (hereinafter referred to collectively as 'Colruyt Group'), and Colruyt Group's interests in associates and joint ventures.
These condensed consolidated financial statements are an excerpt from the consolidated financial statements to be published at the end of July 2017.
These condensed consolidated financial statements have been prepared in accordance with the applicable 'International Financial Reporting Standards' (IFRS), as issued by the 'International Accounting Standards Board' (IASB) and accepted by the European Union up to 31 March 2017.
Colruyt Group's condensed consolidated financial statements were approved for publication by the Board of Directors on 15 June 2017.
Amounts are, unless mentioned otherwise, expressed in million EUR, rounded to one decimal.
The significant accounting principles applied by Colruyt Group in these condensed consolidated financial statements are consistent with those applied in the consolidated financial statements 2015/16, as published in July 2016, except for the changes listed below.
On 1 April 2016, a number of (amended) standards and improvements have become effective for Colruyt Group:
Colruyt Group did not early adopt the following published (amended) standards relevant to the group and effective only after 31 March 2017:
The amendments to IAS 7 and IAS 12 will not have an impact on Colruyt Group's consolidated financial statements. However, Colruyt Group is assessing the impact of IFRS 9, IFRS 15 and IFRS 16.
There are no other (amended) standards, interpretations or improvements which are not yet effective for Colruyt Group and which are expected to have a material impact on the consolidated financial statements of Colruyt Group.
Colruyt Group has finalised the sale of the French foodservice business Pro à Pro to Metro Group on 1 February 2017. Consequently, the results of the French foodservice business Pro à Pro (segment 'Wholesale and Foodservice') have been included in the consolidated income statement for 13 months from 1 January 2016 until 31 January 2017.
Below an overview is given of the assets and liabilities related to the French foodservice business over which Colruyt Group no longer has control:
| (in million EUR) | 31/03/2017 |
|---|---|
| Goodwill | 25,0 |
| Intangible assets and property, plant and equipment | 49,7 |
| Other non-current assets | 21,2 |
| Voo Inventories |
52,5 |
| Trade receivables | 103,6 |
| Other current assets | 10,0 |
| Cash and cash equivalents | 73,9 |
| Non-current liabilities | (9,3) |
| Trade payables | (96,7) |
| Other current liabilities | (22,2) |
| NET ASSETS OF OPERATING ACTIVITIES DISPOSED OF | 207,7 |
| Consideration received | 251,7 |
| Expenses related to the disposal | (3,0) |
| Provisions for warranty obligations | (17,6) |
| GAIN ON DISPOSAL | 23,4 |
The actuarial reserves previously recognised in other comprehensive income in equity have not been reclassified to the income statement but to other reserves within equity (EUR 0,6 million).
The total effect of the disposal of the French foodservice business Pro à Pro on the consolidated income statement is as follows:
| (in million EUR) | 2016/17 |
|---|---|
| Other operating income | 23,4 |
| Deferred tax realised as a result of the disposal of Pro à Pro | 9,0 |
| Taxes on the statutory gain | (0,3) |
| TOTAL EFFECT ON THE CONSOLIDATED INCOME STATEMENT | 32,1 |
| Retail | Wholesale and Other activities Foodservice |
Operating segments | ||||||
|---|---|---|---|---|---|---|---|---|
| (in million EUR) | 2016/17 | 2015/16 | 2016/17 | 2015/16 | 2016/17 | 2015/16 | 2016/17 | 2015/16 |
| Revenue - external | 7.233,1 | 7.061,6 | 1.669,4 | 1.569,2 | 591,0 | 546,7 | 9.493,5 | 9.177,5 |
| Revenue - internal | 85,9 | 86,8 | 18,6 | 19,6 | 47,2 | 46,5 | 151,7 | 152,9 |
| Operating profit (EBIT) | 455,7 | 466,7 | 36,2 | 31,4 | 12,2 | 13,2 | 504,1 | 511,3 |
| Share in the result of investments accounted for using the equity method |
2,0 | 1,4 | - | - | 6,5 | 7,9 | 8,5 | 9,3 |
| Purchase of property, plant and equipment and intangible assets |
291,9 | 292,6 | 19,6 | 31,0 | 23,6 | 24,9 | 335,1 | 348,5 |
| Depreciation and amortisation |
171,4 | 152,5 | 22,9 | 22,4 | 9,8 | 9,7 | 204,1 | 184,6 |
| Impairment of non-current assets |
7,6 | 2,6 | 8,4 | 1,8 | 0,2 | 0,4 | 16,2 | 4,8 |
| Operating segments | Unallocated | Eliminations between operating segments |
Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| (in million EUR) | 2016/17 | 2015/16 | 2016/17 | 2015/16 | 2016/17 | 2015/16 | 2016/17 | 2015/16 |
| Revenue – external | 9.493,5 | 9.177,5 | - | - | - | - | 9.493,5 | 9.177,5 |
| Revenue – internal | 151,7 | 152,9 | - | - | (151,7) | (152,9) | - | - |
| Operating profit (EBIT) | 504,1 | 511,3 | (10,9) | (4,8) | 0,1 | 0,7 | 493,3 | 507,2 |
| Share in the result of investments accounted for using the equity method |
8,5 | 9,3 | 4,2 | - | - | - | 12,7 | 9,3 |
| Net financial result | 3,6 | 1,9 | ||||||
| Income tax expense | (126,4) | (152,1) | ||||||
| Profit for the financial year | 383,2 | 366,3 | ||||||
| Purchase of property, plant and equipment and intangible assets |
335,1 | 348,5 | 51,4 | 39,2 | - | - | 386,5 | 387,7 |
| Depreciation and amortisation |
204,1 | 184,6 | 29,7 | 23,7 | - | - | 233,8 | 208,3 |
| Impairment of non-current assets |
16,2 | 4,8 | 0,4 | - | - | - | 16,6 | 4,8 |
| (in million EUR) | 2016/17 | 2015/16 |
|---|---|---|
| Retail Food (1) | 6.986,7 | 6.807,7 |
| Colruyt Belgium and Luxembourg (2) | 5.712,3 | 5.635,8 |
| OKay, Bio-Planet and Cru (3) | 845,7 | 758,3 |
| Colruyt France and DATS 24 France | 428,7 | 413,6 |
| Retail Non-food (1) | 246,4 | 253,9 |
| Dreamland Belgium and France and Dreambaby | 246,4 | 253,9 |
| Transactions with other operating segments | 85,9 | 86,8 |
| Retail | 7.319,0 | 7.148,4 |
| Wholesale | 771,5 | 768,7 |
| Foodservice (4) | 897,9 | 800,5 |
| Transactions with other operating segments | 18,6 | 19,6 |
| Wholesale and Foodservice | 1.688,0 | 1.588,8 |
| DATS 24 Belgium | 585,7 | 542,3 |
| Printing and document management solutions | 5,3 | 4,4 |
| Transactions with other operating segments | 47,2 | 46,5 |
| Other activities | 638,2 | 593,2 |
| Total operating segments | 9.645,2 | 9.330,4 |
| Eliminations between operating segments | (151,7) | (152,9) |
| Consolidated | 9.493,5 | 9.177,5 |
(1) The subtotals 'Food' and 'Non-food' within the operating segment 'Retail' are for information purposes only.
(2) Inclusive of the revenue of the webshops Collect&Go, Bio-Planet, Collishop, Dreamland and Dreambaby realised by the Colruyt stores.
(3) Inclusive of the revenue of the webshops Collishop, Dreamland and Dreambaby realised by the OKay and Bio-Planet stores.
(4) Inclusive of 13 months of revenue from the French foodservice business Pro à Pro.
The effective tax rate for Colruyt Group for the financial year 2016/17 is 25,5%, against 29,9% for the financial year 2015/16.
| (in million EUR) | 2016/17 | 2015/16 |
|---|---|---|
| Current year taxes Deferred taxes Adjustments relating to prior years |
139,8 (13,6) 0,2 |
151,5 0,6 - |
| Total income tax expense | 126,4 | 152,1 |
During the financial year 2016/17, Colruyt Group acquired intangible assets and property, plant and equipment for an amount of EUR 386,5 million. In the comparative financial year 2015/16, Colruyt Group acquired intangible assets and property, plant and equipment for EUR 387,7 million.
The investments of Colruyt Group include amongst others the further automation of the production facility for Fine Food Meat in Halle and further investments in the store network.
The Board of Directors will proprose a gross dividend of EUR 1,18 per share to the General Meeting of Shareholders of 27 September 2017. Last year the gross dividend amounted EUR 1,12 per share. The dividend was not incorporated in the condensed consolidated financial statements for the financial year 2016/17.
On 1 February 2017, Colruyt Group finalised the sale of its French foodservice business Pro à Pro to Metro Group. A total of eleven companies were sold to Metro Group (see also 3. Disposal of subsidiaries).
In accordance with IFRS 7 'Financial Instruments: Disclosures' and IFRS 13 'Fair Value Measurement' financial instruments measured at fair value are classified using a fair value hierarchy.
| Historical or amortised cost |
Measurement at fair value | Total | |||
|---|---|---|---|---|---|
| (in million EUR) | Quoted prices Level 1 |
Observable market inputs Level 2 |
Unobservable market inputs Level 3 |
||
| Financial assets: | |||||
| Financial assets available for sale | 0,8 | - | - | 11,2 | 12,0 |
| Loans and receivables | 488,1 | - | - | - | 488,1 |
| Financial assets held for trading | 1,6 | 22,9 | - | - | 24,5 |
| Cash and cash equivalents | 523,7 | - | - | - | 523,7 |
| Total at 31 March 2017 | 1.014,2 | 22,9 | - | 11,2 | 1.048,3 |
| Financial liabilities: | |||||
| Interest-bearing and other liabilities | 27,8 | - | - | - | 27,8 |
| Trade payables | 1.081,8 | - | - | - | 1.081,8 |
| Total at 31 March 2017 | 1.109,6 | - | - | - | 1.109,6 |
| Historical or amortised cost |
Measurement at fair value | Total | |||
|---|---|---|---|---|---|
| (in million EUR) | Quoted prices Level 1 |
Observable market inputs Level 2 |
Unobservable market inputs Level 3 |
||
| Financial assets: | |||||
| Financial assets available for sale | 0,7 | - | - | 41,5 | 42,2 |
| Loans and receivables | 545,5 | - | - | - | 545,5 |
| Financial assets held for trading | - | 25,5 | - | - | 25,5 |
| Cash and cash equivalents | 432,6 | - | - | - | 432,6 |
| Total at 31 March 2016 | 978,8 | 25,5 | - | 41,5 | 1.045,8 |
| Financial liabilities: | |||||
| Interest-bearing and other liabilities | 33,5 | - | - | - | 33,5 |
| Trade payables | 1.145,0 | - | - | - | 1.145,0 |
| Bank overdrafts | 0,1 | - | - | - | 0,1 |
| Total at 31 March 2016 | 1.178,6 | - | - | - | 1.178,6 |
The fair value hierarchy is based on the inputs used to measure financial assets and liabilities at measurement date. The following three levels are distinguished:
For the amounts presented under 'Historical or amortised cost' we can conclude that the carrying amount equals the fair value in most cases due to the nature of the instrument or due to the short-term character. The cases in which the historical or amortised cost deviates from the fair value are not material.
The financial assets available for sale, classified under level 3, consist of investments in the holding companies Sofindev II NV, Sofindev III NV and Sofindev IV NV in which Colruyt Group does not have a significant influence. These financial assets are accounted for at fair value. During the current reporting period the investments in the holding companies decreased by a net amount of EUR 30,3 million, mainly due to a change in the consolidation method of Vendis Capital NV (EUR -22,7 million) and due to the classification of the investment in the Lithuanian Group IKI (EUR -14,4 million) as held for sale.
The opening and closing balances of the investments classified under level 3 can be reconciled as follows:
| (in million EUR) | 2016/17 | 2015/16 |
|---|---|---|
| At 1 April | 41,5 | 26,2 |
| Changes in consolidation method | (22,7) | - |
| Classification as held for sale | (14,4) | - |
| Acquisitions | 2,1 | 3,5 |
| Disposals and capital decreases | (4,2) | (0,1) |
| Fair value adjustments through other comprehensive income | 9,0 | 11,9 |
| Impairments | (0,1) | - |
| At 31 March | 11,2 | 41,5 |
For a description of the risks to which Colruyt Group is exposed, how Colruyt Group manages its exposure to these risks and for a description of the contingent liabilities, we refer to the annual report 2016/17 which will be published in July 2017. There are no significant changes compared to the annual report 2015/16.
Colruyt Group has a number of commitments related to the acquisition of property, plant and equipment which have not yet been recognised in the statement of financial position for about EUR 68 million (about EUR 103 million at 31 March 2016).
There have been no significant events after the reporting period.
The statutory auditor, Ernst & Young Bedrijfsrevisoren BCVBA, represented by Mr D. Wuyts, confirms that the audit work, which is finished in substance, did not reveal any significant correction that should be made to the accounting information included in the press release.
Halle, 15 June 2017
The value of the assets and liabilities that contribute to generating income.
Gross dividend per share divided by the profit for the financial year (group share) per share.
EBIT divided by revenue.
Earnings before interest, taxes, depreciation and amortisation, or operating profit (EBIT) plus depreciation, amortisation and impairments.
EBITDA divided by revenue.
Free cash flow is defined as the sum of the cash flow from operating activities and the cash flow from investing activities.
Full-time equivalent; unit of account with which the workforce is expressed by dividing the contractual working time by the full-time working time.
'Grandes et moyennes surfaces' is a term used in France for store surfaces > 400 m² ('Retail' segment), for the activity 'Deliveries to independent storekeepers' ('Wholesale and Foodservice' segment) and for the DATS 24 petrol stations ('Retail' segment).
The realisable value of the manufactured goods less the value of the raw materials and the auxiliary materials used in the production process and the procured services.
Revenue minus cost of goods sold.
Gross profit divided by revenue.
Closing price multiplied with the number of issued shares at the reporting date.
Consists of the gross added value less depreciation, amortisation, impairments on fixed assets, provisions and write-offs of current assets.
Profit for the financial year (after tax).
Net profit divided by revenue.
The operating income less all operating costs (cost of goods sold, services and miscellaneous goods, employee benefit expenses, depreciation, amortisation, impairments and other operating expenses).
Purchase of property, plant and equipment and intangible assets also includes finance leases, but excludes acquisitions through business combinations and contributions by third parties.
Revenue comprises the sale of goods and services provided to our own customers, affiliated customers and wholesale customers, after the deduction of discounts and commissions allocated to these customers.
'Restauration hors domicile' concerns the foodservice in France which delivers to the hotel, restaurant and café sector (commercial) and to collectives such as schools, hospitals and nursing homes (social).
Return on capital employed, or operating profit (EBIT) after tax divided by the capital employed.
Interest that can be attributed to the owners of the parent company.
The number of outstanding shares at the beginning of the period, adjusted for the number of shares cancelled, treasury shares purchased or shares issued during the period multiplied by a time-correcting factor.
Deze informatie is ook beschikbaar in het Nederlands Cette information est également disponible en français.
Only the Dutch version is the official version. The French and English versions are translations of the original Dutch version.
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