Interim / Quarterly Report • Aug 30, 2013
Interim / Quarterly Report
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Rotterdam, 29 August 2013
Amsterdam Commodities N.V. ('Acomo' or the 'Company'), the trading group listed at Euronext Amsterdam active in spices and nuts, food ingredients, tea and edible seeds, recorded consolidated sales of € 302.9 million in the first half of 2013 ('HY 2013') compared to € 300.6 million in the first half of 2012 ('HY 2012') or an increase by 0.8%. Net profit amounted to € 14.3 million (HY 2012: € 13.0 million, + 10.3%). The earnings per share increased by 10.3% from € 0.559 per share in HY 2012 to € 0.617 in HY 2013. Consequently, the Group increases its HY 2013 interim dividend to € 0.17 per share (HY 2012: € 0.15 per share, + 13.3%).
According to the CEO Erik Rietkerk, appointed in May 2013, Acomo again proved its position as a reliable trading partner during the first six months of 2013. In total, sales were stable and the 1 st HY net profit of € 14.3 million was a new record high for the Group.
Several developments outside Europe were noted during the first six months of 2013 which affected Acomo's activities while some economic stabilization took place in Europe. Consumer confidence and consumption in the West remained at a stable although historically low level. In addition, price levels showed mixed trends. In general, prices remained below the high levels of 2011. However, price level developments by product group showed a diverse picture varying from, at times, steep declines to stabilization and for some products followed by further substantial increases.
The trend of increasing demand from countries with strong economic growth continued with climatic developments affecting harvests and traded volumes. In many cases our food commodities represent only a relatively small part of consumer end products. This has a stabilizing effect on sales and volumes. Erik Rietkerk: "Food is needed every day which creates constant demand. This provides Acomo with a certain degree of continuity. In the past six months, our subsidiaries have once again proven their excellent reputation and reliability which resulted in very successful months".
| In € million | HY 2013 | HY 2012 |
|---|---|---|
| Sales | 302,9 | 300,6 |
| Result from operations | 21,8 | 20,7 |
| Financial income and expenses | -1,3 | -1,6 |
| Corporate income tax | -6,2 | -6,0 |
| Net profit | 14,3 | 13,0 |
| Total shareholders' equity | 123,0 | 114,0 |
| Total Assets | 266,5 | 264,6 |
| Solvability % | 46,2 | 43,1 |
| Earnings per share (in €) | 0,617 | 0,559 |
| Interim dividend per share (in €) | 0,17 | 0,15 |
| Dividend pay out ratio % | 27,55 | 26,83 |
| Number of outstanding shares per 30 Juni ('000) | 23.258 | 23.248 |
| Shareholders' equity per share per 30 Juni (in €) | 5,29 | 4,90 |
| Return on equity, annualized % | 23,3 | 23,0 |
| Number of employees per 30 Juni | 560 | 480 |
| Operational cash flow | 24,3 | 21,7 |
| Effective tax rate % | 30,3 | 31,7 |
During HY 2013, sales increased slightly compared to HY 2012 to € 302.9 million (+ 0.8%) with average price levels decreasing slightly and higher volumes in various segments. The gross margin increased to 15.6% (HY 2012: 14.5%) due to continuous focus on value added. Operating expenses increased by 10.8% due to growth in various subsidiaries and due to the new production site in Texas, USA which became operational in November of 2012. Financial income and expenses decreased due to lower average investment in working capital combined with regular repayments of long-term loans. The effective corporate income tax rate decreased slightly to 30.3%. Net profit in HY 2013 compared to HY 2012 increased by € 1.3 million or 10.3% to € 14.3 million.
Rietkerk adds: "We are very pleased with the results coming from strong trading by our subsidiaries and continuous focus on value added services which is fully in line with our 'reliability of contracts' proposition. This implies that we always adhere to our contractual commitments. Our customers can rely on us".
The spices, nuts and dried fruits activities have once again contributed considerably to the consolidated results of the Group. Markets showed active trading levels. The demand for products was strong and price volatility was noticed in various market segments. Customers covered price risks and non-compliance risks with supply contracts through Acomo's subsidiaries. Operational cost levels remained stable and no significant unexpected losses occurred.
The activities relating to the production and distribution of confectionary seeds, especially sunflower seeds, grew strongly. The broad business proposition of Red River Commodities showed its strength. In a market with geographically shifting supply of sunflower seeds, Red River Commodities remained focused on delivering seeds with an above average quality combined with competitive pricing. Exports from North-America stabilized despite the fact that economic stability in the Mediterranean consumer countries has not yet been re-established. Demand and sales and of bird seed products grew significantly due to a long winter period. The Sunbutter® activities also grew steadily due to further market penetration and increasing demand for peanut free products. The new production facility in Lubbock, Texas contributed positively to the result of the first six months. The company will further optimize
production processes which are both complex and innovative for the industry. While several American agricultural regions experienced droughts in 2012, the year 2013 started with a combination of rain, low temperatures and an above average of natural disasters in the form of tornadoes which delayed the planting of seeds for the 2013 harvests. In some cases, fields remained unplanted. During the summer period, several regions were again hit by draughts. The consequences for the sunflower harvests and ultimately consumption are still unclear.
Our tea trading and blending activities had a slightly delayed start this year. Uncertainties surrounding the elections in Kenya, a very important country for the Van Rees Group, and political developments in major consumer countries such as Egypt and Pakistan led to challenges for the global tea market. Abundant rain led to large volumes of harvested tea in various countries. As a consequence, tea prices showed volatile behavior with declines followed by stabilization and by upward trends. The Van Rees Group continued its development of partnerships with suppliers and customers providing added value services as part of the value chain through the providing combinations of tea blending, transporting and storage. In addition, supplied with rain forest certified tea is supplied upon customers' requests.
Distribution and blending activities in food ingredients continued to grow with the very strong relationships with principals and customers once again proving their significance. These relationships are essential elements of the development of these activities in the coming years.
Besides business developments of our subsidiaries, the following developments are mentioned specifically in the context of this half year report:
"We remain focused on our Focus of Food strategy including investigating strategic opportunities for Acomo in interesting parts of the value chains. We are specifically interested in those parts where our companies can develop propositions together with suppliers or customers. Our activities in Texas and in Belgium are good examples of such initiatives", says Rietkerk.
The half year results were good, however are not a guarantee for the second half year. The recent developments in the Middle East combined with recurring tension in the Euro-area still reflect imbalances which require attention and indirectly affect worldwide trading. Climate changes such as an abundance of rain and draughts in the US and floods in Europe can also have an important impact on agricultural activities worldwide. Food safety and food regulation is a constantly reoccurring topic. Acomo seeks further growth and a higher stabilization of the results by diversifying the Group's activities, even amidst inherent unpredictable and uncontrollable market conditions. We have confidence in the experience and market knowledge of all our trading teams and are confident that 2013 will be another successful year for our shareholders and other stakeholders.
Management and Supervisory Board have decided to pay an interim-dividend of € 0.17 per share in cash (2012: € 0.15, + 13.3%) payable on 16 September 2013. The ex-dividend date is 2 September 2013.
For the HY 2013, Acomo will not publish a printed HY Report. The Half Year Press release will only be published on Acomo's website www.acomo.nl. This implies that this press release contains more information regarding the HY 2013 financials than in previous press releases relating to Half Year financials.
The HY 2013 results include several items with a non-recurring character which affect the comparison to the HY 2012 financials:
The total effect (after corporate income tax) on the HY 2013 net profit as compared to the HY 2012 results was rounded € 500,000 positive.
Van Rees Group and Red River Commodities report their results to Acomo in US Dollars. Acomo converts these results into the reporting currency of the Group, Euros. The average rate of the US dollar against the Euro during HY 2013 (1.313) decreased compared to HY 2012 (1.298) leading to a negative impact of € 0.1 million as compared to HY 2013 rates. The US dollar closing rate on 30 June 2013 was 1.301 being slightly stronger than the 1.319 on 31 December 2012 (effect on the balance sheet: € 1.9 million more assets or + 0.7%).
The net increase in tangible fixed assets compared to 31 December 2012 is mainly due to investments in a new storage and production facility in Ruddervoorde, Belgium. The main changes in working capital relate to lower inventories caused by regular seasonality effects, increased receivables due to June sales being higher than December sales and lower debts to creditors due to paying 2012 harvests to farmers in the beginning of 2013. In addition, the final 2012 dividends of € 12.8 million in May 2013, (€ 0.55 per share being the final dividend 2012) was paid. Long-term loans changed by regular repayments combined with new borrowings for the facility of Snick EuroIngredients in Ruddervoorde.
The HY 2013 cash flows can be summarized as follows:
As a result, working capital financing increased during HY 2013 by € 11.5 million to € 65.3 million as per 30 June 2013. In addition, the total available funding of working capital remained at the level of around € 150 million.
The Company's executive directors hereby declare that, to the best of their knowledge:
Rotterdam, 29 August 2013
| Erik Rietkerk | Jan ten Kate |
|---|---|
| CEO | CFO |
| Attachments | ||
|---|---|---|
| Page | 6 | Consolidated balance sheet per 30 June 2013 |
| Page | 7 | Consolidated profit and loss account HY 2013 |
| Page | 7 | Consolidated cash flow statement HY 2013 |
| Page | 8 | Consolidated statement of changes in shareholders' equity HY 2013 |
| Page | 8 | Consolidated statement of comprehensive income HY 2013 |
| Page | 9 | Segment reporting HY 2013 |
| Page | 10 | Notes to the interim financial statement |
| Page | 11 | Financial calendar 2013/2014 |
This half year 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) Mr. E. Rietkerk WTC, Beursplein 37, 10e etage Rotterdam info@acomo.nl
Tel. +31 10 4051195 Fax +31 10 4055094
Creative Venue public relations Mr. F. Witte, company spokesman Sophialaan 43 1075 BM Amsterdam f.witte@creativevenue.nl
Tel. +31 20 4525225 Fax +31 20 4528650
| (€ '000) before interim dividend | 30-6-2013 31-12-2012 | 30-6-2012 | |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible fixed assets Tangible fixed assets |
48.098 35.711 |
47.700 33.742 |
48.875 29.671 |
| Financial fixed assets | 257 | 257 | 297 |
| Deferred tax assets Total non-current assets |
842 84.908 |
119 81.817 |
21 78.864 |
| Current assets | |||
| Inventories | 108.505 | 117.178 | 114.476 |
| Accounts receivable | 67.718 | 60.845 | 64.269 |
| Other receivables | 3.914 | 4.492 | 4.123 |
| Derivatives | 239 | 518 | 1.314 |
| Cash at banks and in hand | 1.186 | 999 | 1.580 |
| Total current assets | 181.562 | 184.032 | 185.762 |
| Total assets | 266.470 | 265.849 | 264.626 |
| Equity and liabilities | |||
| Total shareholders' equity | 123.018 | 121.935 | 113.976 |
| Long-term liabilities and provisions | |||
| Provisions | 13.962 | 12.363 | 11.712 |
| Long-term debt | 10.025 | 16.134 | 17.025 |
| Total long-term liabilities and provisions | 23.987 | 28.497 | 28.737 |
| Current liabilities | |||
| Bank overdrafts | 65.345 | 60.896 | 79.046 |
| Creditors Derivatives |
21.910 348 |
33.426 850 |
24.566 594 |
| Other liabilities | 31.862 | 20.245 | 17.707 |
| Total current liabilities | 119.465 | 115.417 | 121.913 |
| Total equity and liabilities | 266.470 | 265.849 | 264.626 |
| Shareholders' equity per share | 5,29 | 5,25 | 4,90 |
| Diluted | 5,18 | 5,16 | 4,82 |
| (€ '000) | HY 2013 | HY 2012 |
|---|---|---|
| Sales | 302.891 | 300.560 |
| Cost of goods sold | -255.537 | -256.867 |
| Gross profit | 47.354 | 43.693 |
| Personnel costs | -16.435 | -14.785 |
| General costs | -7.795 | -6.891 |
| Depreciation charges | -1.286 | -1.357 |
| Total expenses | -25.516 | -23.033 |
| Result from operations | 21.838 | 20.660 |
| Interest income | 5 | 29 |
| Interest expenses | -1.086 | -1.474 |
| Other financial expenses | -192 | -166 |
| -1.273 | -1.611 | |
| Result before corporate income tax | 20.565 | 19.049 |
| Corporate income tax | -6.223 | -6.044 |
| Net profit | 14.342 | 13.005 |
| Earnings per share (in €) | ||
| Basic earnings per share | 0,617 | 0,559 |
| Diluted earnings per share | 0,605 | 0,552 |
| Consolidated cash flow statement HY 2013 | ||
| (€ '000) | HY 2013 | HY 2012 |
| Cash flow from operations | 24.304 | 21.678 |
| Net changes in working capital | -11.937 | 9.103 |
| Net changes in financing of working capital | 11.501 | -5.315 |
| Paid interest and taxes | -3.676 | -8.192 |
| Total cash generated from operations | 20.192 | 17.274 |
| Cash used for investments | -3.645 | -5.032 |
| Cash flow from financing | ||
|---|---|---|
| Dividend paid | -12.786 | -12.088 |
| Net changes in borrowings | -3.573 | 898 |
| Cash flow from financing | -16.359 | -11.190 |
| Net increase in cash | 188 | 1.052 |
| Cash at 1 January | 999 | 528 |
| Cash at 30 June | 1.187 | 1.580 |
| Share | Currency | |||||
|---|---|---|---|---|---|---|
| Share | premium | translation | Other | Retained | Total | |
| (€ '000) | capital | reserve | reserve | reserves | earnings | equity |
| Balance at 1 January 2012 | 10.461 | 45.377 | -860 | 783 | 56.153 | 111.914 |
| Net profit | - | - | - | - | 13.005 | 13.005 |
| Other comprehensive income | - | - | 1.253 | -159 | - | 1.094 |
| Employees share option plan | - | - | - | 51 | - | 51 |
| Final dividend 2011 | - | - | - | - | -12.088 | -12.088 |
| Balance at 30 June 2012 | 10.461 | 45.377 | 393 | 675 | 57.070 | 113.976 |
| Balance at 1 January 2013 | 10.461 | 45.377 | -2.210 | 703 | 67.604 | 121.935 |
| Impact new accounting policy pension provisions | - | - | - | -823 | - | -823 |
| - | - | |||||
| Net profit | - | - | - | - | 14.342 | 14.342 |
| Other comprehensive income | - | - | 585 | -358 | - | 227 |
| Issue of ordinary shares | 5 | 69 | - | - | - | 74 |
| Employees share option plan | - | - | - | 49 | - | 49 |
| Final dividend 2012 | - | - | - | - | -12.786 | -12.786 |
| Balance at 30 June 2013 | 10.466 | 45.446 | -1.625 | -429 | 69.160 | 123.018 |
| (€ '000) | HY 2013 | HY 2012 |
|---|---|---|
| Net profit | 14.342 | 13.005 |
| Exchange results foreign investments | 187 | 585 |
| Exchange rate results goodwill | 398 | 668 |
| Changes hedge reserves | -358 | -159 |
| Comprehensive income | 14.569 | 14.099 |
| Spices, | General | |||||
|---|---|---|---|---|---|---|
| nuts and | Food | costs and | ||||
| dried fruit | ingredients | Tea Edible seeds | eliminations | TOTAL | ||
| HY 2013 | ||||||
| Sales | 124.959 | 10.281 | 78.396 | 90.516 | -1.261 | 302.891 |
| Costs | -114.158 | -8.792 | -75.320 | -81.383 | -1.400 | -281.053 |
| Result from operations | 10.801 | 1.489 | 3.076 | 9.133 | -2.661 | 21.838 |
| Segment Assets | 71.168 | 9.396 | 58.793 | 80.534 | 46.579 | 266.470 |
| HY 2012 | ||||||
| Sales | 141.785 | 8.389 | 82.204 | 69.410 | -1.228 | 300.560 |
| Costs | -131.462 | -7.665 | -77.870 | -61.679 | -1.224 | -279.900 |
| Result from operations | 10.323 | 724 | 4.334 | 7.731 | -2.452 | 20.660 |
| Segment Assets | 82.241 | 6.643 | 55.400 | 72.728 | 48.640 | 265.652 |
| Sales per region (in € '000) | ||||||
| NL | EU other | USA | Other | TOTAL | ||
| HY 2013 | 35.661 | 119.856 | 108.031 | 39.343 | 302.891 | |
| HY 2012 | 33.890 | 138.630 | 85.480 | 42.560 | 300.560 |
The interim financial statements for the six months ended 30 June 2013 comprise the Company and its subsidiaries and have been prepared in accordance with International Financial Reporting Standards, IAS 34 'Interim Financial Reporting'. They do not contain all the information required for annual financial statements and should be read in conjunction with the financial statements as of 31 December 2012.
Except for the change described below, the accounting policies and rules and measurement of income used for the preparation of the interim financial statements are consistent with the financial statements 2012 (published on the website of the Company) and are in accordance with IFRS as adopted by the European Union.
The interim financial statements are unaudited.
As from 1 January 2013, the revised IFRS standard for pensions (IAS 19R) has been applied. Main impact is that all actuarial gains and losses related to the retirement benefit obligation are now recognized as they occur (elimination of the corridor approach). Simultaneously with the adoption of IAS 19R it was decided to present the net interest expense on employee benefit plans as part of net finance cost. This better reflects the actual pension costs (as part of the personnel expenses).
As a consequence of the application of IAS 19R, an effect of the change on two existing pension schemes was accounted for in the opening balance as at 1 January 2013. The impact on the consolidated balance sheet as at 31 December 2012 is as follows:
The impact on the HY 2013 consolidated income statement is not considered material. The same applies for HY 2012 and consequently no restatement of the HY 2012 consolidated income statement was made.
The mutations in equity are shown in the consolidated statement of changes in equity on page 8. In June 2013, Acomo issued 10,000 new shares under the Share Option Plan. On 30 June 2013 the number of shares outstanding were 23,257,576 (31 December 2012: 23,247,576).
The corporate governance policies of the Company, the risks related to the activities and the risk control and management systems of the Group are described in the annual financial statements 2012 (published on the website of the Company) and are unchanged, except as stated. The main risks and uncertainties remain applicable if the current financial year.
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(preliminary)
| 8 November 2013 | Trading update Q3 2013 |
|---|---|
| 20 February 2014 | Publication of 2013 annual figures (unaudited) |
| 18 March 2014 | Publication of Annual Report 2013 (on site) |
| 30 April 2014 | Annual General Meeting |
| 24 April 2014 | Trading update Q1 2014 |
| 31 July 2014 | Publication of 2014 half year results (unaudited) |
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