MARR — Interim / Quarterly Report 2015

Aug 3, 2015

Informazione Regolamentata n. 0765-14-2015		Data/Ora Ricezione 03 Agosto 2015 14:19:58	MTA - Star
Societa'	:	MARR
Identificativo Informazione Regolamentata	:	61683
Nome utilizzatore	:	MARRN01 - Tiso
Tipologia	:	IRAG 02
Data/Ora Ricezione	:	03 Agosto 2015 14:19:58
Data/Ora Inizio Diffusione presunta	:	03 Agosto 2015 14:34:59
Oggetto	:	MARR: The Board of Directors approves the results of the first half of 2015
Testo del comunicato

Vedi allegato.

MARR: The Board of Directors approves the results of the first half of 2015.

Increase in revenues and operating profits confirmed in the first six months:

• Total consolidated revenues of 697.9 million Euros (682.3 in 2014)
• Consolidated EBITDA of 47.2 million Euros (45.9 in 2014)
• Consolidated EBIT of 39.7 million Euros (38.8 of 2014)

The net consolidated result increased, reaching 23.6 million Euros (22.4 in 2014)

Rimini, 3 August 2015 – The Board of Directors of MARR S.p.A. (Milan: MARR.MI), the leading company in Italy in the sale and distribution of food products to the foodservice, today approved the half-year financial report as at 30 June 2015.

Main consolidated results of the first half of 2015

The total revenues in the first half-year amounted to 697.9 million Euros, an increase compared to 682.3 million Euros in 2014.

The operating profits also increased, with EBITDA of 47.2 million Euros (45.9 million in 2014) and EBIT of 39.7 million (38.8 million in 2014).

The net consolidated result in the first half-year amounted to 23.6 million Euros, an increase compared to 22.4 million in the same period of 2014.

The net trade working capital as at 30 June 2015 amounted to 220.4 million Euros, compared to 233.3 million as at 30 June 2014.

The net financial indebtedness amounted to 172.5 million Euros (195.4 million as at 31 March 2015) and, compared to 200.2 million Euros as at 30 June 2014, benefitted from the non-recourse (prosoluto) sale of trade receivables programme implemented as of the third quarter of 2014, the effect of which at the end of the first half of 2015 was 8.2 million.

The consolidated net equity as at 30 June 2015 reached 237.2 million Euros, compared to 226.2 million as at 30 June 2014.

Results for the first half of 2015 by sector of activity

At the end of the first six months, the sales of the MARR Group amounted to 685.6 million Euros (672.1 million in 2014), while those in the second quarter reached 395.2 million (385.7 million in 2014).

In particular, the sales in the first half to customers in the Street Market and National Account segments reached 555.4 million Euros (548.3 million in 2014), while those in the second quarter amounted to 326.2 million Euros (317.4 million in 2014).

The sales in the main segment of "Street Market" (restaurants and hotels not belonging to Groups or Chains) – in the context of a market tending towards recovery, with consumption (in quantity) which for "Hotels and IOut-of Home Food consumption", recorded an increase of about 1% in the

first five months of the year (Company estimates based on Confcommercio Studies office figures – July 2015) – reached 405.2 million Euros in the half-year (388.0 million in 2014), while those in the second quarter amounted to 250.3 million Euros (239.9 million in 2014).

Sales in the "National Account" segment (operators in Canteens and Chains and Groups) in the half-year amounted to 150.3 million Euros and, compared to 160.3 million in 2014, were affected by the sale on 31 March 2014 of the shareholding in Alisea (a company operating in catering tenders to hospital structures) which in the first quarter of 2014 had contributed with 3.8 million Euros in sales and by a selective approach – aimed at safeguarding the operating profitability – in direct supplies to Public Administrations, an approach which had already been started in the second half of 2014. In the second quarter, the National Account segment recorded sales of 75.9 million Euros (77.6 million in 2014).

The sales to customers in the "Wholesale" segment in the half-year amounted to 130.2 million Euros (123.8 million in 2014), of which 68.9 million in the second quarter (68.3 million in the same period of 2014).

Events subsequent to the first half of 2015

Last July, the condition precedent occurred for the payment of the balance of the price of the sale – which occurred on 31 March 2014 – by MARR of the shareholding in Alisea. This condition took into consideration the definitive awarding of significant tenders for catering services and, after its occurrence in the last ten days of July, MARR received as the balance for the price (including interest) the payment of a total amount of 1.7 million Euros, accounted for in the current third quarter.

Outlook

The performance of sales in July to customers in the Street Market and National Account segments was positive, enabling to further strengthen the increase of the first six months. In these initial months of the summer season, the reference market confirmed the signs of recovery already highlighted during the first few months of the year, also thanks to the EXPO event.

On the basis of the positive results of the first half-year, company management has confirmed its guidelines of: increasing the market share, maintaining the levels of profitability achieved and controlling the absorption of net trade working capital.

MARR (Cremonini Group), listed on the STAR segment of the Italian Stock Exchange, is the leading Italian company in the specialised distribution of food products to the foodservice and is controlled by Cremonini S.p.A..

With an organisation comprising more than 700 technical sales agents, MARR serves over 38,000 customers (mainly restaurants, hotels, pizza restaurants, holiday resorts and canteens), with an offer that includes over 10,000 food products, including seafood, meat, various food products and fruit and vegetables. The company operates nationwide through a logistical-distribution network composed of 34 distribution centres, 5 cash & carry, 4 agents with warehouses and about 750 vehicles.

In 2014, MARR achieved total consolidated revenues amounting to 1,441.4 million Euros, consolidated EBITDA of 101.8 million Euros and a Group net profit of 51.1 million Euros.

For more information about MARR visit the company's web site at www.marr.it

The manager responsible for preparing the company's financial reports, Antonio Tiso, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

***

It should be noted that the half-yearly financial report as at 30 June 2015, approved today by the MARR S.p.A. Board of Directors, will be made available by the end of today, together with the Report by the Independent Audit Firm, on the Investor Relations Section of the company website http://www.marr.it/it/bilanci, at the company headquarters and on the authorized storage system. .

***

The results of the first six months of 2015 will be illustrated in a conference call with the financial community, to be held today at 17:30 (CET), This presentation will be available in the "Investor Relations – Presentations" section of the MARR website (www.marr.it) from 17:15 today.

The speech in English of the presentation with a summary of the Q&A session will be published in the "Investor Relations – Presentations" (English version) section, where it will be available for 7 days from the morning of Tuesday, 4 August.

***

Luca Macario Antonio Tiso lmacario@marr.it atiso@marr.it mob. +39 335 7478179 tel. +39 0541 746803

Press contact Investor relations

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ALTERNATIVE PERFORMANCE MEASURES

In this press release certain non-IFRS measures are presented for purposes of a better understanding of the trend of operations and financial condition of the MARR Group; however, such measures should not be construed as a substitute for the operating and financial information required by IFRS.

Specifically, the non-IFRS measures presented are described below:

• EBITDA (Gross Operating Result): this economic indicator is not defined by the IFRS and used by the company's management to monitor and assess its operational performance. The management believes that the EBITDA is an important parameter for measuring the Group's performance as it is not affected by the volatility due to the effects of various types of criteria for determining taxable items, the amount and characteristics of the capital employed and the relevant amortization and depreciation policies. The EBITDA (Earnings before interest, taxes, depreciation and amortization) is defined as the business year Profits/Losses gross of amortizations and depreciations, write downs and financial income and charges, non recurrent items and income tax.
• EBIT (Operating Result): is an economic indicator of the operational performance of the Group. The EBIT (Earnings before interest and taxes) is defined as the business year Profits/Losses gross of financial income and charges, non recurrent items and income tax.
• Net Financial Position: used as a financial indicator of debts is represented by the total of the following positive and negative components of the Balance sheet:
• Positive short and long term components: cash and equivalents; items of net working capital collectables; financial assets; current financial receivables.
• Negative short and long term components: payables to banks; payables to other financiers, payables to leasing companies and factoring companies; payables to shareholders for loans.

Re-classified Income Statement¹

MARR Consolidated (€thousand)	30.06.15 (6 months)	%	30.06.14 (6 months)	%	% Change
Revenues from sales and services	679,759	97.4%	665,734	97.6%	2.1
Other earnings and proceeds	18,129	2.6%	16,610	2.4%	9.1
Total revenues	697,888	100.0%	682,344	100.0%	2.3
Cost of raw and secondary materials, consumables and goods sold	(577,557)	-82.8%	(559,246)	-82.0%	3.3
Change in inventories	27,793	4.0%	28,134	4.1%	(1.2)
Services	(77,220)	-11.1%	(80,444)	-11.8%	(4.0)
Leases and rentals	(4,440)	-0.6%	(4,653)	-0.6%	(4.6)
Other operating costs	(1,086)	-0.1%	(925)	-0.1%	17.4
Value added	65,378	9.4%	65,210	9.6%	0.3
Personnel costs	(18,133)	-2.6%	(19,315)	-2.9%	(6.1)
Gross Operating result	47,245	6.8%	45,895	6.7%	2.9
Amortization and depreciation	(2,428)	-0.4%	(2,341)	-0.3%	3.7
Provisions and write-downs	(5,137)	-0.7%	(4,750)	-0.7%	8.1
Operating result	39,680	5.7%	38,804	5.7%	2.3
Financial income	798	0.1%	1,187	0.2%	(32.8)
Financial charges	(4,934)	-0.7%	(5,986)	-0.9%	(17.6)
Foreign exchange gains and losses	(223)	0.0%	(89)	0.0%	150.6
Value adjustments to financial assets	0	0.0%	0	0.0%	0.0
Result from recurrent activities	35,321	5.1%	33,916	5.0%	4.1
Non-recurring income	0	0.0%	104	0.0%	(100.0)
Non-recurring charges	0	0.0%	0	0.0%	0.0
Profit before taxes	35,321	5.1%	34,020	5.0%	3.8
Income taxes	(11,681)	-1.7%	(11,590)	-1.7%	0.8
Total net profit	23,640	3.4%	22,430	3.3%	5.4
(Profit)/loss attributable to minority interests	0	0.0%	0	0.0%	0.0
Net profit attributable to the MARR Group	23,640	3.4%	22,430	3.3%	5.4

1 Data unaudited

Re-classified Balance sheet¹

MARR Consolidated (€thousand)	30.06.15	31.12.14	30.06.14
Net intangible assets	107,682	106,270	106,242
Net tangible assets	69,970	68,962	69,208
Equity investments in other companies	304	304	300
Other fixed assets	39,123	36,845	36,583
Total fixed assets (A)	217,079	212,381	212,333
Net trade receivables from customers	433,664	379,599	425,993
Inventories	144,453	116,366	128,728
Suppliers	(357,740)	(274,443)	(321,410)
Trade net working capital (B)	220,377	221,522	233,311
Other current assets	39,267	48,465	44,669
Other current liabilities	(26,151)	(23,688)	(24,277)
Total current assets/liabilities (C)	13,116	24,777	20,392
Net working capital (D) = (B+C)	233,493	246,299	253,703
Other non current liabilities (E)	(942)	(690)	(1,007)
Staff Severance Provision (F)	(10,846)	(10,960)	(10,880)
Provisions for risks and charges (G)	(29,102)	(16,066)	(27,774)
Net invested capital (H) = (A+D+E+F+G)	409,682	430,964	426,375
Shareholders' equity attributable to the Group	(237,179)	(254,280)	(226,202)
Shareholders' equity attributable to minority interests	0	0	0
Consolidated shareholders' equity (I)	(237,179)	(254,280)	(226,202)
(Net short-term financial debt)/Cash	3,879	(95,102)	(60,270)
(Net medium/long-term financial debt)	(176,382)	(81,582)	(139,903)
Net financial debt (L)	(172,503)	(176,684)	(200,173)
Net equity and net financial debt (M) = (I+L)	(409,682)	(430,964)	(426,375)

Re-classified Cash-flow statement¹

MARR Consolidated (€thousand)	30.06.15	30.06.14
Net profit before minority interests	23,640	22,430
Amortization and depreciation	2,428	2,341
Change in Staff Severance Provision	(114)	(662)
Operating cash-flow	25,954	24,109
(Increase) decrease in receivables from customers	(54,065)	(25,783)
(Increase) decrease in inventories	(28,087)	(28,024)
Increase (decrease) in payables to suppliers	83,297	47,076
(Increase) decrease in other items of the working capital	23,942	25,215
Change in working capital	25,087	18,484
Net (investments) in intangible assets	(1,496)	(6,324)
Net (investments) in tangible assets	(3,355)	(3,208)
Net change in financial assets and other fixed assets	(2,278)	372
Net change in other non current liabilities	1,007	892
Investments in other fixed assets	(6,122)	(8,268)
Free - cash flow before dividends	44,919	34,325
Distribution of dividends	(41,246)	(38,585)
Capital increase	0	0
Other changes, including those of minority interests	508	(1,782)
Casf-flow from (for) change in shareholders' equity	(40,738)	(40,367)
FREE - CASH FLOW	4,181	(6,042)
Opening net financial debt	(176,684)	(194,131)
Cash-flow for the period	4,181	(6,042)
Closing net financial debt	(172,503)	(200,173)

¹ Data unaudited