Earnings Release • Aug 26, 2022
Earnings Release
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Lievegem, 26th of August 2022 – 7:30 AM
As with all players in the food industry, the first half of the year was characterized by sharp inflation in the costs of raw materials, packaging and energy, as well as other costs. These price increases were passed-on to customers in a responsible and transparent manner, but with a delay. This delayed recharging translates into a drop in results compared to the first half of 2021.
This resulted in the following key results:
Half-year sales within the segment increased by EUR 33 million (+26.2%) compared to 2021. This increase can be attributed to the resumption of sales in the foodservice channel in post-Covid times and a solid demand for convenience products. With its core products, Ter Beke continues to focus on affordable, tasty and nutritious products for every consumer.
Moreover, there is a continued focus on innovation. Various new introductions were realized, including vegan meals for both retail and foodservice customers.
Ter Beke's UK operation, KK Fine Foods, won no less than six awards at the British Frozen Food awards ceremony, including 'Foodservice Product of the Year', 'Best New Meat Free Product' and 'Best New Fish Product'.
The half-year turnover within the processed meats segment decreased by EUR 2.1 million (-1%) compared to 2021, mainly due to the discontinuation of non-profitable contracts last year, where Ter Beke is now seeing the 'full year effect'. There is a growing interest in healthier recipes (e.g. less salt), better traceability and an increased demand for sustainable products.
Ter Beke will continue to respond to this, also in the context of the ESG (Environmental - Social - Governance) objectives.
Furthermore, Ter Beke sees an increase in the importance of, for example, the Nutri-Score and similar alternatives. Here too, Ter Beke assumes its role and works actively with its customers to further optimize the quality of its products and to adapt them to changing consumer requirements.
Ter Beke aims to achieve sustainable and profitable growth by supplying tasty and high-quality processed meats and ready meals in various European countries and by manufacturing in Belgium, the Netherlands, the UK, France and Poland.
Moreover, Ter Beke did not wait for the merger with Imperial - Stegeman to renew its strategy. Ter Beke is committed to innovation with the development of a range of vegetable products and makes sustainability part of its DNA. Taking a shareholding in the start-up company "Davai" illustrates this innovation and responds to changing consumer needs. Davai makes vegetable dumpling snacks that are currently sold in Belgium and the Netherlands. In addition to its foodservice sales, Davai also realized a first retail listing in the first half of 2022.
CEO Piet Sanders states at the end of the first half of the year: While our turnover has grown by 9% in the last six months, or about EUR 30 million, Ter Beke continues to make every effort to monitor the impact of high cost inflation with a view to sustainable profitable growth. Responsibly passing on costs to our customers is part of this. In addition, we will continue to focus on the continuous improvement of operational efficiency, product recipes and more innovations. Our investment in Davai - which develops and sells tasty vegetable dumplings - is a good illustration of our company's renewed strategy. We are also working on a concrete plan to become more and more sustainable in everything we do. Hopefully, the planned merger with Imperial - Stegeman can take place, which will only enable us to achieve our ambitions even faster for our employees, customers and consumers."
When the intention of merging with Imperial - Stegeman materializes, Ter Beke will be able to accelerate this existing ambition and will be able to offer an even more varied range of snacks and vegetarian products as well as more branded products and to expand its geographical reach.
| Income statement in 000 EUR | |||
|---|---|---|---|
| 30/06/22 | 30/06/21 | ∆ % | |
| Revenue (net turnover) | 372 646 | 341 803 | 9,0% |
| Underlying EBITDA | 17 781 | 27 114 | -34,4% |
| EBITDA | 16 882 | 21 700 | -22,2% |
| Underlying operating results (UEBIT) | 3 814 | 12 711 | -70,0% |
| Result of operating activities (EBIT) | 2 915 | 7 297 | -60,1% |
| Net financing costs | -916 | -2 277 | -59,8% |
| Result of operating activities after net financing costs (EBT) | 1 999 | 5 020 | -60,2% |
| Taxes | -528 | -3 495 | -84,9% |
| Result after tax before share in the result of enterprises | 1 471 | 1 525 | -3,5% |
| accounted for using the equity method | |||
| Earnings after taxes (EAT) | 1 471 | 1 525 | -3,5% |
| Profit in the financial year: share third parties | 70 | -83 | |
| Profit in the financial year: share group | 1 401 | 1 608 | |
| Financial position in 000 EUR | |||
| 30/06/22 | 31/12/21 | ||
| Balance sheet total | 389 499 | 381 805 | 2,0% |
| Equity | 115 094 | 121 445 | -5,2% |
| Net financial debts | 74 636 | 73 763 | 1,2% |
| Equity/Total assets (in %) | 29,5% | 31,8% | |
| Gearing Ratio | 64,8% | 60,7% | |
| Key figures in EUR per share | |||
| 30/06/22 | 30/06/21 | ||
| Number of shares | 1 794 217 | 1 767 281 | |
| Average number of shares | 1 794 217 | 1 767 281 | |
| Net cash flow | 8,60 | 9,01 | -4,5% |
| Earnings after taxes | 0,78 | 0,91 | -14,2% |
| EBITDA | 9,41 | 12,28 | -23,4% |
Since the cost price of the commodities used in the group's production process is highly dependent on world prices and these in turn are highly dependent (among other things) on the EUR/USD ratio, the developments in the war in Ukraine and climatological conditions, it is impossible at present to make a good estimate of the results for the future.
The Ter Beke group handles the increase in the price of its products in a responsible manner and also pays careful attention to the cost of energy and raw materials in line with its processes and governance. The group continues to focus on transparently passing on the exceptional cost inflation that characterizes the market.
The possible merger with Imperial - Stegeman has not been and will not be taken into account before 2022. If approved, synergies will be worked out from the time of closing and taken into account over time.
The group half-yearly financial report can be found at: www.terbeke.com in the Investor Relations module.
The half-yearly financial report shall include the condensed consolidated financial statements, prepared in accordance with IAS 34, the auditor's report without comment on its limited review and the other reports required by law.
General Shareholders' Meeting 25 May 2023
Ann De Jaeger General Counsel & Corporate Affairs Director Tel. +32 9 370 13 17 [email protected]
Piet Sanders* Yves Regniers° CEO CFO Tel. +32 9 370 13 17 Tel. +32 9 370 13 17 *permanent representative Leading for Growth BV °permanent representative ESROH BV
Annual Results 2022 by 24 February 2023 before market opening
Annual Report 2022 at the latest on 28 April 2023
Ter Beke is an innovative European fresh food group headquartered in Belgium, which commercializes a wide range of highquality fresh food products and related services in many European countries. Today, Ter Beke mainly specializes in the production and sale of processed meats and fresh ready meals from 12 industrial sites in Belgium, the Netherlands, France, Poland and the United Kingdom. Ter Beke employs approximately 2,750 people. Ter Beke exists for almost 75 years, is listed as family company on Euronext Brussels since 1986 and realized a turnover of EUR 697 million in 2021.
More info about Ter Beke can be found on www.terbeke.com.
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