Bel: First quarter 2020 sales
Presse Release
Suresnes — April 20, 2020 at 6
p.m.
Bel
First quarter 2020 financial
information
Sales
·First quarter sales increase 12.2% on published
basis and advance 11.0% organically
·Half the growth was driven by
exceptional sales at major retail chains in the second half of
March, in connection with the global health crisis |
Amounts are expressed in millions of euros and
rounded off to the nearest million. Ratios and variances are
calculated based on underlying amounts, not rounded off
amounts.
In Q1 2020, Bel generated consolidated sales of
€909 million, up 12.2% on a published basis versus €810 million in
the prior-year period. The appreciation of the U.S. dollar against
the euro accounted for the lion’s share of the foreign exchange
effect, which positively impacted consolidated sales by 1.2% or €9
million. Excluding the foreign exchange impact, Bel’s consolidated
sales advanced 11.0% organically y-o-y in Q1 2020.
Bel estimates that the environment sparked by
the global Covid-19 pandemic accounted for about half the reported
Q1 sales growth. In March, the company observed an increase in
sales due in part to stockpiling and daily household food purchases
as a result of lockdown measures and the closure of restaurants and
catering services. All company brands in all geographies
contributed to the growth, with the exception of markets in the
Levant region, which remains in a recession.
Excluding the impact of the pandemic, organic
sales growth was very dynamic and fueled by the strong fundamentals
of the company's sales policy in Europe and preparations for the
Easter and Ramadan holidays.
The sales breakdown by market segment is as
follows:
|
First quarter |
(in millions of euros) |
2020 |
2019 |
% change |
% organic growth |
|
|
|
|
|
Global
Markets |
747 |
690 |
+8.3% |
+7.3% |
New
Territories |
162 |
120 |
+34.6% |
+32.4% |
|
|
|
|
|
Total |
909 |
810 |
+12.2% |
+11.0% |
Global Markets
Bel reported strong sales momentum in the first
two months of the year in global (mature) markets, prior to the
March sales acceleration that arose from consumer lockdowns enacted
in most countries. Bel still has a weak presence in the catering
market, which was particularly hard hit by the pandemic.
In Europe, 2020 began with buoyant sales growth,
particularly in France and Germany, before the sales acceleration
seen in all markets in March.
The contraction in the Levant markets since the
second half of 2019 accounts for the weak 2.3% Q1 sales growth
reported in the Middle East, Greater Africa region.
In North America, sales accelerated in March as
governments began rolling out lockdown measures.
New Territories
Sales of all MOM products and brands in the New
Territories market segment were particularly strong in the United
States and France.
Sales by geographic region
|
|
3 months |
|
millions of euros |
|
2020 |
2019 |
% change |
% organic growth |
Europe |
|
473 |
430 |
+10.1% |
+9.8% |
Middle East, Greater
Africa |
|
199 |
192 |
+3.2% |
+2.3% |
Americas,
Asia-Pacific |
|
237 |
188 |
+26.3% |
+22.9% |
Total |
|
909 |
810 |
+12.2% |
+11.0% |
2020 results outlook
Against the backdrop of a global pandemic and
economic crisis, and in view of the strong volatility in global
demand expected to prevail in the months ahead, Bel is unable to
provide a clear outlook at this time. The first weeks of April
indicate a return to more normal consumer purchasing patterns,
although coming trends in consumer purchasing remain uncertain.
Bel continues to monitor the situation very
closely in order to adapt its response as the pandemic evolves.
As a major food sector player, Bel fully assumes
its duty to do everything possible to ensure the continuity of its
operations.
To date, the company's production sites continue
to operate, with mobilized and committed teams. Since the beginning
of the pandemic, Bel has strengthened its safety procedures and
health rules to ensure the health and safety of all its employees,
in particular by implementing the strictest health and
precautionary measures at all production sites, as noted in the
company's March 31st and April 9th press releases.
Along with its production teams, partner farmers
and suppliers, Bel is doing everything to continue its operations
and to participate in the collective effort to uphold the food
supply chain.
The company has:
- increased its food and packaging raw material inventories to
ensure production continuity,
- taken measures to ensure the supply of raw materials to its
plants and products to its retail partners,
- established plans for operations continuity at its plants,
- adapted its production lines to best meet the needs of
consumers during the lockdown period,
- adapted its supply chain to ensure that products are delivered
to market under the best conditions.
Bel will also continue to evolve its
distribution methods and product offerings with agility, to
accommodate the new consumer trends expected to result from these
unprecedented times in the markets where it operates.
Bel's financial position remains healthy, with
strong liquidity both in terms of cash and untapped credit lines.
As a reminder, at December 31, 2019, Bel had €403 million in
surplus cash and cash equivalents, with just €30 million in
outstanding NEU CP commercial paper, and €820 million in untapped
credit lines maturing in 2023 and 2024.
Dividend cut
In view of the Covid-19 pandemic, the Board of
Directors meeting today voted to lower the 2019 dividend initially
proposed by the March 11 Board of Directors, reducing it by nearly
30% versus the dividend paid out for the 2018 financial year. A
dividend of €3.50 per share, with an ex-dividend date on May 20 and
payable as of May 22, 2020, will be proposed for approval by the
Annual General Meeting (AGM) scheduled for May 14, 2020. The
conditions for the AGM will be provided in a separate, dedicated
press release.
With a long-term commitment to champion
healthier and responsible food for all embodied by its new "For
All. For Good" signature, Bel is fully in sync with a sustainable
and profitable growth model.
Bel's financial performance indicators
The Group uses non-IFRS financial performance
indicators internally and for its external communication. These
non-IFRS indicators are defined below:
Organic growth corresponds to
reported sales growth, excluding impacts from foreign exchange
fluctuations and changes in the scope of consolidation, i.e. on a
constant structure and exchange rate basis. The organic
growth rate is calculated by applying the exchange rate
for the prior year period to the current year period.
This press release may contain forward-looking
statements. Such trend and/or target information should in no way
be regarded as earnings forecast data or performance indicators of
any kind. This information is by nature subject to risks and
uncertainties that may be beyond the Company's control. A detailed
description of these risks and uncertainties is provided in the
Company's Universal Registration Document, available at
(www.groupe-bel.com). More comprehensive information about the Bel
Group can be found in the "Regulatory Information" section of the
www.groupe-bel.com website.
About Bel
The Bel Group is a world leader in branded
cheese and a major player in the healthy snack market. Its
portfolio of differentiated and internationally recognized brands
include such products as The Laughing Cow®, Kiri®, Mini Babybel®,
Leerdammer®, Boursin®, Pom’Potes®, and GoGo squeeZ®, as well as
some 20 local brands. Together, these brands helped the Group
generate sales of €3.4 billion in 2019.
Some 12,400 employees in some 30 subsidiaries
around the world contribute to the deployment of the Group's
mission to champion healthier and responsible food all. Bel
products are prepared at 32 production sites and distributed in
nearly 120 countries.
www.groupe-bel.com
------------Public
relations
Bel Group – Agence BCWAlice Dalla Costa / Cécile
Pochard alice.dalla-costa@bcw-global.com /
cecile.pochard@bcw-global.com +33 (0)1 56 03 12 26 / +33 (0)1 56 03
12 95
- Bel_2020_Financial Information_Q1_US