Strong international performances; domestic market declines.

Transcription

1 PRESS RELEASE LA DORIA: Board of Directors approves 2018 Half-Year Report. Results in line with expectations: revenues up thanks to significant increase in volumes sold, alongside stable profitability and in spite of heightened market competition. Strong international performances; domestic market declines. Major four-year investment plan launched, with approx. Euro 115 million of funding to be deployed to expand production capacity, boost industrial and logistics efficiency and restructure Group facilities, ensuring continued revenue and margin growth. Consolidated revenues up 2.5% to Euro million (Euro million in H1 2017). At like-for-like exchange rates revenues +3.7%; EBITDA of Euro 24.4 million, in line with Euro 24.5 million in H1 2017; EBITDA margin decreases from from 7.2% to 7%; EBIT of Euro 18.1 million, up 7.7% (Euro 16.8 million in H1 2017); EBIT margin increases from 4.9% to 5.2%; Net Profit of Euro 13.1 million, up 6.5% (Euro 12.3 million in H1 2017). Net Debt reduces to Euro 64.4 million (Euro 98.1 million at ). Gearing at 0.28 from 0.43 at December 31, *** Angri (SA), September 13, The Board of Directors of La Doria S.p.A., the leading tomatobased products, sauces, pulses and fruit juices for supermarket private labels market Group, approved in Angri today the 2018 Half-Year Report. The La Doria Group performance for the first half of 2018, in line with expectations, featured a satisfying revenue improvement and stable margins, despite a persistently and highly challenging market and the pressure imposed by the Supermarkets. The Group delivered excellent performances overseas to boost sales volumes, while the domestic market contracted, partly due to the loss of a number of discount channel orders amid heightened price competition.

2 The manufacturing operations of the parent company La Doria S.p.A. and the subsidiary Eugea Mediterranea S.p.A. saw increased sales volumes, alongside a stable gross margin - despite the drop in sales prices - essentially due to the increase in quantities sold and improved industrial efficiencies. Trading activities by the subsidiary LDH (La Doria) Ltd on the English market saw significantly improved sales, due to strong volume growth and a slight increase in prices due to the inflationary effects from the weakening of Sterling post-brexit, which continues to hit (although to a reduced extent) the main products imported in Euro and/or Dollars and sold by the company on the British market. Operating margins were broadly stabile on the first half of 2017, despite continued pressure from the English Supermarkets amid inflation and heightened competition. Group results for the first half of 2018 were impacted by currency developments, i.e. unfavourable Euro-Sterling movements on the results of LDH with the weakening of Sterling. H Consolidated Results Consolidated revenues were Euro million, up 2.5% on Euro million in the same period of the previous year. At like-for-like exchange rates, revenues would amount to Euro million (+3.7%). Good Red line and Pulses and Vegetable line performances, with like-for-like exchange rate growth of 4.4% and 2.8% respectively. Sauces line stable, with good volume growth eroded by price decreases. Other line (trading) sales also significantly increase (+12.9% at like-forlike exchange rates). Group revenues were generated by Pulses and vegetables for 27%, Tomato-based products for 22%, Sauces for 12%, Fruit for 10% and Other lines (trading) for 29%. Exports accounted for 80.3% of sales, increasing 6.8% at like-for-like exchange rates, with the domestic market accounting for 19.7% and sales down 7.4% The principal profit margins at consolidated level were: EBITDA of Euro 24.4 million, compared to Euro 24.5 million in H EBITDA margin reduces to 7% from 7.2% in H1 2017; EBIT of Euro 18.1 million, compared to Euro 16.8 million in H EBIT margin of 5.2%, from 4.9% in H1 2017; Net Profit of Euro 13.1 million compared to Euro 12.3 million in the first half of 2017.

3 The key balance sheet figures at consolidated level were: net financial position was a debt position of Euro 64.4 million, reducing on Euro 98.1 million at December 31, 2017 (Euro 73.7 million at June 30, 2017); net equity of Euro million, an increase on Euro 227 million at December 31, 2017 (Euro million at June 30, 2017); debt/equity ratio of 0.28, from 0.43 at December 31, 2017 (0.35 at June 30, 2017). H Parent Company Results The sales of the Parent Company La Doria S.p.A. in H amounted to Euro million, substantially stable (-0.4%) on Euro million in H EBITDA was Euro 19.2 million, in line with H1 2017, while EBIT amounted to Euro 13.4 million compared to Euro 12 million in H EBITDA margin and EBIT margin respectively at 8.9% and 6.2%, against 8.8% and 5.5% in H The net profit was Euro 11.8 million, up Euro 11 million in the first half of The financial debt decreased to Euro 52.9 million from Euro 80.1 million at December 31, 2017 (Euro 63.5 million at June 30, 2017). Net equity amounted to Euro million, against Euro million at December 31, 2017 and Euro million at June 30, Outlook Our markets are again this year highly competitive, as exponentially has been the case over recent years with the growing negotiating power of the major Supermarkets. The proliferation of Discount stores globally - with particularly aggressive pricing policies - the continued merging of the distribution giants, partnership agreements and the creation of purchasing groups, has increased the pressure on suppliers, particularly in the United Kingdom and also as a result of Brexit and the effects from a weakening Sterling. The company in this environment again in the second half of the year will focus on gaining market share through greater sales volumes, while leveraging also on efficiencies in addition will be the year in which the La Doria Group lays the foundations to continue developing over the coming years two priority plans - driving revenues and improving margins. Therefore, in the first half of the year a major four-year investment plan of approx. Euro 115 million was launched to boost production capacity, principally for the higher added value and potentially significant growth rate product categories (such as ready-made sauces). The Plan will target, further to the restructuring of Group industrial sites, improved industrial and logistics efficiency, with an eye on becoming even more cost competitive. The major investment plan which we launched in the first six months of 2018 stated Chairman and CEO Antonio Ferraioli - will further consolidate our competitive advantages. Our winning factors such as high quality and service standards, the capacity to produce very significant volumes at competitive prices, a corporate governance system based on best practice and an ongoing commitment to sustainable and responsible development separate us from the

4 competition. We will draw upon these strengths to even further improve long-term relations with the major Supermarket Distributors and ensure that we continue to be a leading international private label product supplier. La Doria, a company listed on the STAR segment of Borsa Italiana, is the leading Italian producer of processed pulses and tomato-based products (peeled and chopped) and second for fruit juices and beverages. With the acquisition of the Pa.fi.al Group, La Doria has become the leading Italian producer of private label ready-made sauces and among the leaders in Europe. Revenues in 2017 totalled Euro million, of which 90% generated by the private label segment (retail chain brands), with customers such as Carrefour, Auchan, Selex and Conad in Italy and Tesco, Sainsbury, Morrisons and Waitrose on foreign markets, which represent the main commercial outlet for the Group. The executive officer for financial reporting, Dr. Alberto Festa, declares in accordance with Article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in the present press release corresponds to the underlying accounting documents, records and accounting entries. The reclassified balance sheet and income statement of the La Doria Group and of La Doria S.p.A. at are attached to the present press release. Contact: Patrizia Lepere Investor & Media Relations Manager La Doria S.p.A. Tel. 081/ Cell.: 340/ patrizia.lepere@gruppoladoria.it Website:

5 LA DORIA GROUP - condensed consolidated balance sheet In accordance with EU/IFRS in thousands of Euros 30/06/ /12/2017 Trade receivables Inventories Other current accounts receivable Total current assets Trade payables Other current accounts payable Total current payables WORKING CAPITAL Intangible assets - net Property, plant and equipment-net Equity investments in associates Other assets TOTAL NON-CURRENT ASSETS Non current liabilities Reserve for employee termination benefit and other reserves Total non current liabilities NET INVESTED CAPITAL Cash and cash equivalents (82.275) (66.691) Short-term borrowings Medium and long-term borrowings NET CASH POSITION Group Shareholders' Equity Shareholders' Equity pertaining to minority interest SHAREHOLDERS' EQUITY

6 LA DORIA GROUP - reclassified consolidated income statement In accordance with EU/IFRS in thousands of Euros 30/06/ /06/2017 Revenues ,0% ,0% Changes in inventories of work in progress and semifinished and finished goods (40.423) -11,6% (29.520) -8,7% Other income ,4% ,8% Production value ,9% ,1% Operative expenses ,3% ,2% Value added ,6% ,9% Labour costs ,6% ,7% EBITDA ,0% ,2% Amortisation and depreciation expenses ,8% ,2% EBIT ,2% ,9% Financial income and expenses, net (809) -0,2% (1.094) -0,3% Exchange gains (losses) 844 0,2% ,3% Profit/(loss) from operating activities ,2% ,0% Gain on discontinued operations 0 0,0% 0 0,0% Profit (loss) before tax ,2% ,0% Income taxes ,4% ,3% Net profit (loss) ,8% ,6% of which Group ,8% ,6% of which minority interest (10) 0,0% (8) 0,0%

7 LA DORIA SPA - condesed balance sheet In accordance with EU/IFRS in thousands of Euros 30/06/ /12/2017 Trade receivables Inventories Other current accounts receivable Total current assets Trade payables Other current accounts payable Total current payables WORKING CAPITAL Intangible assets - net Property, plant and equipment-net Equity investments in associates Other assets TOTAL NON-CURRENT ASSETS Non current liabilities Reserve for employee termination benefit and other reserves Total non current liabilities NET INVESTED CAPITAL Cash and cash equivalents (64.722) (51.087) Short-term borrowings Medium and long-term borrowings NET CASH POSITION Group Shareholders' Equity Shareholders' Equity pertaining to minority interest SHAREHOLDERS' EQUITY

8 LA DORIA S.p.A. - reclassified income statement In accordance with EU/IFRS in thousands of Euros 30/06/ /06/2017 Revenues ,0% ,0% Changes in inventories of work in progress and semifinished and finished goods (30.474) -14,1% (31.917) -14,7% Other income ,3% ,7% Production value ,2% ,0% Operative expenses ,1% ,0% Value added ,1% ,0% Labour costs ,2% ,1% EBITDA ,9% ,8% Amortisation and depreciation expenses ,7% ,3% EBIT ,2% ,5% Income from equity investments ,3% ,3% Financial income/(charges) (864) -0,4% (1.103) -0,5% Exchange gains (losses) 368 0,2% 941 0,4% Profit/(loss) from operating activities ,3% ,8% Gain on discontinued operations 0 0,0% 0 0,0% Profit (loss) before tax ,3% ,8% Income taxes ,8% ,7% Net profit (loss) ,5% ,1%