PRESS RELEASE LA DORIA announces 2014 preliminary consolidated results and 2015-2017 Three-Year Plan. 2014 Preliminary consolidated results Following on from two very strong years, in 2014 the Group again delivered significant growth which saw - despite the still challenging global economy featuring a reduction in household consumption, including food products - results ahead of expectations, with revenues further increasing and double-digit profitability growth. Consolidated revenues total Euro 631.4 million, +4.5% (Euro 604.4 million in 2013). EBITDA of Euro 59.9 million, +38% (Euro 43.4 million in 2013). EBIT of Euro 48.1 million, +54% (Euro 31.3 million in 2013). Net Profit of Euro 25.4 million, +81.4% compared to a normalised Group Net Profit of Euro 14 million in 2013. Net Debt increases to Euro 138.2 million, from Euro 108.5 million at 31/12/2013, following the recent acquisition of the Pa.fi.al Group. Debt/EBITDA from 2.5 to 2.3 2015-2017 Three-Year Plan Key strategic objectives: Further growth on the domestic and international private label markets. Grow market share of own brands in completion of the Supermarket Chain private label offer. Invest in the development of the premium market segment. Change product mix towards new higher added value products. Expand the product line with innovative low environmental impact packaging. Increase the company margin and reduce volatility. Achieve sustainable growth from a financial viewpoint. 2017 Targets: Revenues of Euro 777 million (CAGR 2014-2017 +7.2%) EBITDA of Euro 79.3 million with an EBITDA margin of 10.2% (CAGR 2014-2017 + 10%) EBIT of Euro 64.9 million with an EBIT margin of 8.3% (CAGR 2014-2017 + 10,5%) Group net Profit of Euro 35.7 million (CAGR 2014-2017 +12%) Gearing of 0.3 and Debt/Ebitda ratio of 1. Angri (SA), February 24, 2015 - The Board of Directors of La Doria S.p.A., leader in the production of tomato-based products, pulses and fruit juices for supermarket private labels, today reviewed the currently unaudited 2014 Preliminary results. The results will be considered for approval by the Board of Directors on March 13, 2015. The Board also approved the 2015-2017 Three-Year Plan.
2014 Preliminary Consolidated Results Following on from two very strong years, in 2014 the Group again delivered significant growth which saw - despite the still challenging global economy featuring a reduction in household consumption, including food products - results ahead of expectations, with revenues further increasing and double-digit profitability growth. Consolidated revenues amounted to Euro 631.4.million, up 4,5% on Euro 604.4 million in 2013. Revenue growth was driven by the international markets (+4.3%) and the tomato-based products (+9.6%) and pulses and vegetables (+8.7%) lines. Key Results: EBITDA of Euro 59.9 million (+38.), compared to Euro 43.4 million in 2013. The EBITDA margin increased to 9.5% from 7.2% in 2013; EBIT amounted to Euro 48.1 million (+7.6%), compared to Euro 31.3 million in 2013. The EBIT margin amounted to 7.6% compared to 5.2% in the previous year; the Group Net Profit amounted to Euro 25.4 million, growing 63.9% on Euro 15.5 million in 2013, which benefitted from extraordinary income of Euro 1.5 million relating to the deduction for IRES purposes of IRAP on the cost of labour for the years 2008-2012. The Group Net Profit in 2014 therefore improved 81.4% on the normalised Group Net Profit for 2013 of Euro 14 million. The minority share amounted to Euro 5 million compared to Euro 5.7 million in 2013. Key Financial Highlights: The Net Debt increased to Euro 138.2 million, from Euro 108.5 million at December 31, 2013, following the recent acquisition of the Pa.fi.al Group; Shareholders equity of Euro 188,4 million compared to Euro 153,3 million at 31.12.2013. The 2014 results were principally achieved due to the Group s ability to transfer the increased costs of a number of agricultural raw materials onto sale prices and the reduced procurement prices of some ingredients, packaging materials and energy. Improved industrial efficiency and fixed cost absorption due to higher production volumes also contributed, in addition to the growth of the higher margin lines. The 2014 consolidated income statement results include also the newly acquired Pafial Group for the period 19.11.2014 to 31.12.2014, which, given the restricted time period, contributed only marginally (revenues: Euro 8.3 million, EBITDA: Euro 0.9 million, Net profit: Euro 0,5 million). At net equity level, the 2014 preliminary results consolidate the net profit of the Pafial Group of Euro 4.4 million.
2015-2017 Three-Year Plan The 2015-2017 Three-Year Plan was based on current economic forecasts and focuses on the core business of the Company - the production of private label processed vegetable products a sector in which the group enjoys consolidated market leadership. The guidelines were drawn up taking account of the overall market and its outlook, thus considering the following market trends for the coming years: Uninterrupted development of the private labels (PL): Although the PL share remained stable in many countries in 2014 due to very high levels of branded products promotion, growth is forecast for the future. The Supermarket private labels are shifting their market positioning, differentiating their offer with a focus on the higher value segments. The future of PL will be driven not just by savings and quality, but particularly through innovation and segmentation. The premium and organic segments will therefore lead this drive. The private labels continue to expand in consolidated countries such as the UK and Germany, thanks to the continual innovation by supermarkets, in addition to discount growth. Strong performance expected also in the USA, thanks to a repositioning towards the premium segment. In Italy, private label market share is still among the lowest in Europe. Demand for quality and value will remain high thanks to the structural change in the consumer s outlook, in addition to the segmentation strategies of the supermarkets, which through their own brands engender customer loyalty and improve profit margins. Increasing international demand for Made in Italy Food The demand for typical Italian food products continues to grow throughout the world. Average annual Italian export growth of 4.3% is forecast over the coming years. The most promising markets for Made in Italy food will be, in addition to the traditional markets in the United States and the UK, China, the Middle East and Eastern Europe. The principal objectives of the Group s Three-Year Plan are as follows: Further growth on the domestic and international private label market. Grow market share of our brands in completion of the Supermarket Chain private label offer. Invest in the development of the premium market segment. Change product mix towards new higher added value products. Expand the product line with innovative low environmental impact packaging. Increase the company margin and reduce volatility. Achieve sustainable growth from a financial viewpoint. The objectives of the plan will be realised through the implementation of the following key strategic guidelines which the Company will focus on in the coming three-year period: Further growth on foreign markets which the Group leads (UK, Japan, Australia and Germany) through an improved offer with new products Win new market share in countries in which the Group is under-represented (United States and France)
Development on new and emerging markets (China, South-East Asia, Saudi Arabia and UAE) Growth on the ready-made sauces market following the recent acquisition of the Pafial Group, the leading Italian producer of private label ready-made sauces and among the leaders in Europe Further development of the domestic private labels market through becoming a leading tomato-based product market player, increasing pulse market share, developing ready sauces and improving the share of the newly acquired Althea and Bella Parma brands Launch new higher value products and expand lines with innovative low environmental impact packaging Increase the proportion of the higher added value and service content lines and nonseasonal lines Further Purchasing area efficiencies Energy efficiency and sustainable development Continued operating efficiency improvement In the 2014-2017 three-year period, annual average revenue growth of 7.2% is forecast to Euro 777 million, with an EBITDA of Euro 79.3 million in 2017 (10% average annual growth). Average annual EBIT growth to 2017 is estimated at 10.5% (to Euro 64.9 million), with Group net profit to grow to Euro 35.7 million (12% average annual growth). The debt position is expected to drop to Euro 81.1 million by the end of 2017, with Gearing at 0.3 and a Debt/Ebitda ratio of 1. In the coming weeks, management will present the 2014 preliminary consolidated results and the 2015-2017 Three-Year Plan during the roadshows planned for London, Milan and Paris. La Doria, a company listed on the MTA 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 recent 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 2014 totalled Euro 631.4 million, of which approximately 90% generated by the private label segment (retail chain brands), with customers such as Carrefour, Auchan, Selex and Conad in Italy and Tesco, Sainsbury and Waitrose on foreign markets, which represent the main commercial outlet for the Group. An outline of the 2015-2017 business plane is attached to the current press release. Contact: Patrizia Lepere Media Relations Manager 081/5166260 / cell. 340/9673931 Email: IR@gruppoladoria.it, Website: www.ladoria.it
2015-2017 THREE-YEAR PLAN Income Statement 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cagr Euro millions Prelim. results (E) (E) (E) 2014-2017 Revenues 448,2 445,9 443,6 484,3 578,9 604,4 631.4 725 750 777 7.2% Value added 70,5 93,5 74,3 67,9 77,1 83,2 103.8 125.2 130 136 9.4% EBITDA 33,6 58,2 39,4 31,0 36,6 43,4 59,9 70,6 74,3 79.3 10,0% 7.5% 13.1% 8.9% 6.4% 6.3% 7.2% 9.5% 9.7% 9.9% 10,2% EBIT 20,9 40,0 27,4 18,3 25,5 31,3 48.1 56,1 59,9 64,9 10.5% 4.7% 9.0% 6.2% 3.8% 4.4% 5.2% 7.6% 7.7% 8.0% 8,3% Profit before taxes Net Profit of which minority interest Group Net profit Adj. Group net profit 10,7 34,4 21,9 14,5 20,3 29,1 44,2 49,7 55,8 61.2 11.5% 5,7 19,8 13,8 8,6 12,6 21,2 30,4 32,8 36,7 40,5 10,0% 3,2 4,3 2,9 4,5 4,8 5,7 5,0 4,5 4,6 4,8 2,5 15,5 10,9 4,1 7,8 15,5 25,4 28,2 32,2 35,7 2,5 15,5 10,9 4,1 7,8 14,0 25,4 28,2 32,2 35,7 12,0%
2015-2017 THREE-YEAR PLAN Balance Sheet 2008 2009 2010 2011 2012 2013 2014 (prelim. res.) 2015 (E) 2016 (E) 2017 (E) Euro millions NWC 36.3% 31.8% 32.0% 32.4% 28.6% 29.6% 30% 29.1% 29.1% 29.1% % CAPEX 10,7 12,1 4,5 22,0 11,6 8,0 75,1 14,0 12,0 10 FCF - 27,1 44,2 21,4-15,9 3,6 11,8-43,6 12 32 37 Dividend Payout - - 27% 30% - 30% 30% 30% 30% 30% (on Parent Company profit) NET CASH FLOW -23.3 35.6 12.0-25.7 4.4 9.5-29,8 12,2 20,3 24,7 N.F.P. - 144,3-108,7-96,7-122,4-118,0-108,5-138,2-126,1-105,8-81.1 Debt/ EBITDA 4,3 1,9 2,5 3,9 3,2 2,5 2,3 1,8 1,4 1 GEARING 1,4 1,0 0,8 1,0 0,9 0,7 0,7 0,6 0,4 0,3 ROI 8.5% 18.2% 12.5% 7.4% 10.1% 11.9% 14.7% 16.6% 17.3% 18.5% ROE 5.6% 17.8% 11.4% 6.9% 9.3% 13,8% 16,1% 15.4% 15.3% 15,1%