Results Q3 2009: Strategic transition progressing

Utrecht, October 28, 2009

Strategic & operational highlights Divestment Tree of Life North America progressing according to plan. Intention to divest frozen food operations Karl Kemper and Righi. Forensic investigation at American Beverage Corporation (ABC) concluded without further adjustments to 2008 restated results. Financial results Tree of Life North America, PANOS Brands, Liberty Richter, Karl Kemper and Righi reported as discontinued operations. Decrease of 4.5% in revenue continuing operations to EUR 171.3 million (Q3-08: EUR 179.3 million). Operating profit continuing operations of EUR 5.0 million (Q3-08: EUR 17.2 million). Net loss of EUR 20.1 million (Q3-08: net profit of EUR 11.8 million) owing to lower operating result and higher financing charges from continuing operations, and impairment charges at Karl Kemper and Righi. Net cash flow from operating activities of EUR 31.3 million (Q3-08: cash outflow of EUR 10.7 million). Net debt to EBITDAE ratio as at September 30, 2009, of 3.3 (Q2-09: 3.4). Operating result continuing operations in fourth quarter expected to be below break-even.

CEO statement Frans Koffrie, Wessanen CEO, comments: “We are pleased to see further progress is made in Wessanen’s strategic transition to a group with focus on the European organic and specialty food markets, which continue to show vitality despite difficult economic circumstances. The Benelux and German operations are being restructured to reduce complexity and better align these organizations. Not only do we intend to divest Tree of Life North America before the end of the year, but we have also decided to divest Karl Kemper and Righi. The external investigations at ABC have been concluded with no further adjustments to restated 2008 results, and we are now focusing on improving the company.

Our operational performance this quarter at ABC and Wessanen Europe was down from last year, and we expect not to make an operating profit in the fourth quarter of this year. We are satisfied that we stayed well within our financial covenant as our net debt to EBITDAE ratio ended at 3.3 this quarter.”

For more details, please download the complete document:
091028_Wessanen_Results_Q3_2009_NL_DEF.pdf (228 Kb)
091028_Wessanen_Results_Q3_2009_ENG_DEF.pdf (231 Kb)

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