Wessanen Trading update Q3 2016: Sustaining profitable growth

Trading update Q3 2016: Sustaining profitable growth

Q3 2016 highlights

  • Total reported revenue growth 9.2% (8.8% YTD)
  • Own brands autonomous growth 7.4% (9.2% YTD)
  • Total autonomous revenue growth 3.9% (7.0% YTD) due to accelerated decline of private label business
  • EBITE margin of 7.3% despite significant increase in A&P. YTD EBITE margin is up 90bps to 8.3%
  • Integration of Piramide, Ineobio and Mrs Crimbles fully on track

CEO Statement

We have sustained our good growth momentum on own brands in Q3 and YTD growth stands at 9.2%. Autonomous revenue growth for total Wessanen remains at the upper end of our guidance range of 5-7% year to date, despite an accelerated decline of private label business in Q3. YTD EBITE has increased by 22.4% and margin is up 90bps to 8.3%. In the quarter we achieved an EBITE margin of 7.3% despite investing significantly more A&P into our brands. Integration plans of Piramide, Inebio and Mrs Crimbles are being executed as planned.

We are on track to deliver a good 2016 result both in terms of growth and profit as we are further strengthening our brands in a growing market for healthier and more sustainable food.

Guidance FY 2016

  • Total autonomous revenue growth at the upper end of our long term guidance range of 5-7%
  • We expect to report:
    • a higher EBITE in 2016 versus 2015
    • an increase of the EBITE % of revenue
  • Net financing costs around €1-2 million
  • Tax rate of around 30%
  • Capital expenditures €8-9 million
  • Depreciation and amortisation €7-8 million

 Analyst & investor meeting

 At 10h00 CET, a conference call for analysts, investors, and media will be hosted by Ronald Merckx (CFO). The dial-in number is +31 20 703 8261 (toll free 0800 023 1436) - please quote "Wessanen". There will also be a live audio webcast via www.wessanen.com.

The press release and presentation are available for download at www.wessanen.com.

Media, investor & analyst enquiries

Ronald Merckx (CFO)
Phone   +31 20 3122 124
Ronald.Merckx@wessanen.com

Important dates

16-11-2016       Capital Markets Day (Italy)

15-02-2017       Publication Q4 2016 results

For PDF click here



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