Wessanen reports further improved results

Utrecht, May 15, 2006

Highlights Revenue in Q1-06 was EUR 408 million, in line with the same period last year. Currency effects contributed EUR 20 million positively. Sales picked up during the quarter after a slow start at the beginning of the year, fuelled by innovations and brand development. EBITAE increased by 23% from EUR 9.2 million to EUR 11.3 million. EBITAE margin rose from 2.2% in Q1-05 to 2.8% in the period. Net profit rose from EUR 3.1 million to EUR 5.1 million. Main drivers were improved EBITAE and the strong decrease in exceptional expenses.

CEO statement Ad Veenhof, Wessanen CEO, says: “The results we present today are in line with our outlook for the year. Margins for all our activities in Europe and North America were equivalent to or better than the same period last year. Our North American distribution activities reported EBITAE of around break-even, compared to EUR (1.2) million negative in Q1-05, showing a consistently positive development towards a healthy, sustainable business. In North America we saw positive autonomous growth with our top ten customers. As said in our outlook, however, the effect of the discontinued distribution contracts caused, on balance, sales to decrease. Our businesses in Europe saw a somewhat slow start of the year, although sales picked up during the period and are expected to continue to grow in Q2. This sales increase will be the result of recently introduced innovations and more effective promotional campaigns boosting sales of our own brands.

The strong improvement in our net profit is also partly due to a very limited amount of exceptional items in Q1-06, demonstrating that restructurings are almost completed. As a result, Wessanen is now lean and agile, and we are ready and able to strengthen our unique position in the competitive food marketplace.”

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For more information, please contact Corporate Communications, phone +31 (0)30 298 88 31; e-mail corporate.communications@wessanen.com.
060515_Q1_2006_ENG.pdf (286 Kb)
060515_Q1_2006_NL.pdf (274 Kb)

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