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.
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
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
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.”
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