NETHERLANDS: Wessanen loss narrows on lower costs
Wessanen improves result
Wessanen reduced its net losses in fiscal 2013 thanks to lower operating costs and a reduction in financing expenses.
The Dutch group said net losses fell to EUR100,000 (US$137,071), compared to a loss of EUR52.9m in 2012. The group benefited from a 13.6% reduction in the cost of servicing debt as well as improved operating margins. Operating profit rose to EUR11.9m, up from a loss of EUR30.8m in 2012.
Sales from continuing operations, however, were down on 2012. Sales in 2013 slipped to EUR508.5m, compared to EUR520.1m in the prior year.
Wessanen attributed the fall in sales to mix adjustments designed to increase profitability as it focused on higher margin items. The group grew branded revenues by 4.1% in the 12 month period.
Wessanen, which owns brands including Kallo rice cakes and Whole Earth peanut butter, has embarked on a strategy to focus on core natural and organic operations. In April last year, the group acquired French-based organic and fairtrade food firm France Alter Eco. Last month, Wessanen indicated its intention to sell off frozen snacks unit Izico.
oyal Wessanen Q4 and full year 2013 results
Q4 2013 highlights
Revenue Branded up 3.5% to €101.9 million, autonomous revenue growth was 0.5% Portfolio choices to improve profitability negatively impacting revenue Strategic re-segmentation to more accurately reflect different business models and strategic focus Distribution and IZICO classified as discontinued operations; divestment processes under way Advanced discussions with Vroegop Ruhe & Co underway regarding the sale of Natudis Christophe Barnouin appointed member of the Executive Board and new CEO
Full year highlights
Autonomous revenue growth of (3.3)%; at Branded autonomous growth of 2.1% Operating result (EBITE) down to €13.3 million EBITE at Branded up 47% to €24.3 million, even after higher marketing investments Revenue and profit decline at ABC due to weakness at frozen pouches segment Core brands, such as Bjorg, Bonneterre and Clipper, and core categories continue to grow 'Wessanen 2015' completed on plan, delivering expected cost savings Dividend proposed of €0.05 (wholly in cash)
Original source: Wessanen
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