Royal Numico expects this year a significant growth in sales and cash earnings (net profit before amortisation of goodwill) to approximate Numico's peak year 2000. Sales and cash earnings were last year respectively at EUR 3,807 million (continued operations) and EUR 376 million.

As announced in the press release of 1 October 2001 sales in the 3rd quarter increase by 1% to EUR 1,061 million. This brings the total sales for the first nine months to EUR 3,263 million, a growth of 19% compared with last year (organic growth almost 6%).

Sales in the USA in the 3rd quarter were 2% lower than last year. In Numico's release of the half-year results 2001, expectations were based on a strong growth in the 2nd half year 2001 compared to a weak 2nd half of last year. The recovery of the vitamin and herbs segment in the USA is not expected to take place during the current quarter. Cost reduction measures are taken and these will contribute to the results of next year. The restructuring of the US operations will be finalised before the end of 2001.

In the third quarter EBITA totalled EUR 143 million (9% lower than last year), bringing the total EBITA for the first nine months to EUR 505 million, an increase of 20% compared to last year. Cash earnings for the first nine months amount to EUR 283 million, an increase of 11% compared with last year.

Barring unforeseen events Numico expects the 2001 cash earnings to approximate the 2000 results (cash earnings 2000: EUR 376 million). Numico expects sales in 2001 to grow between 12 and 15%

Numico results 3rd Quarter 2001

Sales (US sales are down 2%) EUR 1,061 million (+ 1%)
EBITA EUR 143 million (- 9%)
Cash earnings EUR 77 million (- 10%)
Cash earnings per share EUR 0.47 (- 13%)

Numico results first nine months 2001

Sales (organic sales growth 5.8%) EUR 3,263 million (+ 19%)
EBITA EUR 505 million (+ 20%)
Cash earnings EUR 283 million (+11%)
Cash earnings per share EUR 1.73 (+ 4%)

New appointments

Numico intends to appoint Mr Peter van Wel as Executive Board Member, sharing responsibilities for the US operations. A new CEO will be appointed shortly for Rexall Sundown Inc.
Mr Mike Meyers has been appointed CEO of GNC Inc.
Mr Trevor Wilkinson has been appointed CFO of Unicity Inc.

Consolidated profit and loss account (unaudited)
(EUR millions)

3rd quarter
First 9 months
2001
2000*
2001 c/w 2000 %
2001
2000*
2001 c/w 2000 %
1,061
1,049
1
Net sales, continued operations
3,263
2,744
19
409
401
2
Raw material costs, etc.
1,255
1,047
20
652
648
1
Margin
2,008
1,697
18
21
23
-4
Other operating proceeds
62
62
-
673
671
-
2,070
1,759
18
Operating expenses:
210
197
7
Personnel costs
622
543
15
292
288
1
Other costs
859
717
20
171
186
-8
Earnings before interest, taxes, amortisation and depreciation (EBITDA)
589
499
18
28
28
-5
Depreciation
84
77
8
143
158
-9
Operating result before amortisation of goodwill (EBITA)
505
422
20
36
35
3
Amortisation of goodwill
103
75
38
107
123
-12
Operating result after amortisation of goodwill (EBIT), continued operations
402
347
16
-
9
-
Operating profit discontinued operations
-
28
-
-39
-49
-20
Financial income and expenses
-123
-103
20
68
83
-19
Profit on ordinary activities before tax
279
272
3
26
31
-16
Tax on profit on ordinary activities
95
89
7
42
52
-20
Profit on ordinary activities after taxation / Group profit
184
183
-
-1
-1
9
Minority interests
-4
-3
52
41
51
-21
Net profit before extraordinary items
180
180
-1
-
-
-
Extraordinary items after tax
494
-
-
41
51
-21
Net profit after extraordinary items
674
180
274
77
86
-10
Net profit before amortisation of goodwill and extraordinary items
283
255
11

* For comparative purposes, sales and operating expenses in the 2000 figures of the discontinued operations (NDDG, Zonnatura and some MLM activities) have been excluded on a line by line basis while the related operating result (EBIT) of these activities (year to date EUR 28 million) is shown separately.

Detailed key figures for the 3rd quarter and first 9 months

3rd quarter
First 9 months
2001
2000*
2001 c/w 2000 %
2001
2000*
2001 c/w 2000 %
As % of net sales
16.1
17.8
EBITDA
18
18.2
13.4
14.9
EBITA
15.5
15.4
7.2
8.2
Net profit before amortisation of goodwill ("cash earnings")
23.8
9.3
7.2
8.2
Net profit before amortisation of goodwill ("cash earnings") and extraordinary items
8.6
9.3
3.8
4.9
Net profit after amortisation of goodwill
20.6
6.6
3.8
4.9
Net profit after amortisation of goodwill before extraordinary items
5.5
6.6
Number of ordinary shares of EUR 0.25 (in millions)
162.8
159.4
2
Outstanding at period-end
162.8
159.4
2
162.8
159.4
2
Average oustanding
162.8
153
6
192.1
189.9
1
Fully diluted at period-end 1)
192.1
189.9
1
Per share development (EUR) 2)
0.47
0.54
-13
Net profit before amortisation of goodwill ("cash earnings")
4.77
1.67
186
0.47
0.54
-13
Net profit before amortisation of goodwill ("cash earnings") and extraordinary items
1.73
1.67
4
0.25
0.32
-22
Net profit after amortisation of goodwill
4.14
1.18
251
0.25
0.32
-22
Net profit after amortisation of goodwill before extraordinary items
1.1
1.18
-6
-
-
Capital and reserves per share
16.17
12.96
0.64
0.72
-12
Gross cash flow per share (adjusted for extraordinary items)
2.25
2.18
3
Per share development fully diluted 3) (EUR)
0.46
0.53
-12
Net profit before amortisation of goodwill ("cash earnings") and extraordinary items
1.69
1.62
5
0.25
0.32
-22
Net profit after amortisation of goodwill before extraordinary items
1.09
1.15
-6

1) Assuming full conversion of outstanding convertibles and exercise of option rights
2) Based on average number of outstanding shares, except for Capital and reserves, which is based on the number of shares outstanding at period-end.
3) Details on calculation included in separate note.

Consolidated balance sheet (unaudited)
(EUR millions)

30-Sep-01
31 December 2000 (after appropriation of profit)
30-Sep-00
Fixed assets
· Intangible fixed assets
4,101
4,133
4,456
· Tangible fixed assets
716
767
794
· Financial fixed assets
194
163
78
5,011
5,063
5,328
Current assets
· Stocks
753
806
768
· Trade debtors
421
480
472
· Other debtors 1)
1,011
422
327
· Deposits, cash at bank & in hand
247
149
226
2,432
1,857
1,793
Trade creditors
312
352
301
Other creditors 2)
1,824
1,209
794
Net current assets
296
296
698
Total
5,307
5,359
6,026
Long-term liabilities
2,426
3,314
3,757
Provisions
227
150
184
Minority interests
21
20
20
Capital and reserves
2,633
1,875
2,065
Total
5,307
5,359
6,026

1) The 30 September 2001 amount includes a receivable of EUR 704 million from the sale of the NDDG-group.
2) The 30 September 2001 amount includes EUR 1,262 million for the current portion of long-term loans (31 December 2000: EUR 376 million).

Consolidated cash flow statement (unaudited)
(EUR millions)

First 9 months 2001
First 9 months 2000
Net profit from ordinary operations
180
180
Adjustments to operational cash flow:
Depreciation
84
83
Goodwill amortisation
103
75
Provisions
-33
4
Long-term liabilities
1
-1
Tax on profit
25
-17
Net change in working capital 1
-24
-106
156
38
Net cash flow from operational activities
336
218
Investments:
Proceeds of sale of tangible fixed assets
8
10
Capital expenditures
-88
-77
Long-term investments
7
-11
Proceeds of sale Zonnatura
26
-
Acquisition subsidiaries, minority interests and brands 2
18
-2,032
Net cash flow from investment activities
-29
-2,110
Financing:
Issued new shares 3
30
583
Issued convertible bonds
1
693
Change of lease commitments and loans (short + long) 3
-6
1,470
Dividend paid in the year under review
-63
-80
Minority interests
1
7
Exchange rate differences on cash and cash equivalents
-
10
Net cash flow from financing activities
-37
2,683
Change of net cash position
270
791
Net cash position 1 January
-144
-856
Net cash position 30 September
126
-65
1 This concerns changes exclusive of tax on profit, dividends, borrowings and swaps
2 Including net cash position of acquired companies and non-operational cash movements related to acquisitions
3 Exclusive of conversion

Primary segment information
(EUR millions)

3rd quarter 2001
3rd quarter 2000 *
Net sales
EBITA
EBITA in % of sales
Net sales
EBITA
EBITA in % of sales
Infant Nutrition
237
42
18
230
44
18
Clinical Nutrition & Diets
117
29
25
105
25
24
Consumer Diets & Sports Nutrition
322
38
12
279
33
12
Vitamins & Herbs
341
34
10
394
58
14
Other (including not allocated)
44
0
-
41
-2
-
Total
1,061
143
13.4
1,049
158
14.9
First 9 months 2001
First 9 months 2000 *
Net sales
EBITA
EBITA in % of sales
Net sales
EBITA
EBITA in % of sales
Infant Nutrition
724
131
18
678
124
18
Clinical Nutrition & Diets
349
83
24
305
71
23
Consumer Diets & Sports Nutrition
934
119
13
674
72
11
Vitamins & Herbs
1,136
171
15
967
163
17
Other (including not allocated)
120
1
-
120
-8
-
Total
3,263
505
15.5
2,744
422
15.4

Secondary segment information
(EUR millions)

3rd quarter
First 9 months
Net sales, continued operations
2001
2000*
2001 c/w 2000 %
2001
2000*
2001 c/w 2000 %
Northern Europe
149
138
7
456
423
8
Central Europe
61
61
1
183
177
3
Southern Europe
79
73
9
245
223
10
Eastern Europe
49
49
0
152
132
15
North America
632
643
-2
1,974
1,548
28
Asia, Africa, America
91
85
7
253
241
5
Total continued
19
1,061
1,049
1
3,263
2,744
Discontinued operations:
NDDG
94
276
Zonnatura
4
14
Other (mainly MLM)
6
16
1,061
1,153
3,263
3,050

* Restated for discontinued business and some reclassifications

Extraordinary items after tax

This consists of the following items (EUR millions):

  • net book profits on the divestments of NDDG and Zonnatura 616
  • provisions related to the aforementioned divestments (net of EUR 15 million tax) (72)
  • write-off on stocks (net of EUR 10 million tax) (50) 494

Capital and reserves
During the first 9 months of 2001, capital and reserves rose by EUR 758 million to EUR 2,633 million. The increase can be specified as follows:

30-Sep-01 31-Dec-00
Capital and reserves as at beginning of the year 1,875 955
Conversion/option rights 6 39
Issue shares 28 551
Share issue costs -20
Interim dividend -40 -
Stock dividend 62 47
Change in accounting principles 15
Net profit for the period 674 162
Exchange rate differences 28 126
Capital and reserves at the end of the period 2,633 1,875

As at 30 September 2001 Guarantee Funds amount to 55.9% of total assets (49.1% at 2000 year-end).